Sterling Knight COO Blog

Cyber Security: How safe are you? (Wed, 01 Feb 2012)
Singapore .sg domains ranked 10th riskiest in the world
Cyber- is a prefix derived from “Cybernetic”. It is commonly used synonymous with e- or virtual, referring to “electronic” or computer related counterparts of a pre-existing product or service. In the first week of the New Year and Singapore alone has faced 02 major breaches in cyber security. On the 05 Jan 2012, hackers have broken into the National University of Singapore’s website and made staff usernames, domain information and hashed passwords public. The institution is Singapore’s “flagship university” and has more than 36,000 students from 100 countries, 16 campuses and thousands of staff. The hacker from an online group known as Team Intra used a SQL vulnerability to grab a database containing the information. The hackers alleged that the attack was not targeted and they had no intention of harm. It was simply a demonstration of how weak the security is. This was spurred on by an error message generated by probes of the website stating: “If you're trying to use the SQL error message to dig for juicy information, get lost.” SC Magazine informed the university about the hack. All affected passwords has been reset.1 The following day, 06 Jan 2012, DBS/POSB announced a security breach, where approximately SGD 500,000 has been stolen from 400 customers over the last 02 days.2 The average amount withdrawn is believed to be about SGD 1,000. DBS’s initial investigation identified that 02 DBS ATM in Bugis street were compromised over 03 days late November 2011 and informs that investigations are ongoing. DBS believed that the situation has been contained. A replacement card will be issued on the spot to any customer who believes their ATM or credit card has been compromised. All customers will be fully compensated for any false transactions within 24 hours.3 So how does such news affect one’s business or reputation? With regards to the recent major DBS security breach, The Straits Times RazorTV took to the streets to find out the public’s thoughts and views. http://www.razor.tv/site/servlet/segment/main/news/72748.html A research conducted by computer security expert, McAfee, at the end of 2009, placed Singapore-registered websites which end with “.sg”, as the 10th riskiest internet domains in the world. Surfing of these websites, according to McAfee, had a 9.1% chance of contracting some form of malware, placing the dangers Singapore-registered websites at a moderate level. McAfee highlighted Chinese pharmacy spam sites in Singapore as the main cause of risk.4 To read more on McAfee’s report on Mapping the Mal Web: http://us.mcafee.com/en-us/local/docs/Mapping_Mal_Web.pdf As the world and business today progressively becomes more and more reliant on computers and the world wide web to drive growth and expansion, what measures have your company put in place to ensure its cyber security?  References: 1 http://www.scmagazine.com.au/News/285906,singapore-university-hacked.aspx 2 http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_752603.html 3 http://www.asiaone.com/News/Latest+News/Singapore/Story/A1Story20120105-320153.html 4 http://singaporeaspirations.blogspot.com/2009/12/on-internet-security-in-singapore.html
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New Work Injury Compensation Bill Increases Statutory Liability of Employers (Tue, 29 Nov 2011)
New Work Injury Compensation Act increases statutory liability limits and liability for occupational diseases
The Ministry of Manpower recently published details of the Work Injury Compensation (Amendment) Bill 2011, which is scheduled to come into effect 1st July 2012. I summarize the main points we feel are relevant to employers in Singapore and their insurers. I also comment on best practice for insurance arrangements, given the new law. Salient points of the Bill which will impact employers: 1. Statutory no fault limits under the Work Injury Compensation Act will be increased to SGD170,000 for death and SGD280,000 for permanent incapacity. The current limits are SGD140,000 for death and SGD180,000 for permanent incapacity. This is to account for wage inflation since the last amendment in 2008. Also, in a similar vein, the medical expenses limit will be increased to SGD30,000 (currently SGD25,000). 2. Scope of Work Injury Compensation for occupational diseases extended. Specifically, work related injuries as a result of exposure to chemical or biological agents will automatically be compensable, including new diseases. Currently, only diseases listed in the Second Schedule of the Act (e.g. noise induced deafness) would be compensable and a new deadly flu strain, would not be compensable unless included in the Schedule. Under the new bill, the employee must still prove that he was more likely than not exposed at work, and not as a result of community spread. 3. Liability of Work Related Fights reduced. If the injury is due to a fight between employees at work (Ministry of Manpower receives about 20 such cases a year), this would not be compensable if the worker was an active party to the fight. Salient points which will impact insurers: 1. In situations where there are multiple policies involved, the employer's Work Injury Compensation insurer cannot deny liability on the basis of the existence of other insurance covering the employee. 2. An exception to this is that third parties will be allowed to pay compensation as long as they convey in writing to the Ministry of Manpower the intent to pay compensation on behalf of the employer's insurer, before the notice of assessment is issued. Best practice to ensure compliance with the new bill: 1. Ensure that appropriate Work Injury Compensation Insurance Act Insurance is taken up, and declare the full payroll of all employees,  including wages, bonuses, annual wage supplements, food and housing allowances, and overtime (but excluding travelling allowances and CPF contributions) to the insurers. 2. Use a dedicated Work Injury Compensation Insurance policy issued by a Singapore licensed insurance company. Do not use Personal Accident Insurance to cover Work Injury Compensation liability as personal accident policies do not cover occupational diseases. The New Bill's extension to new occupational diseases makes Personal Accident policies, which covers death or permanent major injury (only) due to accident totally inappropriate for covering Work Injury Compensation Liability.  The full speech on the amendment bill delivered in the Singapore Parliament on 21st November 2011 is available on the Ministry of Manpower's website.
