SINGAPORE – The Bank of Singapore has sacked up to 40 of its employees who are believed to be involved in cases of misuse of medical benefits. The BOS reportedly launched an internal investigation into employee medical claims related to one of its company panel clinics.

The bank's medical insurance policy allows workers to claim up to SG$10,500 (nearly US$7,760) for medical and dental expenses. Eligible items include blood tests, X-rays, vaccinations, outpatient consultations, and medication issued by a GP or specialist.

However, it was discovered that several members of the BOS staff had made claims for various ineligible items such as skincare products, supplements, and even a bird's nest.

Bank promises 'fair and robust' investigation process

In a report by The Straits Times, the BOS declined to comment on the details of the internal investigation. However, the bank stressed that it has a "fair and robust process" for such matters while promising all of the staff involved in the procedure would be given the time and opportunity to be heard.

“Should any wrongdoing be found after the conclusion of the investigation and necessary disciplinary inquiry, the appropriate disciplinary actions will be undertaken,” a BOS spokesperson said.

The same ST article said BOS employees involved in the misconduct were told to pay back the money for the false claims. Meanwhile, those in "more serious cases" face harsher penalties that could affect their bonuses. They are also excluded from the one-off cost-of-living support amounting to SG$1,000 (US$735) that the bank's parent company, the OCBC Group, provides to all junior staff.

Of the hundreds of bank workers included in the investigation, 40 have already been fired by the BOS, according to financial services careers website eFinancialCareers.com. The OCBC has also launched a separate investigation regarding the medical benefits misuse in the BOS.

Clinic denies link to medical claims misuse

While the Bank of Singapore refused to reveal the name of the company panel clinic involved in the investigation, the ST article named Drs Thompson & Thomson (RadLink Medicare), also known as DTT, as the establishment in question. DTT is under Fullerton Health.

In response to the accusations, DTT claimed that it "has no contractual arrangements with the BOS". The clinic also denied that it is on the bank’s panel of general practitioners.

Meanwhile, a spokesperson for Fullerton Health confirmed that while DTT is part of the group, the BOS is not one of its clients.

How to avoid misuse of employee benefits

As the talent war heats up, more companies rely on employee perks to attract people to their teams. Keeping a good eye on how staff use these benefits is what can prevent abuses from happening.

Robert Pound, Director of Benefits & Insurance at Health Risk Group Benefits, cautions employers against those who think benefits misuse is too small an issue to hurt the team.

"Many people see it as a victimless crime because it only hurts huge insurance giants. However, that is not an accurate perception," Pound said.

"Fraud results in benefits plans raising their premiums for employers and employees. Small to mid-size companies are impacted more than large companies."

Pound advises benefits managers to tread carefully: "Sometimes claims surge for a particular employee and upon research, managers might learn of a child or spouse with special needs, or the onset of a grave disease or rare illness." Special situations like these need to be considered.

"Other times," Pound said, "employees will make claims that are not related to their own health, with pharmaceuticals for example. These need to be traced and addressed to prevent further fraud."