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Q1: What are the changes to WICA compensation limits?
WICA compensation limits are updated every 4 years, to keep pace with increases in nominal wages and healthcare expenses. Otherwise, the value of WIC compensation would be eroded by inflation. Both maximum and minimum compensation limits for death and permanent incapacity (PI) will be increased by about 10% , while the compensation limit for medical expenses will be raised 25%.
| |
Limits |
Existing Limits |
New Limits |
| Death |
Minimum |
$69,000 |
$76,000 |
| Maximum |
$204,000 |
$225,000 |
Total
Permanent
Incapacity* |
Minimum |
$88,000 |
$97,000 |
| Maximum |
$262,000 |
$289,000 |
Medical
Expenses |
|
Up to $36,000 or 1 year from date of accident, whichever is reached first |
Up to $45,000 or 1 year from date of accident, whichever is reached first |
Q2: How were the new WICA compensation limits calculated?
The basis for the new limits are the same as in past updates.
The new WICA compensation limits for death and PI are based on income growth. Nominal median gross monthly income of employed residents grew by a total of around 10% in the 4 years ending 2017.
The 10% increase was applied to the 2016 limits to derive the new 2020 limits.
The medical expenses limit of $45,000 was chosen to fully cover more than 95% of public hospitalisation bills for industrial accidents occuring in the 4 years ending 2017.
Q3: When will the new WICA compensation limits be effective?
The WICA compensation limits will be updated with effect from 1 January 2020. The new limits apply to accidents occuring on or after 1 Jan 2020, i.e. if an accident occured before 1 Jan 2020, and the WIC claim for the accidents is made after 1 Jan 2020, the old compensation lmits apply.
Q4: What will happen to my WIC policy once the new compensation limits kick in on 1 Jan 2020?
Will I be insured up to the new limits?
Your WIC policy should state explicitly that your company is insured for all sums that the company is liable for under the WICA. If so, your company will be automatically insured up to the new limits when they become effective. You are encouraged to find out more from your insurer before 1 Jan 2020.
Q5: What is the history of changes to WIC compensation limits?
The more recent updates to WIC limits are shown below.
2008
Compensation limits for death and PI were raised by 25%.
| |
Limits |
Before 1 Apr 2008 |
From 1 Apr 2008 |
| Death |
Min |
$37,000 |
$47,000 |
| Max |
$111,000 |
$140,000 |
| Total PI |
Min |
$49,000 |
$60,000 |
| Max |
$147,000 |
$180,000 |
2012
Compensation limits and medical expenses cap were raised by around 20%.
| |
Limits |
Before 1 Jun 2012 |
From 1 Jun 2012 |
| Death |
Min |
$47,000 |
$57,000 |
| Max |
$140,000 |
$170,000 |
| Total PI |
Min |
$60,000 |
$73,000 |
| Max |
$180,000 |
$218,000 |
| Medical Expenses |
|
$25,000 |
$30,000 |
2016
Compensation limits and medical expenses cap were raised by around 20%.
| |
Limits |
Before 1 Jan 2016 |
From 1 Jan 2016 |
| Death |
Min |
$57,000 |
$69,000 |
| Max |
$170,000 |
$204,000 |
| Total PI |
Min |
$73,000 |
$88,000 |
| Max |
$218,000 |
$262,000 |
| Medical Expenses |
|
$30,000 |
$36,000 |
Meanwhile, please feel free to contact us if you need further clarifications. |