Following the amendments to the Work Injury Compensation Act which were effective from 1 June 2012, market agreement has been reached to adopt the following protocol in cases where there are multiple insurance policies:
1. Contribution Clause:
(a) All Work Injury Compensation (WIC) project policies shall not contain any “Non-Contribution Clause” whatsoever.
(b) Only WIC annual policies shall be permitted to have any “non-contribution” clause.
2. In all cases where a worker is injured in the course of his employment at a project site, the project policy shall respond unreservedly for all WICA and common law claims.
3. In all other cases where the worker is injured due to an accident not occurring at the project site, the annual WIC policy of the direct employer shall respond. This shall apply even if the project policies purportedly extend the coverage to “anywhere in Singapore”.
4. Project policies are deemed to extend to cover all tiers of sub-contractors involved in the project i.e. other parties may only be named as additional insured names.
These agreements are ironic because the 2012 June change was primarily due to disputes of the “non-contribution clause” which causes Ministry of Manpower (MOM) to decide that the employer’s annual policy (and not the project policy) must be the primary policy to respond to any claim irrespective of where it occurs. What the insurers have agreed among themselves is just the opposite.
You can contact me if you need advice on Work Injury Compensation.