Construction Worker Can’t Double As Driver: Insurer

Source: The Straits Times, Saturday 31 March 2012

Under the Employment of Foreign Manpower Act, a work permit holder employed as a “construction worker” is barred from driving commercial vehicles on public roads in the course of work.

Many employers are using construction workers to multi tasks as drivers in vehicles plying to and from the construction sites in view to increase the productivity of the companies. Many employers also find it difficult to get Singaporeans to work as driver due to the long working hours.

However, it was reported that local insurer leader, NTUC Income has announced that with effective 1 April 2012, all their commerical vehicle insurance policies will not cover accidents involving a foreign construction worker who drive but the job scope does not include driving.

The insurer’s move reflects the official position of the authorities which stated that a work permit holder may not drive while working on public roads unless the occupation stated in the work permit involved driving.

It is understand that employers not in the construction sector also use workers, who are not designated to drive, to drive but Income’s clause affects only construction workers.

According to the news report, other insurers do not have this specific exclusion in their commercial vehicle insurance policies yet.

Our Thoughts:

  • With the implementation of such exclusion by the insurer leader, many other insurers are bound to follow.
  • The exclusion can hit small firms that use construction workers to double as drivers.
  • Many small firms are unable to hire more foreign workers binding the service sector quotas.

In TIB, we understand the difficulties faced by our clients following the move by the insurer leader. However, we pledge to give our best advice and risk management to all our clients.

If you need any advice on the coverage of your exisiting motor insurance, feel free to give us a call now.