Latest news with #WorkInjuryCompensationAct
New Paper
01-08-2025
- Business
- New Paper
Work injury at Sumo Salad covered under valid insurance policy: MOM
The Ministry of Manpower (MOM) said salad shop Sumo Salad was covered by a valid insurance policy when an alleged work injury involving a staff member occurred on June 6. The salad shop's owner, the late Ms Jane Lee, had submitted an incident report to MOM soon after. As at June 27, the company had been reimbursed by its insurer for the medical expenses and medical leave wages it had claimed, MOM told reporters during a briefing on Aug 1. When asked whether there were outstanding claims after June 27, the ministry said the claims process has not concluded as investigations are still ongoing. Before finalising a claim, doctors must assess the extent of an injured worker's incapacity, which determines the amount of lump-sum compensation for the worker. MOM added that it has not received any indication from the insurer of potential fraud, but emphasised that the possibility cannot be ruled out. Ms Lee died on July 19, a day after she posted two Facebook posts alleging that a former staff member had staged a fall in an attempt to claim workplace injury compensation. She believed her company was targeted because of "an unfortunate gap" in insurance coverage. Ms Lee also urged MOM and the police to investigate the case thoroughly, as she believed it was a premeditated scheme involving the ex-employee's husband and possibly a law firm. The incident has sparked wider discussions about challenges faced by small business owners in Singapore, and the need for stronger safeguards against abuses of the Work Injury Compensation Act (Wica). MOM said the worker involved in this case is still in Singapore on a Special Pass, which is typically issued temporarily to those whose work permits have been cancelled and are awaiting departure, or for specific purposes such as assisting with investigation and attending court. MOM said insurers had referred about 12 claims a year for investigation into potential fraud. Over the last five years, the ministry had prosecuted about two workers a year for fraudulent claims. These workers were jailed between three and 13 weeks. The maximum penalty is a jail term of up to 12 months, or a $15,000 fine, or both. Employers who fail to buy insurance for their manual workers, and non-manual workers earning $2,600 a month or less, may be fined up to $10,000, jailed up to 12 months, or both. In the last five years, MOM had prosecuted about two employers a year for such offences. MOM said the ministry conducts audit checks on employers for their Wica coverage. "When we detect they do not have any insurance, we will nudge them," an MOM spokesman said, adding that a grace period is given to employers to buy or renew insurance. MOM added that over the past three years, 94 per cent of all work injury claims were paid by insurers. For the remaining 6 per cent, most were paid directly by employers exempted from buying the Workplace Injury Compensation (WIC) insurance. Generally, employers with insurance coverage can be reimbursed for medical expenses as well as wages paid to workers on medical leave. The insurer will make lump sum compensations to workers or their family in the event of death, permanent incapacity or incapacity that remains six months post-injury, based on doctors' assessments. If there are disputes on the degree of permanent incapacity awarded, the case will be referred to the WIC Medical Board for independent reassessment.