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Sterling Knight Successfully Participates in the 2011 Global Internship Program (Tue, 29 Nov 2011)
Sterling Knight participates in developing local insurance talent
Our insurance broking firm is proud to announce our participation and completion in this year’s Global Internship Program (GIP) hosted by the General Insurance Association of Singapore and supported by the Monetary Authority of Singapore. The GIP is a unique, cross-disciplinary program that provides undergraduates from various backgrounds with valuable insights into the general insurance industry in Singapore. In the words of our COO, Lawrence Adam, “Our insurance broking firm has expanded with a greater international focus in recent years in the areas of corporate general insurance and employee benefits. Sterling Knight believes in developing local talent with an interest in insurance as a career path by providing mentorship, global exposure and learning opportunities. We believe that the GIP's pool of smart, driven and principled candidates and its structured selection and placement is a good match for Sterling Knight to further enhance our corporate values of integrity, trust and speed.” As the intern successfully recruited under the GIP, I consider myself extremely fortunate to be part of this irreplaceable experience working under the mentorship of a professional and highly capable team of colleagues. The three months I spent under the GIP has indeed cemented my perspective of the insurance industry and led me to a career that is both fulfilling and dynamic. GIP has given me exposure to the vibrant and exhilarating environment that is the general insurance industry, and I have not looked back ever since. I strongly urge interns from the ensuing batches to take that step and allow themselves to be inspired by the world of possibilities in this industry. For more information on the Global Internship Program, visit: http://www.gia.org.sg/gip/
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Compensation for Death on Work Trip under the Work Injury Compensation Act (Sun, 06 Nov 2011)
A death during a work related trip triggered compensation under the Work Injury Compensation Act
Under the Work Injury Compensation Act (Cap. 354) (WICA), “accidents arising out of and in the course of employment that occur outside Singapore are covered under the WICA where (a) the employee is ordinarily resident in Singapore; (b) the employer is based in Singapore; and (c) the employee is required in the course of his employment to work outside Singapore.” The article “Compensation for death on work trip” published by the Straits Times on 6 September 2011 demonstrates the contentious issues that typically arise when fatalities arise on work-related trips. As such, we recommend that corporations operating in Singapore be fully aware of their potential liability to their employees arising under the WICA. In this instance, the employee in question represented his firm at an anniversary dinner in Cambodia, but was found dead in his hotel room the next day. The lower court held that the death was not to be covered under WICA as there was no evidence to suggest the employee did actual work during the trip. The High Court ruled that the trip constituted employment, as it was sanctioned by the employer. The death was concluded to be an accident that happened in the course of employment, which made compensation payable under the WICA, thereby evidencing the government’s commitment to keep pace with changing realities as more Singaporeans travel abroad for work.
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Ministry of Manpower Announces Increased Number of Fall from Height Accidents (Sun, 06 Nov 2011)
Spike in accidents causes Ministry of Manpower to take action
A recent press release from the Ministry of Manpower cites an increased number of accidents (13 as at June 2011) resulting from falls from heights. Warning were issued to 150 contractors on this issue.
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