Ceylinco defends its latest insurance product amidst furore

Ceylinco Insurance’s latest product offering on the spot payment if they are not fraudulent has triggered a controversy in the industry and prompted the Insurance Board of Sri Lanka (IBSL) to launch an investigation, according to industry sources. Ceylinco Insurance submitted its procedures of ‘on the spot’ claims to the IBSL at its request, who were satisfied by the submission, but industry sources are sceptical saying these same procedures are difficult to adhere to.

“Upon strong scepticism from other industry players, the IBSL ordered Ceylinco to produce the procedure of ‘on the spot’ claims on ‘Loketama Ekai’ (Unique to the world),” an industry source said. He said this campaign declares that any insurance claim, if not fraudulent, will be paid ‘on the spot’. “Industry players agree that except for motor insurance claims, the general insurance claims cannot be paid on the spot, without proper assessment,” he said.

“The company had refused to lay down the procedure for IBSL’s perusal initially, saying that it is competitor information, but once the regulator sent them a strongly worded letter, they had made a presentation,” the source further said. An IBSL source said that Ceylinco had made a ‘very good’ presentation on their procedure for the ‘Unique to the World’ campaign and the regulator was ‘very satisfied’ with it.

However, industry sources claim that such an insurance scheme is misleading. “Any general insurance claim cannot be settled on-the-spot. This is misleading the public. Also, the IBSL has not verified the procedure, but just listened to the presentation,” an industry source said.

Jagath de Alwis, Director Technical at Ceylinco Insurance vehemently denied the allegations. “Because our competitors are incapable of paying any claim on the spot does not mean we fall into the same category,” he said.

He pointed out that Ceylinco has 120 engineers who are in the fields of civil, electronic and mechanical. “We have 30 odd claim adjustors which included cost consultants and quantity surveyors. We also have there forensic scientists and we are well prepared to pay a claim on the spot,” he said.