Online Citizen
01-08-2025
- Business
- Online Citizen
MOM: Sumo Salad employer fully reimbursed by insurer; no fraud found so far in work injury claim
SINGAPORE: The Ministry of Manpower (MOM) confirmed on 1 August 2025 that the employer involved in the Sumo Salad workplace injury case has been fully reimbursed by their insurer. The reimbursement, which covers medical bills and medical leave wages submitted up to that point, was completed on 26 and 27 June. Speaking at a media briefing on the Work Injury Compensation Act (WICA), MOM added that it had not received any indication from the insurer that fraud was involved. However, a ministry spokesperson clarified that this does not eliminate the possibility of fraud, as investigations are still ongoing. 'We have not received any indication from the insurer that there is fraud. But that is different from saying that there is no fraud, because we are investigating,' the spokesperson stated. The update comes amid heightened public scrutiny following the death of Jane Lee, the owner of Sumo Salad, who posted online allegations of a fraudulent work injury claim shortly before her passing. Lee alleged in Facebook posts on 18 July that a foreign worker had staged a fall to claim compensation from her business, operated under the name EatGreen. She said her company had become the target of what she believed to be a 'fraudulent scheme,' and lamented a gap in their insurance coverage at the time. Jane Lee died on 19 July. The Singapore Police Force is conducting an investigation into her unnatural death. According to MOM, the work injury incident was reported to have occurred on 6 June. The employer subsequently filed a work injury report. MOM said the employer held a valid insurance policy at the time of the incident. While confirming the employer's insurance status, MOM declined to name the insurer, citing ongoing investigations. The ministry also stated that the work injury claims process in this case has not yet concluded. Asked about the current status of the foreign worker involved in the claim, MOM said it does not usually disclose individual employment statuses. However, it noted that in certain cases under investigation, special passes may be issued to legalise a worker's stay in Singapore during the process. Jane Lee passed away after raising alarm over alleged foreign worker injury claim scam Jane Lee, a mother of two in her 40s, alleged before her death that the worker had staged the incident just two days before the end of her employment contract. In one of her final social media posts, she claimed that the worker's husband and possibly a law firm had collaborated in orchestrating the event. She warned that small businesses with incomplete insurance cover could be particularly vulnerable to such tactics, which she believed were meant to instil fear and extort money. Lee also voiced concerns that workers could exaggerate injuries or falsely claim permanent disabilities in order to obtain higher payouts. Her posts called on authorities to investigate the case thoroughly to protect small business owners facing similar risks. The incident has since triggered an outpouring of public sympathy and renewed calls for more robust safeguards against fraudulent claims under WICA. Many small business owners have echoed Lee's concerns and urged MOM to tighten checks on suspicious claims, while ensuring legitimate injuries continue to receive fair compensation. MOM: 28,500 work injury claims filed annually; about 12 cases a year flagged for suspected fraud During the same media briefing, MOM provided broader context about work injury compensation in Singapore. It revealed that approximately 28,500 work injury claims are filed annually. Out of these, insurers and employers pay compensation for around 26,800 cases each year. MOM said that insurers refer roughly 12 cases annually to the ministry for investigation into potential fraud. The ministry stressed that WICA is designed to balance the financial liabilities of employers with the social protections needed by injured workers. It explained that the Act imposes compensation caps to protect employers from sudden large financial burdens while providing workers with a quicker, low-cost path to compensation. Under WICA, employers are required to purchase work injury insurance for all manual workers, regardless of salary. Non-manual workers earning S$2,600 or less a month must also be insured, as must all platform workers through their operators. The Act covers medical expenses, medical leave wages, and lump sum compensation for permanent incapacity or death. Over the past three years, 94 per cent of WICA claims were paid out by insurers. The remaining 6 per cent were generally paid directly by employers who are exempt from mandatory insurance. MOM also highlighted several safeguards built into the system to prevent abuse. These include assessments by insurers, who act as gatekeepers, and mandatory medical evaluations, which are tightly regulated. Additionally, all parties involved in a claim, including employers, workers and insurers, are allowed to raise objections to any aspect of the process.
