With effect from 1 January 2017, the Market Agreement for WIC in relation to Project Insurance (“the Undertaking”) will be canceled with respect to all accidents that occur on or after 1 January 2017.
In 2012, GIA organized the Undertaking, signed by 39 GIA members, to direct project site WIC and Common Law claims to be covered under the project’s WIC policy.
Cancellation Of Undertaking On Project And Annual Policies
Signatories to the Undertaking have been encountering difficulties adhering to its requirements including identifying project insurers. Statistically, only an average of 6.6% of WIC claims could identify project insurers over the period 2014 – 2016.
Notwithstanding GIA’s efforts to enforce the Undertaking amongst projects, MOM’s position is that Section 23 WICA makes clear the liability of the employer’s insurer to pay WIC to an injured worker and this rule prevails even where there are multiple WIC insurance policies in force.
The failure of the Undertaking to achieve its aim has led the GIA to cancel the Undertaking with effect from 1 January 2017.
The realistic impact of this cancellation is that most project-related WIC claims will fall under the annual WIC policies instead of the project WIC policies.
Companies should conduct an analysis of annual WIC policy portfolio to determine next constructive steps in regard to premium rates, suitable terms and conditions and other appropriate actions.
The first step is to ensure that the annual wage roll of all employees must be declared in full when effecting the annual WIC policy.
If you want to review your existing WICA policy’s premium and terms, you can fill in your request below for a non-obligatory quotation.