Why Is WICA Insurance Important To Workers?

Certain jobs put staff’s lives at risk. Window cleaners hoist themselves up hundreds of feet off the ground to ensure your windows are squeaky clean. Truck drivers and delivery riders put themselves at risk of road accidents when delivering goods to the market. Construction workers climb up and down the scaffolding and work with humongous and thunderous equipment like jackhammers and cranes every day. Thanks to WICA insurance in Singapore, workers with dangerous jobs can make claims when they get injured at work.

WICA, the Work Injury Compensation Act, allows employees who got work-related injuries and contracted and developed diseases due to the nature of work to make claims regardless of their salary level, according to the Singapore Ministry of Manpower.

Employees can claim medical leave wages, medical expenses coverage, and lump-sum compensation.

Learn more about the WICA insurance in Singapore and how it benefits the workforce.

All You Need To Know About WICA Insurance In Singapore

Instead of filing a case against the company to demand compensation, injured or ill workers could claim payment under the WICA without a lawyer. It is a cheaper and more efficient process than a lawsuit.

Who is covered by the WICA insurance in Singapore?

According to the Singapore Ministry of Manpower, WICA covers local and foreign employees under a service or apprenticeship contract. It does not cover self-employed, domestic workers, and uniformed personnel.

Who is eligible for compensation?

Employees covered by theWICA insurance in Singaporecan claim compensation when they have been injured or contracted a disease because of their work.

The employees can still make claims, even if they are no longer working for the employer, that the injury happened overseas during a flexible-work arrangement.

The employees’ dependents can also claim compensation if the employee dies.

Learn more about WICA here.

What compensation can you claim?

According to the Singapore Ministry Of Manpower, there are three primary compensation types in WICA insurance. These are medical leave wages, medical expenses, and lump-sum compensation.

●      Medical leave wages

The employee receives pay on their outpatient leaves and hospitalisation leaves. However, outpatient and hospitalisation leave coinciding with rest days and non-working public holidays are not covered.

●      Medical expenses

The employer has to pay the medical expenses of each employee, amounting to a maximum of SGD 45,000 a year.

Medical expenses are composed of consultation fees, treatment fees, and ward fees, amongst others.

●      Lump-sum compensation

In WICA insurance, lump-sum compensation refers to the amount of money you and your dependents claim when the work-related injury and disease has affected the employee’s ability to work. It could be permanent incapacity, current incapacity or death.

Learn more about the types of WICA insurancecompensation at the Singapore Ministry Of Manpower‘s website.

Now that you know how WICA insurance works, it is time to learn why WICA and other workers’ compensation benefits are advantageous.


Benefits Of Having Workers Compensation Insurance

Insurance is a form of risk management that protects parties from financial loss due to life uncertainties, such as diseases, accidents, theft, disasters, and more.

Insurance companies are called insurers. Insurers sell different types of insurance, such as professional indemnity insurance coverage and D&O insurance in Singapore.

Once a person purchases insurance, the insurer will hand the insurance policy or the contract between the person and the insurer. The insurer collects money from the person or the policyholder monthly. Thebusiness insurance cost in Singapore varies. The person or the policyholder can make claims for compensation when accidents or disasters happen.

Here are the reasons why it is beneficial for employees to have workers’ compensation.

1. Enables employees to provide financially during idle time

Work-related injuries are no joke. Employees with hazardous jobs are at risk of losing their ability to work.

Some employees have their arms and legs broken at work, restricting their mobility. It makes them incapable of working in the office for quite some time.

People who are not covered by WICA insurancedo not earn during their downtime period or whilst they are recovering.

On the other hand, people who get permanent injuries, such as getting their legs amputated and losing their eyesight, that inhibit them from having a stable job get lump-sum money through the insurance.

Some people use the money to establish a small business where they can still have a permanent source of income.

2. Beneficiaries get death benefits.

Unfortunately, some employees lose their lives whilst on duty. It could be due to accidents or disasters, such as fire. It is a huge challenge for the bereaved family, especially if the employee is the household’s breadwinner.

The WICA insurance gives a lump sum to the beneficiaries, who are usually bereaved families in case death happens.

This money can cover the family’s expenses, such as food, housing, and education, for the first few months after the death. The lump sum can also cover the funeral cost. They could also use the money to start a business as a new source of income.

3. It lifts the burden of paying medical expenses.

It is a burden for both employees and the company to pay for the medical expenses. Thankfully, WICA insurance covers a portion of medical expenses, from treatment fees to medication costs.

The employees don’t have to pay for the work-related medical expenses out of their pockets and the employers don’t have to shell out money. Workers’ compensation insurance lifts this financial burden.

4. It boosts the reputation of the company.

Employers in Singapore must get WICA insurance for their employees. Otherwise, they will get entangled with the law.

Moreover, many workers today prefer employers that provide clear and generous workers’ compensation benefits. They trust companies with WICA insurance and prefer to stay in the company.

It boosts the company’s reputation not only to the government and its employees but to other businesses as well.


Besides professional indemnity insurance coverage and D&O insurance in Singapore, worker compensation benefits are another insurance companies have to take care of. It mutually benefits the company and its employees.


Do you want to learn more about insurance, such as the business insurance cost in Singapore? Visit Blacaz. Blacaz is one of the most trusted insurance companies in the country.

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