Straits Times
01-08-2025
- Business
- Straits Times
Sumo Salad had valid insurance coverage for work injury claims: MOM
Sign up now: Get ST's newsletters delivered to your inbox Ms Jane Lee died a day after posting two Facebook messages on July 18, alleging that a former staff member had faked a fall just two days before the end of her contract. SINGAPORE – The Ministry of Manpower (MOM) said salad shop Sumo Salad was covered by a valid insurance policy when an alleged work injury involving a staff member occurred on June 6. The salad shop's owner, the late Ms Jane Lee, had submitted an incident report to MOM soon after. As at June 27, the company had been reimbursed by its insurer for the medical expenses and medical leave wages it had claimed, MOM told reporters during a briefing on Aug 1. When asked whether there were outstanding claims after June 27, the ministry said the claims process has not concluded as investigations are still ongoing . Before finalising a claim, doctors must assess the extent of an injured worker's incapacity, which determines the amount of lump-sum compensation for the worker. MOM added that it has not received any indication from the insurer of potential fraud, but emphasised that the possibility cannot be ruled out. Ms Lee died on July 19, a day after she posted two Facebook posts alleging that a former staff member had staged a fall in an attempt to claim workplace injury compensation. She believed her company was targeted because of 'an unfortunate gap' in insurance coverage. Top stories Swipe. Select. Stay informed. Tech Reporting suspected advanced cyber attacks will provide a defence framework: Shanmugam Singapore Tanjong Katong sinkhole: Road will progressively open to motorists from Aug 2 noon World Trump modifies reciprocal tariffs ahead of deadline; rate on Singapore likely to remain at 10% Business Singapore's US tariff rate stays at 10%, but the Republic is not out of the woods yet Singapore 5 women face capital charges after they were allegedly found with nearly 27kg of cocaine Asia Australia to force Google to conduct age checks in world-first rules for search engines Singapore PM Wong to deliver National Day message on Aug 8 Ms Lee also urged MOM and the police to investigate the case thoroughly, as she believed it was a premeditated scheme involving the ex-employee's husband and possibly a law firm. The incident has sparked wider discussions about challenges faced by small business owners in Singapore, and the need for stronger safeguards against abuses of the Work Injury Compensation Act (Wica). MOM said the worker involved in this case is still in Singapore on a Special Pass, which is typically issued temporarily to those whose work permits have been cancelled and are awaiting departure, or for specific purposes such as assisting with investigation and attending court. MOM said insurers had referred about 12 claims a year for investigation into potential fraud. Over the last five years, the ministry had prosecuted about two workers a year for fraudulent claims . These workers were jailed between three and 13 weeks. The maximum penalty is a jail term of up to 12 months, or a $15,000 fine, or both. Employers who fail to buy insurance for their manual workers, and non-manual workers earning $2,600 a month or less, may be fined up to $10,000, jailed up to 12 months, or both. In the last five years, MOM had prosecuted about two employers a year for such offences. MOM said the ministry conducts audit checks on employers for their Wica coverage. 'When we detect they do not have any insurance, we will nudge them,' an MOM spokesman said, adding that a grace period is given to employers to buy or renew insurance. MOM added that over the past three years, 94 per cent of all work injury claims were paid by insurers. For the remaining 6 per cent, most were paid directly by employers exempted from buying the Workplace Injury Compensation (WIC) insurance. Generally, employers with insurance coverage can be reimbursed for medical expenses as well as wages paid to workers on medical leave. The insurer will make lump sum compensations to workers or their family in the event of death, permanent incapacity or incapacity that remains six months post-injury, based on doctors' assessments. If there are disputes on the degree of permanent incapacity awarded, the case will be referred to the WIC Medical Board for independent reassessment.
AsiaOne
01-08-2025
- Business
- AsiaOne
Safeguards in place to deter fraudulent injury claims at workplace: MOM, Singapore News
