29 September 2020
On 1 September 2020, the Ministry of Manpower (“MOM”) announced changes to the Work Injury Compensation Act 2019 (“WICA 2019”) which took effect the same day.
WICA 2019 was passed on 3 September 2019 and gazetted on 15 November 2019. As previously announced on 7 August 2020, the implementation of the WICA 2019 regulatory regime for insurers where only insurers designated by MOM can issue work injury compensation insurance policies has been deferred to 1 January 2021 as preparations by insurers have been affected by Covid-19 circuit breaker measures and remote working arrangements. More details on the deferral can be found on the MOM website.
Changes to WICA from 1 September 2020
The following changes to WICA 2019 took effect from 1 September 2020:
- Employers must report any instances of leave arising from work injury, including light duties
- Claims are considered made when the employer is notified of the accident
- Compensations can be based on a multiple of basic monthly salary
- Compensation can be based on current incapacity assessment
- Employers are liable to compensate for shortfall in earnings when their employees are on light duties
- MOM may allow for doctor-switching for current or permanent incapacity assessment
- Greater recourse for employers to recover compensation paid out on the basis of error or fraud
- Increased penalties for offences