Are All WICA Policies Designed the Same?

Jacky Ong

6/10/20252 min read

In Singapore, not all Work Injury Compensation Act (WICA) policies are identical, despite adhering to mandatory standards established by the Ministry of Manpower (MOM) under the WICA 2019 framework. Here’s a clear breakdown to guide your decision-making.

Common Requirements for All WICA Policies

All WICA-compliant policies must:

  • Cover Mandatory Employees: Include all manual workers (regardless of salary) and non-manual workers earning up to SGD 2,600 per month.

  • Meet Minimum Compensation Limits: Provide coverage for medical expenses, medical leave wages, and lump-sum compensation for permanent incapacity and death. (Note: MOM periodically reviews and updates these limits.)

  • Be Issued by Designated Insurers: Only insurers approved by MOM can issue WICA policies.

  • Follow a No-Fault Framework: Employees are compensated for work-related injuries or diseases without needing to prove employer fault.

Important Update:

Effective 1 November 2025, WICA compensation limits will increase:

  • Death: From SGD 225,000 to SGD 269,000 (maximum); minimum increases from SGD 76,000 to SGD 91,000.

  • Permanent Incapacity: From SGD 289,000 to SGD 346,000 (maximum); minimum increases from SGD 97,000 to SGD 116,000.

  • Medical Expenses: From SGD 45,000 to SGD 53,000 or one year from accident date, whichever is earlier. (Source: MOM Press Release)

Differences in WICA Policies

Although core requirements are uniform, variations exist in coverage, premiums, and policy features:

1. Additional Coverage:

  • Higher Limits and Extended Benefits: Policies may include higher medical expense limits, non-occupational accident coverage, and common law liability protection (coverage for legal claims outside WICA’s no-fault framework).

  • Expanded Employee Scope: Employers may voluntarily extend WICA coverage to non-mandatory employees (e.g., non-manual workers earning above SGD 2,600) to improve workplace welfare.

2. Premium Costs:

  • Premiums vary based on industry risk levels, employer safety records, and policy inclusions. Insurers often offer discounts to companies with strong safety programs.

  • Policies with extensive additional coverage typically incur higher premiums.

3. Policy Features and Services:

  • Insurers may differentiate through services like 24-hour claim reporting, efficient claim processing, safety consultations, and overseas medical treatment coverage.

4. Insurer Reputation and Claims Handling:

  • Efficiency and reliability in handling claims differ among insurers, influencing employee satisfaction and continuity of business operations.

Practical Examples:

  • Enhanced Medical Coverage: A construction firm benefited from an extended medical coverage option, ensuring comprehensive treatment after workplace injuries, thus boosting employee morale.

  • Tailored Coverage for High-Risk Roles: A delivery company with motorcycle riders secured supplementary insurance covering high-risk activities, effectively managing liabilities and quickly addressing employee injuries.

Key Considerations for Employers

Employers should:

  • Ensure policy compliance with mandatory MOM requirements.

  • Compare premiums against enhanced coverage features.

  • Evaluate additional benefits based on workforce-specific needs.

  • Assess insurer reliability and claims handling efficiency.

  • Review policy exclusions and limitations carefully to avoid coverage gaps.

Conclusion

While all WICA policies must meet MOM’s foundational requirements, they are not identical. Differences in premium costs, additional coverage, services, and insurer reliability can significantly impact business and employee wellbeing. Employers should carefully select policies aligned with their needs. For detailed guidance, you may contact me at hello@jackyong.sg