1) Who will be covered under the Work Injury Compensation Act? Are self-employed persons covered under the Work Injury Compensation Act?
The Work Injury Compensation Act covers all employees in general, who are engaged under a contract of service or apprenticeship, regardless of their level of earnings.
Self-employed persons, independent contractors, domestic workers, members of the Singapore Armed Forces, officers of the Singapore Police Force, the Singapore Civil Defence Force, the Central Narcotics Bureau and the Singapore Prisons Service are not covered under the Work Injury Compensation Act.
2) What is the difference in coverage between the Workmen’s Compensation Act and Work Injury Compensation Act?
Unlike the Workmen's Compensation Act which covers all manual workers and non-manual workers with monthly earnings of $1,600 and below, the Work Injury Compensation Act covers all employees in general, whether they are manual or non-manual workers and regardless of their level of earnings.
3) When will the Work Injury Compensation Act take effect?
The Work Injury Compensation Act will take effect on 1 April 2008.
Compensation Benefits
4) What are the compensation benefits under the Work Injury Compensation Act?
Under the Work Injury Compensation Act, an injured employee is entitled to claim the following compensation benefits:
- Medical leave wages. These include (a) full pay up to 14 days for outpatient medical leave; and (b) full pay up to 60 days for hospitalization leave. Beyond these two periods, 2/3 salary is payable up to a maximum period of one year following the date of accident;
- Medical expenses. These include medical expenses incurred within one year from the date of accident and up to a cap of $25,000; and
- Lump sum compensation for permanent incapacity (PI) or death, if any. The compensation amount is subjected to the following limits:
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Limits
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Amount
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Permanent Incapacity
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Maximum
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$180,000 x % loss of earning capacity
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Minimum
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$60,000 x % loss of earning capacity
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Death
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Maximum
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$140,000
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Minimum
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$47,000
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5) What is the increase in compensation limits for permanent incapacity and death under the Work Injury Compensation Act compared to the Workmen’s Compensation Act?
The maximum and minimum compensation limits for all age groups will be adjusted as follows:
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Limits
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Workmen's Compensation Act
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Work Injury Compensation Act
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Permanent Incapacity
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Maximum
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$147,000 x % loss of earning capacity
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$180,000 x % loss of earning capacity
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Minimum
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$49,000 x % loss of earning capacity
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$60,000 x % loss of earning capacity
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Death
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Maximum
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$111,000
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$140,000
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Minimum
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$37,000
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$47,000
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6) Under the Work Injury Compensation Act, is the employer liable for costs of medical treatment received overseas?
Under the Work Injury Compensation Act, the employer is liable for the costs of medical treatment received overseas if the accident happened when the employee was working overseas and immediate medical treatment was needed.
7) When will an injured employee be entitled to the new compensation benefits under the Work Injury Compensation Act? Are the new compensation benefits applicable to work injury compensation claims arising out of accidents that happened before 1 April 2008?
The new compensation benefits under the Work Injury Compensation Act are applicable to accidents that occurred on and after 1 April 2008. The existing Workmen's Compensation Act would continue to apply to all accidents that occurred before 1 April 2008.
Compulsory Insurance Requirement
8) Is it mandatory for employers to buy insurance for all employees eligible for compensation under the Work Injury Compensation Act? Who are required to be insured under the Work Injury Compensation Act?
It is not mandatory for employers to buy insurance for employees who are newly covered under the Act (i.e. employees who are involved in non-manual work and have monthly earnings of above $1,600). Nonetheless, employers will be required to pay compensation in the event of a valid claim, even if they do not buy insurance. As such, employers can decide whether or not to buy insurance for these newly-covered employees, after weighing their risks with the cost of insurance premiums.
There is no change to the compulsory insurance requirement for employees who are already covered under the Workmen's Compensation Act prior to 1 April 2008 (i.e. manual workers regardless of their level of earnings, and non-manual workers with monthly earnings of $1,600 or less). Employers are required by law to buy insurance for these employees, unless they are specifically exempted.
