Singapore Insurance Guide
At-a-glance
- •The only employee-related mandatory covers for general businesses are WICI and, where relevant, foreign-worker medical insurance.
- •Motor TPL is compulsory for any company vehicle.
- •Active-mobility rider liability is sector-specific but critical for delivery platforms.
- •Certain professions (lawyers, estate agents, insurance intermediaries, etc.) have their own compulsory professional-indemnity schemes.
- •Fire insurance is mandatory only where a Management Corporation exists (e.g., SMEs that own strata units should confirm the MCST policy and any top-ups needed for contents).
- •Everything else—such as public-liability, contractors' all-risk, or group health for local staff—is recommended or contractual, but not a blanket legal requirement.
Mandatory & Profession-Specific Business Insurance Requirements
Comprehensive overview of insurance requirements for businesses operating in Singapore
| Insurance Type | Who Must Insure | Key Legal Basis & Authority | Minimum Coverage | Penalties for Non-compliance |
|---|---|---|---|---|
| Work Injury Compensation Insurance (WICI) | Every employer for all manual workers and non-manual workers earning ≤ S$2,600 / month | Work Injury Compensation Act (WICA); Ministry of Manpower (MOM)Official Source | 1 employee; policy must be placed with a designated insurer | Fine ≤ S$10k or ≤ 12 months' jail (or both); employer still liable for compensation |
| Foreign-Worker Medical Insurance | Employers of Work-Permit & S-Pass holders (all sectors) | Employment of Foreign Manpower (Work Pass) Regulations; MOMOfficial Source | ≥ S$60k inpatient/day-surgery cover per worker per year (policies from 1 Jul 2023) | Work-pass issue/renewal refused; fines, possible revocation of passes |
| Motor-Vehicle Third-Party Liability | Any business that owns or operates a motor vehicle (cars, vans, trucks, etc.) | Motor Vehicles (Third-Party Risks & Compensation) Act; Land Transport Authority (LTA)Official Source | Vehicle must be insured for entire road-tax period | Uninsured vehicle cannot be registered/renewed; driving uninsured is an offence (fines, liability) |
| Third-Party Liability for Active-Mobility Riders | Businesses that employ or contract riders using e-scooters / PMDs on public paths (e.g., food & parcel delivery) | Active Mobility Act & LTA directive (Dec 2020)Official Source | Applies regardless of headcount if riders use PMDs on public paths | Regulatory fines; possible suspension of operating licence for device-sharing firms |
| Professional Indemnity – Lawyers | Every practising lawyer (law firms of any size) | Legal Profession Act §75A; Law Society's Compulsory PII SchemeOfficial Source | Must renew annually before Practising Certificate is issued | PC will not be issued; practising without PC is illegal |
| Professional Indemnity – Estate Agents / Salespersons | All licensed estate-agency firms & individual salespersons | Estate Agents Act 2010; Council for Estate Agencies (CEA)Official Source | Continuous cover required for licence / registration | Licence or registration refused or cancelled; practising unlicensed is an offence |
| Fire Insurance for Strata-Titled Buildings | The Management Corporation (MCST) of any strata development (commercial, industrial, mixed-use) | Building Maintenance & Strata Management Act (BMSMA); overseen by BCAOfficial Source | MCST must insure entire building's common property for fire & specified perils | MCST may be fined; liable for reinstatement costs if uninsured loss occurs |
Insurance Regulators
Monetary Authority of Singapore (MAS)
MAS is Singapore's central bank and the main financial regulator overseeing the insurance industry. It administers the Insurance Act 1966, which governs the licensing and regulation of insurance businesses, insurers, and insurance intermediaries in Singapore.
All insurance companies and brokers operating in Singapore must be approved by MAS and comply with MAS regulations. While MAS sets the regulatory framework (ensuring insurers remain solvent and treat policyholders fairly), it also provides general information on insurance oversight on its website.
Ministry of Manpower (MOM)
MOM is the authority that enforces labor laws and workplace safety, including mandatory insurance for employees. Two key insurance obligations fall under MOM's purview:
- Work Injury Compensation Insurance (WICA): Mandatory for all manual workers and non-manual employees earning $2,600 or below per month. Ensures that if any worker is injured or falls ill due to work, the insurance will pay for medical leave wages, treatment costs, and compensation.
- Medical Insurance for Foreign Workers: Employers must purchase medical insurance for each foreign employee on Work Permits or S Passes with minimum coverage of S$60,000 annually for inpatient care and day surgery.
Land Transport Authority (LTA)
LTA is the regulator for road and transportation matters, and it enforces Singapore's motor vehicle insurance requirements. Every motor vehicle driven on Singapore roads is required by law to have valid motor insurance at all times.
Before a vehicle can be licensed and its road tax renewed, it must be insured for at least third-party liability risks. The insurance policy must cover third-party death and bodily injury as required under the Motor Vehicles (Third-Party Risks and Compensation) Act.
Enterprise Singapore and GoBusiness Portal
Enterprise Singapore is the government agency dedicated to supporting Singapore SMEs, while GoBusiness is a comprehensive portal that consolidates licensing, compliance and advisory information for businesses.
These platforms provide guidance on mandatory insurance requirements and direct businesses to the relevant regulatory information from MAS, MOM, LTA, and other agencies. They serve as navigational tools to help SMEs understand and meet their insurance obligations.
Risks of Being Uninsured
Work Injury Compensation Insurance (WICI)
Fines up to S$10,000 and/or imprisonment up to 12 months. Even if uninsured, employers remain fully liable for compensation payments to injured workers.
Foreign Worker Medical Insurance
Work pass applications or renewals will be rejected. Existing passes may be revoked, forcing businesses to lose critical staff and face disruption.
Motor Vehicle Insurance
Vehicles cannot be registered or have road tax renewed. Driving uninsured vehicles exposes the business to unlimited liability for third-party injuries.
Professional Indemnity (Where Required)
Professional licenses will not be issued or renewed, effectively preventing legal operation. Practicing without proper licensing can result in severe penalties.
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