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.