WICA & FWMI
Many companies have difficulties in understanding the difference in WICA and FWMI. As per required by the Ministry of Manpower (MOM), it is mandatory for employers to purchase WICA for all their workers, whether they are doing manual or non-manual work.
As for FWMI, as it name spell, it is meant for Foreign Worker. It is a Medical Insurance mandatory requirement from Ministry of Manpower (MOM) upon foreign worker entering into Singapore and for those currently working in Singapore.
The intention of FWMI is to provide coverage for foreign worker medical expenses such as inpatient hospital expenses or day surgery expenses due to illnesses or injuries that are not work-related.
It is different from Work Injury Compensation Insurance which only covers work-related injuries and occupational diseases.
What is WICA
WICA stand for Work Injury Compensation Act. The Work Injury Compensation Act (WICA) covers any local or foreign employee who is under a contract of service or contract of apprenticeship, regardless of salary, age or nationality. The Work Injury Compensation Act lets you claim for injuries and occupational diseases that happen at work or as a result of work.
When you can Claim
- Been injured by an accident arising out of and in the course of employment.
- Been injured while on an overseas assignment.
- Contracted an Occupational Disease.
- Contracted a disease from exposure to biological or chemical agents at work.
What You can Claim
WICA lets employees claim for medical leave wages, medical expenses and lump sum compensation for permanent incapacity, if any, or death. However, there are limits to each type of compensation.
Who can Claim
You can claim for compensation if you have been injured or contracted a disease as a result of work. You remain eligible to claim for compensation even if:
- You no longer work for the employer or your work pass is cancelled.
- The accident happened while you were on an overseas assignment.
- The accident happened while on a flexi-work arrangement that you agreed with your employer.
Fines and Penalties
With effect from 1 September 2020, fines and penalties will be imposed by MOM for employer breaches of the legislative requirements:
1. Failure by employers to maintain compulsory WIC Insurance – S$10,000 fine and/or 12 months’ jail
2. Illegal deduction of salary by employers to defray insurance costs – S$5,000 fine and/or 6 months’ jail
Who benefits from the coverage
WICA covers two parties:
a. Employers
b. Employees
Coverage for employers:
1. Legally required compensation to employees injured while working, as required by WICA regulations
Coverage for employees:
1. Medical expenses
2. Lost wages while on medical leave (includes salary, bonus, overtime pay, food and housing allowances, but excludes CPF payment)
3. Lump-sum compensation for death, or total permanent disability
Do I need Work Injury Compensation Insurance?
If your business or your employees are involved in the following, then this type of insurance is particularly critical for you:
Labour-intensive industries: construction firms, renovation & interior designers, manufacturing firms, warehouse/storage firms, food & beverage establishments, retail stores, etc.
Frequent exposure to outdoor environments: on-site engineers, technicians, goods delivery, road works, building painters, vehicle towing, car-washing, etc.
High-hazard industries: scaffolding, shipyards, any business doing offshore work, fishing, working with aeroplanes, etc.
How is the premium determined?
The premium payable depends on the following factors:
- Business type, nature of business
- The employees’ job scope
- Estimated annual earnings of employees
- Claims history
- Place(s) of employment
What is FWMI
FWMI stands for Foreign Worker Medical Insurance (FWMI) is a mandatory requirement for employers of foreign workers who are Work Permit and S-Pass holders.
Employers are required to purchase and maintain a minimum medical insurance coverage of at least $15,000 per year for each Work Permit and S-Pass holder for non-work-related accident or illness, inpatient hospitalisation and day surgery.
This compulsory medical insurance requirement was introduced by the Ministry of Manpower (MOM) in tandem with the withdrawal of healthcare subsidies for foreigners since 1 Jan 2008 in order to help employers manage the potentially high medical bills of their foreign workers. This requirement is for basic coverage, but employers are still responsible for any uninsured medical expenses of their foreign workers.
Under the Employment of Foreign Manpower Act, employers are responsible for the well-being of their foreign employees which includes providing adequate medical treatments and paying for their medical expenses. For this reason, employers are encouraged to buy higher coverage to protect from any excessive medical bills.
What does FWMI cover?
Foreign Worker Medical Insurance covers the following non-work related hospitalisation or day surgery expenses:
- Pre-hospitalisation/Surgery specialist consultation (within 90 days prior to inpatient treatment or surgery)
- Pre-hospitalisation/Surgery diagnostic services (within 90 days prior to inpatient treatment or surgery)
- Hospital room and board (4 or 6 bedded wards in Government/Restructured hospitals)
- Intensive Care Unit
- Surgery charges, operating theatre, and anesthetist fees
- In-hospital physician’s visit
- Post-hospitalisation/Surgery treatment (within 90 days immediately following discharge from hospital or surgery)
- Hospital miscellaneous services and supplies
- Emergency outpatient treatment (optional)
- Personal Accident Benefit (non-work-related accident) (optional)
- Death benefit
Do I need Foreign Worker Medical Insurance?
Foreign Worker Medical Insurance (FWMI) is a mandatory requirement for employers of foreign workers who are Work Permit and S-Pass holders.
Is it illegal to not purchase Foreign Worker Medical Insurance when required?
Yes, it is. Employers who don’t purchase Foreign Worker Medical Insurance can be jailed up to 12 months, fined up to $10,000, or both.
For detailed wording for FWMI and Pricing. Please write to us or call us!!
CALL US
96522277
Address
5008 Ang Mo Kio Ave 5, #04-09 Techplace II, Singapore 569874
enquiry@quotefirst.com.sg