The principal limit is determined by all the following, except:
You need to get work injury compensation insurance for all employees doing manual work, as well as all employees earning $2,600 or less a month. Show
From 1 January 2021, all WIC insurance policies must be issued by a designated insurer, and must comply with MOM’s compulsory terms. Who needs to be insuredIf you are an employer, you are required to buy work injury compensation insurance for:
You must have insurance for both local and foreign employees. Failure to provide adequate insurance is an offence carrying a fine of up to $10,000 or jail of up to 12 months, or both. For other employees, you have the flexibility to decide whether to buy insurance for them. However, if those employees make a valid claim, you will have to compensate them regardless of whether they are insured. Choosing insurance coverageWhen you are buying or reviewing your company’s work injury compensation insurance coverage, do the following: For insurance policies that started before 1 January 2021Show
For insurance policies that start from 1 January 2021Show
Timely confirmation of WIC coverage will help avoid gaps of coverage, especially when work injury happened before a valid WIC insurance policy started, e.g. just after old WIC insurance policy has expired. Discontinue project WIC insuranceFrom 1 September 2020, you should not get new project WIC policies. There are WIC claims that are covered under both project WIC policy and employer’s WIC policy. Such duplicate coverage can lead to delays and disputes over who should compensate the injured employee or to reimburse the employer. Companies can potentially reduce insurance premiums by avoiding duplicate coverage. What is a project WIC policyA project WIC policy refers to the portions of project insurance policies that provide coverage for work injury sustained at a project site, or while doing work for a specific project. EmployersInsurersMain contractor / developers For employersYou must get WIC insurance for your employees, even if they are covered by project WIC policies. If your employees are only covered under a project WIC policy, you may be charged for non-insurance. This is because project WIC policies dont cover some instances of work injury, such as injury that occurred in company transport or while working outside the project site. For insurersYou can keep your existing project WIC policies. They will be considered double coverage because employers, i.e. sub-contractors, must get their own insurance. If there’s a claim, it will be made against the employer’s policy. You should not sell new project WIC policies from 1 September 2020. Employers must buy their own WIC insurance policy. We recommend that you work with developers to terminate the WIC portion of your existing project policies. For main contractor and developersYou are allowed to keep your existing project WIC policies. They will be considered double coverage as employers, i.e. sub-contractors, must get their own insurance. If there’s a claim, it will be made against the employer’s policy. You should not renew or buy new project WIC policies. Instead, you should ensure that each of your sub-contractors buy insurance to cover their own employees. You can also buy insurance to cover common law liabilities. Such insurance is not governed under WICA. How is the principal limit determined?The principal limit is the present value of the loan proceeds available to the borrower. It is determined at closing and increases each month by one-twelfth of the sum of the expected average mortgage interest rate ("expected rate") plus the monthly MIP rate.
What is the principal limit on a reverse mortgage?A reverse mortgage initial principal is the amount of money that a reverse mortgage borrower can receive from the loan. This limit typically will be significantly less than the home's appraised value. For example, a borrower with a $300,000 house might have an initial principal limit of $200,000.
What age is most important when calculating principal limits?Begin with the Relevant AGE
Older borrowers generally qualify for higher principal limits. While all borrowers must be 62 or older, non-borrowing spouses may be much younger.
What is principal limit growth?The principal limit growth rate is calculated by adding together the interest rate on your reverse mortgage and the mortgage insurance premium (MIP). For example, if the effective rate is 4.5%, and the mortgage insurance rate is 0.5%, then the principal limit would grow at a rate of 5%.
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