Financial Times

Novel insurance scheme for micro financiers

HNB Assurance will introduce “Micro Insurance”, a new scheme for micro financiers, for the first time in Sri Lanka, this Tuesday.

“The ‘Micro Insurance Scheme,’ will be launched in collaboration with the Hatton National Bank’s (HNB), ‘Gami Pubuduwa’ scheme for small and medium enterprises (SMEs),” an official from HNB Assurance told The Sunday Times FT.

This comes in the wake of their notable turnover and profitability for the first quarter of 2006. The combined turnover grew by 41 percent, while net profit after tax grew by 50 percent in comparison with the corresponding quarter last year.

“HNB at present is very strong in the SME sector and the insurance scheme came as a natural progression,” the official said.

In addition to this new scheme, HNB Assurance launched other insurance plans to maintain their growth. “A new zero interest plan has been introduced for General Insurance (other than life insurance) with monthly instalments instead of a large premium every year and HNB Assurance also has a bonus for its life insurance share holders,” he added.

Amidst launching popular insurance plans, the company has entered into an agreement with Medilink Lanka (Private) Ltd, a member of the Medicare Group of India to offer cashless hospitalisation, and also travel policies and ‘Motor Guard’ for vehicle insurance are among other new schemes.

“We are in a relatively better position to creating awareness about insurance because HNB has 150 branches around the country and we work hand in hand with them,” he added saying the company would continue to improve the schemes by creating insurance plans that would suit agricultural and fishing communities who have irregular incomes and find it difficult to keep up with conventional insurance policies.

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