Since it doesn’t have natural resources, Singapore relies heavily on human capital for its thriving economy. This is why the government emphasizes the need to protect workers against accidents and unforeseen dangers that may affect productivity. Work injury compensation insurance is one of the policies employers are required to invest in to protect their workforce.
Singapore has moderate to high-risk industries. Whether an employee is working in logistics, tech, or manufacturing, an accident could occur unexpectedly. Work injury compensation insurance protects employees and businesses from costs related to the injury. Find out more about it and how you can insure your workers here.
Ensures employers take precautions to prevent accidents.
Before an insurance company takes on responsibility for any claims made over an injury, it will seek to determine the circumstances surrounding the accident. Are there any workplace hazards? Was the accident a result of negligence? These are some of the questions that insurance companies ask when a claim is made against work injury compensation insurance.
Given the delicate nature of this insurance policy, employers need to go out of their way to ensure the workplace is a safe environment for the workers. A business that reports multiple accidents reflects badly on the employer. The situation could be worse if the injuries result in deaths.
This also puts the company in a delicate place since insurers will start charging high premiums or even avoid providing work injury compensation insurance for such a business.
Workers are protected if they become permanently incapacitated.
Workplace injuries can have different outcomes. The worker may be forced to spend some time away from work. This translates to a loss of income, which will affect the worker’s quality of life. During the period the worker is away from work, he will need compensation to cater for his health and daily needs.
When a worker is permanently incapacitated, he can no longer earn a living. He will be entitled to compensation because it is not his fault that he is no longer productive.
Families are protected in case of death.
Unfortunately, some injuries result in the death of workers. For example, in the past decade, the construction industry in Singapore has registered several fatal workplace accidents. 2013 recorded the highest number of deaths at 34 workers, while 2020 had the least number of fatalities where nine workers lost their lives.
These workers probably had families that depended on them for their survival. Work injury compensation insurance ensures that grieving families get their due and that the loss of life does not automatically result in loss of income.
Protects businesses from financial ruin
Work injury compensation claims often cost thousands of dollars. A company, irrespective of its size, can easily be ruined if it has to cover these costs every time there is a workplace injury. Whether the compensation is in the form of medical leave wages or incapacitation claims, the company may be forced to cut down its expansion plans to cover the compensation costs.
A business with work injury compensation insurance is unlikely to have its finances tied up in lawsuits. Without worrying about the unexpected costs, entrepreneurs can focus on running the business and providing a safe environment for workers to boost productivity.