Statute Details
- Title: Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020
- Full Title: Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020
- Act Code: WICA2019-S732-2020
- Type: Subsidiary Legislation (sl)
- Commencement Date: 2020-07-30
- Parts: N/A
- Key Sections: Section 2: In these Regulations —; Section 8: Where an employer is adjudged bankrupt on or after 1 September 2020 pursuant to a bankruptcy
- Related Legislation: Bankruptcy Act, Companies Act, Dissolution Act 2018, Insurance Act, Timeline Authorising Act
What Is This Legislation About?
The Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020 provide a set of transitional rules and exceptions to facilitate the implementation of the new Work Injury Compensation Act 2019 (WICA 2019). The regulations aim to ensure a smooth transition from the previous work injury compensation framework to the new one introduced by WICA 2019.
The key focus of these regulations is to address various scenarios and situations that may arise during the initial period after WICA 2019 comes into effect. This includes provisions related to insurance policies, claims processing, priority of debts, and the composition of offences under the repealed legislation.
Overall, the regulations seek to provide clarity and continuity for employers, insurers, and employees during the transition to the new work injury compensation regime in Singapore.
What Are the Key Provisions?
The Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020 contain several important provisions:
Deemed Approved Policies: Regulation 3 deems certain insurance policies that do not meet the full requirements of an "approved policy" under WICA 2019 to be considered approved policies for a limited period. This applies to policies that:
- Are not subject to prohibited conditions, exclusions or exceptions under the repealed legislation
- Have insurance cover commencing on or after 1 September 2020 but before 1 January 2021
- Have insurance cover ending before 1 January 2022
These "deemed approved policies" allow employers to maintain coverage during the transition period without immediately needing to obtain a fully compliant approved policy.
Deemed Compliance with Insurance Requirement: Regulation 4 deems employers to be in compliance with the insurance requirements under WICA 2019 if they maintain coverage under an approved policy, an interim policy (including a deemed approved policy), or an existing policy mentioned in the Act. This provides employers with flexibility in obtaining the necessary insurance during the initial years after WICA 2019 takes effect.
Interim Policies: The regulations define "interim policies" as those that either:
- Have insurance cover commencing before 1 January 2021 and ending before 1 January 2022
- Are deemed approved policies under Regulation 3
Importantly, Section 26(3)(a) and (b) of WICA 2019, which allow the Commissioner to void certain policies, do not apply to these interim policies (Regulation 5).
Claims Processing for Interim Policies: Regulation 6 states that all claims related to work injuries insured under an interim policy, regardless of whether the policy is issued by a designated insurer, are to be processed by the Commissioner under WICA 2019. This ensures a consistent claims handling process during the transition period.
References to Employer's Insurer: Regulation 7 clarifies that references to the "employer's insurer" in various sections of WICA 2019 also apply to the licensed insurer providing an interim policy. This ensures that the relevant provisions of the Act can be properly applied in the context of interim policies.
Priority of Debts: Regulation 8 addresses the priority of work injury compensation debts owed by employers who become bankrupt or are wound up. It provides that:
- For bankruptcies on or after 1 September 2020 pursuant to applications made before 30 July 2020, the priority of debts is based on the Bankruptcy Act as in force before 30 July 2020, rather than the Insolvency, Restructuring and Dissolution Act 2018.
- For company windings-up on or after 1 September 2020 pursuant to various applications made before 30 July 2020, the priority of debts is based on the Companies Act as in force before 30 July 2020, rather than the Insolvency, Restructuring and Dissolution Act 2018.
- For receiverships or property takeovers of employers (companies) before 30 July 2020, the priority of debts is based on the Companies Act as in force before 30 July 2020, rather than the Insolvency, Restructuring and Dissolution Act 2018.
These provisions ensure that the priority of work injury compensation debts is determined based on the laws in effect at the time the relevant insolvency or winding-up proceedings were initiated.
Composition of Offences: Regulation 9 provides that the provisions for compounding offences under the repealed Work Injury Compensation Act continue to apply to offences reasonably suspected to have been committed before 1 September 2020. This allows for the continued use of the existing compounding regime during the transition period.
How Is This Legislation Structured?
The Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020 are structured in a straightforward manner, with 9 main sections or regulations:
- Citation and commencement
- Definitions
- Deemed approved policy
- Deemed compliance with section 24(1) of Act
- Interim policy not to be void, etc.
- Commissioner to process claims under interim policy
- References to employer's insurer
- Priority of debts
- Composition of offences under repealed Act
The regulations provide clear and specific provisions to address the various transitional scenarios and issues that may arise during the implementation of the new WICA 2019 framework.
Who Does This Legislation Apply To?
The Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020 primarily apply to the following parties:
- Employers: The regulations provide employers with flexibility and clarity on the insurance requirements and claims processing during the transition period.
- Insurers: The regulations define the treatment of "interim policies" and the role of insurers in the claims handling process.
- Employees: The regulations ensure that employees' rights and access to work injury compensation are maintained during the transition to the new WICA 2019 framework.
- Regulatory Authorities: The regulations provide guidance to the Commissioner and other relevant authorities on the application of the new WICA 2019 legislation in various transitional scenarios.
Why Is This Legislation Important?
The Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020 play a crucial role in ensuring a smooth and seamless transition from the previous work injury compensation regime to the new WICA 2019 framework. By addressing a range of transitional issues and providing clear rules and exceptions, the regulations help to:
- Maintain continuity and stability in the work injury compensation system during the initial implementation phase of WICA 2019
- Provide clarity and certainty for employers, insurers, and employees on their rights, obligations, and processes under the new legislation
- Prevent disruptions or gaps in the coverage and claims handling for work-related injuries and illnesses
Ultimately, these regulations contribute to the effective and efficient implementation of the new WICA 2019 framework, ensuring that injured workers continue to receive the necessary compensation and support, while also providing a clear and predictable environment for employers and insurers to operate within.
Related Legislation
- Bankruptcy Act
- Companies Act
- Dissolution Act 2018
- Insurance Act
- Work Injury Compensation Act 2019
Source Documents
This article provides an overview of the Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.