The Ministry of Manpower (MOM) has safeguards in place to prevent fraudulent claims under the Work Injury Compensation Act (Wica). At a media briefing on Friday (Aug 1), the ministry said that Wica is in place to balance the interest of employers and workers. All employers are required to purchase Work Injury Compensation (WIC) insurance under MOM regulations, for all manual workers regardless of salary and non-manual workers less than or equal to $2,600 per month. Under Wica, employees can make claims for medical leave wages, medical expenses and lump sum compensation in the case of permanent incapacity, current incapacity or death. On average, 28,500 WIC claims are made each year, of which around 26,800 are paid out, the ministry said. It said that the median time taken to process a claim is about six months, with around 95 per cent of claims being resolved within one year after being filed. 3 safeguards in place to protect against fraud MOM said that there are three safeguards in place, which separately come under the purview of insurers, doctors and the ministry. Insurers are the first line of defence in detecting WIC fraud, who typically engage loss adjustors to investigate suspicious claims, which will be subsequently escalated to the ministry. Doctors are the second line of defence, and refer to "prescribed and detailed guidelines for assessment of degree of permanent incapacity". In any case of disputes on the degree of permanent incapacity awarded, the parties can object, and the case can be referred to the WIC Medical Board for independent reassessment. Additionally, all parties are able to raise objections to WIC claims during the process, which will be referred to MOM for adjudication. Of all claims made, MOM gets objections to less than 3 per cent. On top of the three safeguards, the ministry has compensation caps in place to limit employer's financial liability. Around 12 claims per year investigated for fraud Both errant employers who fail to fulfill their Wica obligations and workers who make fraudulent claims will be prosecuted under MOM regulations. WIC insurance is meant to "protect employers against sudden large payouts due to work injuries", and employers who fail to fulfill their Wica obligations will face fines of up to $15,000, jail terms of up to 12 months, or both. Workers found making fraudulent claims may be fined up to $15,000 or jailed up to 12 months, or both. According to MOM, insurers refer about 12 claims per year for investigation into potential WIC fraud, with around two workers being prosecuted per year after the relevant investigations. Sumo Salad case still under investigation MOM also provided an update regarding the recent case involving Jane Lee, the owner of Sumo Salad, who died on July 19 after making two Facebook posts alleging that an employee had faked an injury to claim workplace injury compensation from the company. The ministry said the accident occurred on June 6, and that Sumo Salad had submitted a work injury incident report to it, adding that the firm was "covered by a valid insurance policy", and was fully reimbursed on June 26 and June 27 for the work injury incident reported. According to MOM, the case is still under investigation and that the claims process has not been completed. [[nid:720463]]
CNA
25-07-2025
- CNA
Singapore private investigators see spike in work injury claim cases; NGOs warn against generalisations
SINGAPORE: Demand is rising among private investigation firms in Singapore, for a different type of surveillance: To verify whether work injury claimants have genuine injuries. While fraudulent work injury claims have been put under the spotlight in recent days, non-government organisations told CNA that such cases were extremely rare among low-wage migrant workers. They urged against making sweeping generalisations, pointing out they have witnessed instances where injured workers were unable to get fair compensation. The issue was sparked by the death of Ms Jane Lee, owner of local business Sumo Salad, who had published Facebook posts about a foreign employee who allegedly filed a false work injury claim to get compensation. The Manpower Ministry (MOM) subsequently said it had been in communication with Ms Lee before her death, and that investigations into the claim were ongoing. The worker involved was covered under the Work Injury Compensation Act (WICA), and MOM said it was working with the employee's insurer to "assess the validity of the case". On Thursday (Jul 24), Minister of State for Manpower Dinesh Vasu Dash reiterated that MOM was probing the matter and working with the insurer. He said that in cases of "egregious" behaviour by employees, action has to be taken; but added it was also important to find incentives for workers and employers "to model the right behaviour" for their health, safety and well-being. Last year, 26,843 work injury claims were awarded. The total compensation payout was S$138.2 million (US$108.4 million). CNA has asked MOM for data on the number of fraudulent work injury claims detected, and how officers go about verifying work injury claims. CNA has also reached out to multiple insurers for more information on how they typically verify work injury claims. MORE ENQUIRIES, MORE CASES Three private investigation firms – Asia Top Investigation, Detective Don PI and Eyes Private Investigator – told CNA they have recorded a surge in requests to investigate potentially fraudulent work claims. They said the cases come mostly from the construction sector, with some in the food-and-beverage and service-related industries. Mr Ivan Tan, operations manager and investigator at Asia Top Investigation, said his firm dealt with 15 such cases last year. Five years ago, the agency would get about five enquiries a year. Last year, they received two to three enquiries a month. Mark (not his real name), the director of Eyes Private Investigator, said that in the past one-and-a-half years, his firm has received four to five enquiries every week and taken on an average