Ceylinco Life policyholders to receive record Rs. 5 bn as annual bonuses
View(s):Ceylinco Life has announced annual bonuses totalling a record Rs. 5 billion to some 300,000 policyholders from the surplus generated by the company’s Life Fund in 2018, significantly enhancing the value of their life policies.
An increase of Rs. 600 million or 13.6 per cent over the bonuses declared last year, the payout reflects the strong growth recorded by the life insurer in the year concluded, its 15th successive year of market leadership, according to a company statement.
Many of the recipients of these annual bonuses will also receive an additional windfall in the form of Rs. 74 million in cash bonuses, a benefit exclusive to Ceylinco Life, which has been rewarding loyal policyholders with such cash bonuses for the past 15 years.
These ‘Avurudu’ cash bonuses are in the form immediately-encashable cheques and are computed on the basis of the number of years each policy has been active. With this year’s cash bonus payments, the cumulative value of cash bonuses paid by Ceylinco Life thus far will reach Rs. 674 million.
Commenting on the annual bonuses declared by the company this year, Ceylinco Life Managing Director/CEO Thushara Ranasinghe said: “Ceylinco Life outperformed industry averages in 2018 and increased its market share despite the intense competition in the market and a dampened economic outlook. The trust and confidence of our policyholders is a key element of this performance, and as always Ceylinco Life is generous in acknowledging its appreciation of the company’s loyal policyholders.”
In the case of Ceylinco Life’s annual bonuses, even policyholders who purchased their policies in December 2018 are eligible to receive a bonus, in line with the company’s policy of declaring bonuses from the very first year of issue of a policy. The bonus certificates will be received by Ceylinco Life policyholders in the post in May.
Ceylinco Life’s cash bonuses will be sent by post to life policyholders who had completed their 10th, 15th, 20th, 25th and 30th policy years as at December 31, 2018. These bonuses are computed at Rs.100 for every Rs.1,000 of the sum assured for policyholders who have completed 25 years, while policyholders who have completed 20 years are eligible to receive a cash bonus computed at Rs.75 per Rs 1,000 sum assured, those who have completed 15 years Rs.50 per Rs 1000 sum assured and those who have completed 10 years Rs. 25 per Rs 1000 sum assured.