With effect from 1 April 2008, Work Injury Compensation Act (WICA) replaces the Workmen’s Compensation Act (WCA). The current scope only covers manual workers and non-manual workers earning less than $1,600 per month. The scope isnowwidened to cover non-manuals workers earning above $1,600 per month. Though buying insurance for this group of workers is not compulsary, employer is still liable for the compensation if a valid claim arises. The minimum and maximum to the claim for death and Permanent Incapacity for all workders are as follows:
So it makes sense for employer to purchase insurance for all workers to transfer the risk to insurers.