General insurers turn to Govt as workplace injury claims rise

Jan 23, 2007

General insurers turn to Govt as workplace injury claims rise

They seek increase in benefit limits under Workmen's Compensation Act

By Lorna Tan, Finance Correspondent

A SPATE of costly lawsuits by construction workers seeking bumper payouts has prompted general insurers to seek government action.

General insurers have asked the Ministry of Manpower to increase the benefit limits stipulated under the Workmen's Compensation Act. The limits have not been reviewed since 1995.

Insurers believe that if payouts under the Act are bumped up to be in line with much bigger common law payouts, then this costly litigation would be discouraged.

The move by the General Insurance Association (GIA) comes amid rising workmen claims which have plunged the already unprofitable business of insuring building firms deeper into the red.

On Saturday, The Straits Times reported that more workers are turning to lawyers to sue employers for work-related injuries instead of claiming under the Act.

This is because workers who succeed in suing their employer or main contractor under common law for breaching safety regulations stand to get higher payouts than they could receive under the Act.

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