of two cases a week. Previously, they used to take up one to two cases every fortnight. Four out of nine investigators at Eyes focus on work injury cases. Mark estimated that he alone has handled 50 to 60 such cases, which he said mostly involved foreign workers. The private investigators CNA spoke to said their work can take anywhere from a day to two weeks. Mr Tan from Asia Top charges S$1,800 for up to eight hours of surveillance on weekdays, and S$2,100 on weekends. Two licensed private investigators will follow the subject to gather photo and video evidence of his or her activities, and produce a report for the client which can also be submitted to court as evidence, said Mr Tan. Investigators are sometimes also called to testify in court to back up their report. "We don't try to force the narrative into one direction. However, if let's say the worker indeed is faking injury, what we do is we try to focus on that specific body part which she claims is injured and is not functioning well," he said. One case he worked on involved a dishwasher with a finger injury who was found moonlighting as a waitress. "Her fingers are working fine because (she) can serve food, (she) can carry plates," said Mr Tan. Then there was an administrative worker in a private clinic who resigned and took extended medical leave citing "different ailments". But investigators found her working for her employer's competitor during her notice period. According to Mr Tan, in all 15 cases his firm investigated last year, there was evidence that the injuries were feigned. For Mark, he recalled one to three cases out of his firm's entire portfolio where no such evidence was found. The investigators said that after submitting their reports, they typically do not keep track of cases all the way to resolution. But Mark has received feedback from some clients, of employees withdrawing their work injury claims after being confronted with the evidence. Lawyer Ray Louis told CNA he once advised an employer in a dispute with a cleaner, who filed a claim for a back injury from a fall. An investigator followed her and obtained evidence of her moving around 'normally'. Mr Louis said that while this employer still could not prove that the worker's injury was fake, he was able to show that it was not as serious as she had made it out to be. 'It forced the claimant to settle at a lower amount,' said the lawyer. CNA has also contacted business associations to ask if fraudulent work injury claims are an issue among its members. The last known case to be publicised was in 2021, when two foreign workers were convicted for making fraudulent WICA claims in 2019. According to an MOM release, one was found to have staged a fall, while the other said his injury was sustained at work when it did not. "A REAL DROP IN THE OCEAN" Under WICA, employees in Singapore who are injured in work accidents or suffer diseases due to work can make claims without having to file a civil suit under common law. According to MOM, one remains eligible to claim for compensation even if he or she no longer works for the employer or their work pass is cancelled. Workers can claim medical leave wages; medical expenses including hospital bills; and a lump sum compensation for permanent incapacity, current incapacity or death. Speaking to CNA, Transient Workers Count 2 (TWC2) vice-president Alex Au said the NGO sees more than a thousand injury cases a year, with no more than 'one or two' cases where they have doubts over the veracity of the claim. 'We are talking about a real drop in the ocean,' he said. If anything, low-wage migrant workers in particular often find that the 'balance of proof' is stacked against them when they suffer injuries at the workplace, said Mr Au. This could be due to employers who "control" various forms of evidence which could have been used by workers to make legitimate claims, he added. As a result, the subsequent insurance report would state that the injured worker's account was not corroborated by any evidence. "These are the reasons why we think that the percentage of invalid claims is probably higher than really fraudulent claim(s)," said Mr Au. Ms Dipa Swaminathan, founder of charity and migrant worker advocacy group ItsRainingRaincoats, warned against painting all workers with the same 'tainted brush'. 'Every single time they have an injury … if there's going to be an assumption that they're making it up, can you imagine how hard their life is?' she said. 'We have seen the other side of the story, where even for genuine workplace injuries, they're not able to get any compensation.' Ms Swaminathan said her organisation has never seen a fraudulent case in 10 years of working with migrant workers. Former Nominated Member of Parliament Anthea Ong, a council member of a community initiative helping migrant workers pay for critical illness treatments not covered by their mandatory insurance, was concerned about the potential fallout from WICA coming under the spotlight. 'If every employer is now going to be a little bit suspicious and don't act on it when their workers have met with an accident at the workplace, that might mean that those workers who really, genuinely need immediate emergency attention may not get that and that could put their lives at risk,' she said.
