How WICA premiums are worked out: wages, job class and claims history
What does the insurer look at?
The starting point is wageroll: the total annual wages for each occupation group. The insurer applies a rate to each group according to how hazardous the work is.
Construction, marine, manufacturing and logistics roles carry higher rates than clerical roles because injuries are more frequent and more serious.
| Factor | Effect |
|---|---|
| Declared wages by occupation | The base the rate is applied to |
| Type of work | Higher hazard, higher rate |
| Claims in recent years | Frequent or large claims raise the rate |
| Safety record and controls | Can support better terms at renewal |
Why do declared wages matter?
If the wages declared are lower than actual wages, the policy may not respond fully to a claim, and the insurer can adjust the premium at the end of the period. Declare the full wageroll and update it when headcount changes.
Can the cover be wider than the law requires?
Yes. Many employers insure all employees, including non-manual staff above S$2,600 a month, and add employer's liability cover for claims made under common law rather than under WICA.
What should be ready before asking for a quote?
Headcount and annual wages by occupation, a description of the work and sites, and a claims history for the past three to five years. The more complete the file, the more insurers will quote.
Frequently asked questions
Is the WICA premium fixed for the year?
The premium is based on estimated wages. Some policies adjust at the end of the year to actual wages.
Does a past claim stop a company getting cover?
Not usually. It affects the rate and terms; the full history should still be disclosed.
Related cover
Sources
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.