News
Cutoff from livelihood, shut out by insurance company
Forty-two year old Sarath Nandana, a coconut dealer, obtained a life insurance policy from a leading company for Rs. 200,000. It covered among other things, permanent disability due to accidents. Today, Nandana is a distraught man-after he lost is right hand in an accident. He has no insurance although he has a valid policy and he has no means of earning a livelihood either.
 Blow after blow: Nandana with his wife and children. Pic by Ranjith Perera |
 Nandana standing next to the machine that took his hand away. |
 The woman he saved |
On the morn of May 19, this year, Nandana along with a female assistance was working on a motorised coconut husker in the backyard of his home at Havana in the Dumalasooriya Police area. Without any warning the top garb of the woman got entangled to the razor sharp blades of the husker and within seconds her entire arm would have been dragged into it if not for the timely intervention of Nandana.
The woman was unhurt but it was not the same story for this self-employed man who also operates a van transport service for schoolchildren in his village.
In a matter of seconds the machine swallowed up Nandana’s right hand splattering the shed with bloodied flesh and tissue before the female assistance could turn off the motor.
Today the machine lies silent in the makeshift shed while Nandana struggles to make a living to support his wife and two children.
“This is a remote village and people are very superstitious and they are convinced that the accident was a bad omen. I cannot find a single hired hand to work the husker and parents are reluctant to let their children ride in my van either,” Nandana told the Sunday Times.
Nandana is now facing a double blow with the insurance company that sold a life policy to him refusing to pay any compensation citing a negligeble default in his declaration.
“It is there in black and white that compensation of Rs. 200,000 plus is due in case of semi or permanent disability caused by an accident, but officials at the insurance house in Wennapuwa think otherwise,” Nandana said.
He said he didn’t owe the insurance company any dues up to the time of the incident having paid the monthly premiums without delay.
He charged that even the agent who sold the policy passed the buck whenever he raises the matter. “This is the same agent who took 18 days to make a home visit after the accident and made some silly utterances and the story ended there,” a furious Nandana added.
He said he had also written to the Union Assurance, the insurance company, but had received no response so far while officials at the Wennappuwa branch claimed they were awaiting a response from the headoffice in Colombo.
Jude Santha, the insurance agent who sold the policy to Nandana, said there was little he could do although he sympathised with Nandana’s plight, since the matter had to be sorted out with company officials in Wennappuwa or Colombo.
Meanwhile, Union Assurance General Manager Jayeseeli Dissanayake said Nandana did not qualify for any compensation since he had made a false endorsement in his original declaration. “The policy holder had failed to state that there was a certain degree of risk in his work and that is the reason we have knocked him off the compensation list,” she said.
She added that even an appeal by the vicitm would not force the company to change its stand. “As far has we are concerned the matter is closed,” Ms. Dissanayake added.
She, however, conceded that the company did not carry out a check on the man’s original declaration before selling the policy saying it was done on trust and good faith between the firm and the client.
“That is the standard procedure in the insurance industry,” she said.
Meanwhile, the Sri Lanka Insurance Ombudsman said it would take up the case on behalf of the policy holder provided a complaint giving all the details was submitted.
“We usually work with both parties on a case-by-case basis and try to reach a fair settlement. The Ombudsman handles some 40 to 50 complaints every month and the majority is the non-payment of claims and delays on the part of the insurance companies,” SLIO Spokesperson Sabina Ekanayake said.
Explaining the usual procedure, she said following a complaint from either party a date would be fixed for an inquiry where all stake holders were required to be present. Thereafter the SLIO would look into the credibility of the claims and reach an amicable settlement after investigations and consultations with experts.
The SLIO is appointed by the Insurance Association of Sri Lanka (IASL) with the concurrence of the Insurance Board of Sri Lanka (IBSL) , the regulatory body for the insurance industry in the country.
Follow @timesonlinelk
Related Posts:
Lifetime achievement Asian insurance award for Chandra SchaffterMr Schaffter receiving the award
Insurance claims on the rise owing to growing traffic in ColomboInsurance claims in Colombo are on the rise owing to heavy traffic in the city, an insurance specialist says. "The severity ...
Ceylinco Insurance posts impressive half yearly resultsCeylinco Insurance said this week that it “has declared imposing results for the first half of 2012”. In a media ...
Laugfs launches insurance policy product for customersLaugfs Holdings Limited (Laugfs) through their supermarket chain has partnered with international insurance firm Chartis Insurance to offer accident and ...
IBSL seeks Indian assistance to address industry gapsThe Insurance Board of Sri Lanka (IBSL) is planning to get assistance from its Indian counterpart in a bid to ...