truck-accidentIf you are a business owner and employs foreign construction workers, you may use the workers to double as drivers in vehicles plying to and from work. You may be shocked to know that you have been bending the rules.

Many companies do not seem to be aware of the Ministry of Manpower’s Conditions of Work Permit for Employers of Construction Workers’ restriction on Work Permit holders driving in Singapore.

The Employment of Foreign Manpower Act states that “Work Permit holder who is employed as ‘Construction Worker’, is not allowed to drive in the course of work on public road unless the occupation stated in the Work Permit shows he is employed as a driver.” 

NTUC Income has recently went to extend to insert an additional clause in the “General Exclusion” under Commercial Vehicle Insurance Policy read as “being driven in the course of work on a public road by a foreign worker whose occupation stated in his/her Work Permit is that of a construction worker.”

You can read the following relevant articles published in Straits Times:

  • Construction worker can’t double as driver: Insurer
  • Foreign workers: Income’s driving ‘ban’ baffling
  • Law doesn’t let foreign construction workers drive

Update: With effect from July 9, 2014, NTUC has removed general exclusion clause on vehicle driven by construction worker on public road. Below is the announcement

We have completed the review of our commercial vehicle policy cover and claim practices with the objective to bring it in-line with the industry practices.

From the review, we will be removing a specific exclusion on construction worker driving on public road. This exclusion is not common in the commercial policy of other insurers.

Moving forward, we will also be adopting similar claim approach when dealing with construction worker driving in the course of work like all other insurers.

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Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
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  • Those with s pass doing as driver job.the risk is same. N I no understand why contruction co. Nw all cnnt apply driver holding w-p. Even those have many year driver in singapore.

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