Audit of Insurance Companies' Coverage of Employees with Disabilities

10 Ms Denise Phua Lay Peng asked the Minister for Manpower whether the Ministry can commission an audit of all insurance companies to ensure (i) they approve the applications of workmen's compensation insurance coverage for employees with disabilities and (ii) all employees with disabilities are covered for workmen's compensation.

Mrs Josephine Teo: All employees, including those with disabilities, are covered by the Work Injury Compensation Act (WICA) and can receive work injury compensation from their employers if they suffer an injury arising out of and in the course of work.

We do not condone selective coverage or cherry-picking of employees based on their personal characteristics by insurers. With the new WICA 2019, insurers offering WICA policies must be licensed by the Ministry of Manpower (MOM). The licensing conditions will prohibit designated insurers from refusing to cover certain group of employees based on personal characteristics such as disability, age, or health status. Under the new Act, designated insurers will also have access to companies' actual claim records, to help them price the premiums to reflect the risk profile of the company. In other words, there is no need for them to presume that a company hiring disabled persons will face higher WICA claims.