9) If employees are already covered by existing insurance policies (e.g. group personal accident insurance), is the employer still required to buy work injury compensation insurance?
Employers are allowed to use one or more insurance policies to cover all the liabilities that they may incur under the Work Injury Compensation Act. Companies with existing insurance policies may therefore choose to either switch to work injury compensation insurance policies or adjust their existing policies (e.g. by adding riders) to ensure that their overall insurance coverage meets the requirements under the Work Injury Compensation Act.
The current practice of not accepting individual-based insurance policies such as the Shield plans, remains unchanged. This is because claims made against such individual-based insurance policies would typically prejudice the employee and result in a subsequent premium increase or coverage reduction for the employee.
Accident Reporting Requirement
10) Under the Work Injury Compensation Act, when must an employer report an accident? How do employers report an accident to MOM?
The accident reporting requirements under the Work Injury Compensation Act has been simplified and aligned with those under the Workplace Safety and Health Act.
Employers are required to report work-related accidents to MOM through iReport within 10 days of the occurrence of the accident:
- Where it results in the death of an employee.
- Where it renders an employee unfit for work for more than 3 consecutive days or hospitalized for at least 24 hours.
The reporting requirement for the less severe injuries has been removed but the obligation to compensate an injured employee remains. For example, if an employee is granted 3 days (or fewer) of medical leave, the employer is not required to report the accident. However, the employer remains liable to pay compensation to the employee.
Failure to report a work-related accident is an offence which carries a fine of up to $5,000 for a first-time offence, and a fine of up to $10,000 and/or a jail term of up to six months for subsequent offences.
Claim application
11) When must an injured employee file a claim if he wishes to seek compensation under the Work Injury Compensation Act?
An employee has up to one year from the date of the accident to submit a claim for work injury compensation to MOM.
12) How does an injured employee file a claim under the Work Injury Compensation Act? What does the overall claim process include?
The employee is required to fill a claim application form and submit it to MOM within one year from the date of accident. The form is available online at: http://www.mom.gov.sg/maintaining_safe_and_healthy_workplace/eservices_forms.html
and at MOM counters. MOM will also extend a copy of the claim application form to the injured employee upon receipt of an accident report by the employer. For more information on the claim process, please refer to the Work Injury Compensation Benefits and Claim Process Guidebook.
13) Can an injured employee file a claim under the Work Injury Compensation Act as well as sue his employer in the civil courts for damages arising from the injury?
An employee who has been injured in a workplace accident may either file a claim for compensation under the Work Injury Compensation Act or sue his employer in the civil courts for damages, but is not entitled to do both.
Notwithstanding this, if the injured employee has filed a claim for work injury compensation under the Act, he may still withdraw his claim under the Act to initiate civil action. However, his claim has to be withdrawn within 28 days after the Commissioner serves him with a Notice of Assessment (NA) to inform him of his compensation amount.
After the Commissioner serves the NA, the employee and employer (and the insurer, if applicable) have up to 14 days to accept or object to the NA. The following three scenarios are possible at the end of the 14-day period:
Scenario 1:
All parties accept the NA. The employer (or the insurer, if applicable) is required to make payment to the employee within 21 days after the date of service of the NA. The case is resolved and the employer will no longer be able to sue his employer in the civil courts subsequently.
Scenario 2:
One or more parties object to the NA. The employee will have a further 14 days (or up to 28 days after the service of the NA) to decide if he wishes to proceed with his claim under the Act, or withdraw his claim. Once the employee decides to proceed with his claim under the Act, he will generally no longer be able to sue his employer in the civil courts subsequently.
Scenario 3:
The employee decides that he would like to sue his employer instead of claiming work injury compensation. He should then withdraw his claim from under the Act in order to commence civil action.
Source: MOM Website
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