Company and Employee Group Insurance
All businesses are held to the same requirements of corporate governance, employee welfare and liability.
Business owners, even of new start-up, must realise their employees and themselves are the greatest business assets to protect to ensure that the business have the capacity to sustain even in the sudden tragedy of the key person or employees.
Good healthcare keeps your employees happy, productive and committed. This is invaluable to your company’s growth and vitality.
- Employee Group Insurance: Inpatient, Outpatient, Wellness
- Foreign Workers’ Medical Insurance: S-Pass, Work Permit (Required by law)
- Work Injury Compensation (Required by law)
Employee Group Insurance
Group Insurance are customizable for SMCs/MNCs to cover the employees and their dependants.
You can protect your employees who work/resides in Singapore from the financial impact of unforeseen illness and accidents through a comprehensive employee insurance covers, giving them and their family a peace of mind to work with you.
Our trusted partner can help take care of your employees’ needs for:
- Protection against death, total and permanent disability, terminal illness and critical illness
- Protection against accidents
- Hospitalisation needs
- Quality outpatient treatments at designated general practitioners and specialist clinics.
- Traditional Chinese Medicine (TCM) treatments, and Dental and/or Maternity benefits.
Foreign Worker's Medical Insurance
If your company hires Work Permit and S-Pass Holders, you need to fulfil MOM’s medical insurance requirement to provide for each foreign worker a coverage of minimum S$15,000 annual limit per year for inpatient care and day surgery.
Work Injury Compensation Act Insurance
Under the Work Injury Compensation Act, employees are to be legally liable for injury sustained by your immediate employees. This includes all employees doing manual work regardless of salary level and for employees doing non-manual earning $1,600 or less a month. Work injury compensation insurance will cover you for the amounts you are legal liable to pay, limited to those covered in the Schedule, during the period of insurance arising out of and in the course of their employment by you in the Business.
For Key Person/Owners
Every company has key people upon which a large proportion of the business depends on and whose absence adversely affect the company. This can be the owner, director, CEO, the founders, or a key employee or two. Keyman insurance is a business purchase to inject funds into company when the insurance event happens. Without which, it leaves the company unprotected and exposes liabilities such as outstanding business loans, and an eventual fall of the company.
- Keyman Insurance
- Buy-sell Agreement
Keyman Insurance – Enabling Business Continuity
Key man insurance is life insurance on the key person in a business to ensure business survivorship by maintenance of the business’ liquidity position for operations when its key person dies prematurely or is disabled. It is owned by, funded by, and payable to the business entity.
Key person/s is/are the ones who:
- Accounts for large percentage of business profits (E.g. One who source for business through his extensive network)
- Have special knowledge or talent to the business that replacing him or her and training any replacement would be very costly and require a long period of time during which the company survival becomes threatened.
- Have valuable relationships, reputation, and high credit ratings essential for the management of the employees, key customers retention, bank/suppliers credit lines etc.
The premature death of this person often severely disrupt operations, lower employee morale and confidence of business partners; often leading to the immediate fall of the business. However, the proceeds of keyman insurance can be used upon the occurrence of the insurance event to maintain businesses’ liquidity position to keep the business operations running and assure customers and other stakeholders the assurance of a smooth transition
The payout essentially buys the company time to find a new person or to implement other strategies to save the business or, if necessary, pay off debts, distribute money to investors, pay severance to employees and close the business down in an orderly manner. In a tragic situation, key man insurance gives the company some options other than immediate bankruptcy.
Large corporations will benefit from key man coverage, and so do small businesses and even sole proprietorships. The smaller the business, the more highly dependent it usually is on 1 or 2 key people for its success and business survivorship get threatened when the 1 or 2 key people dies. For businesses that managed to survive this transition, sustainability is difficult as productivity and employment rates often drop significantly.
While some businesses believe their collaterals with the creditor are sufficient to meet short-term cash needs, the value of the collaterals often are not be realised at the intended price when the insurance event happens and company are hit by the loans outstanding. Once business faces liquidity issues, it can lead to forced selling and even more financial losses. Therefore, it is crucial to maintain liquidity position of the company.
A buy-sell agreement is an essential part of a business continuity plan. This will dictate the conditions for buying out the share of the deceased partner/shareholder of a company. A life and disability insurance can be effected to fund any buyout that occurs under the agreement.
Tax Treatment of Insurance Policy Premium
Insurance premium for keyman insurance may qualify for tax relief if it fits the conditions set by the Inland Revenue Authority of Singapore (IRAS).
Contact us at +65 8399 7762 for a non-obligatory assessment of your current business insurance coverage.