AAI introduces invaluable insurance innovation for state pensioners
Sri Lankan state pensioners will be brought under the fold of a new insurance scheme in a new initiative launched by Asian Alliance Insurance, together with the Department of Pensions along with the intermediation and involvement of Colombo RE Insurance Brokers, officials said in Colombo on Thursday.
The insurance cover was introduced with the objective of safeguarding the lifestyles of retired senior citizens numbering around 536,000 with 25,000 new retirees entering the database annually. The ‘Buhuman’ (Respect) pension policy will cover accidents, hospitalisations and critical illness that many government servants would face post retirement.
Every pensioner under this cover will be provided financial assistance to face the challenges and sicknesses that may occur during their retired life.
The policy is available under three insurance plans and pensioners will be able to choose the best policy depending on their financial strength. They are given the facility of paying the monthly premium directly from their pension. The premiums for these three different policies are Rs. 400, Rs. 300 and Rs. 200 and its value is ranging from Rs.125, 000 to Rs.500, 000. The policy holders are given an option to upgrade their plan with a medical cover of Rs.100, 000 by paying an annual premium of Rs.750.
Speaking at the launching ceremony, Ramal Jasinghe, Director/CEO of Asian Alliance Insurance revealed that they will extend the scheme in collaboration with the EPF to cover private sector retirees depending on the success of this initiative.
He said, “Our senior citizens have played an integral role in the development of Sri Lanka and we are today reaping the benefits of their many years of hard work. We devised this policy for pensioners as a way of showing our appreciation and gratitude to them for a life time of untiring contribution to society”.
Director General of the Department of Pensions S. S. Hettiarachchi noted that the government spends Rs.110 billion annually to pay pensions of public sector pensioners.
He said that the average pension payment for a pensioner is around Rs.15, 000 per month and the deduction of Rs. 450 for the insurance scheme will not be a burden for them.