'Is the ABS saying that Singapore banks do not insure themselves against liabilities?'

MR MICHAEL HWANG, president, Law Society of Singapore: 'I refer to the report, 'Forged cheques: Should banks be liable for losses?' (Oct 3), which quoted the Association of Banks in Singapore (ABS) as saying that insurance is not a practical answer to the problem of forged cheques, which I had raised in my article in the Law Gazette. My article did in fact mention that there is a standard insurance policy known as the Bankers Blanket Bond Policy, which protects banks from liabilities against forged cheques. Is the ABS saying that Singapore banks do not insure themselves against liabilities for forged cheques under this or any other policy?'

This article was first published in The Straits Times.