The Insurance Board of Sri Lanka (IBSL), at its next board meeting, will review the Janashakthi Insurance response after IBSL's temporary suspension of the company. "Janashakthi sent a letter showing cause and we will set a date for the board meeting to discuss it," Udaya Sri Kariyawasam, Chairman IBSL told The Sunday Times FT.
Prakash Schaffer, Managing Director of the company said, "We have given a plan of action and replied to their letter. We have also given a time frame to rectify (the situation). Most of what IBSL had requested was rectified. There is some more and to rectify this we indicated a time frame (in the response).”
IBSL last week imposed a 3-week suspension (till June 2) on Janashakthi's life and general insurance business with regard to new policies.
The company says the suspension has been imposed due to a non-compliance with the Solvency Ratio, due in turn to the IBSL, not accepting certain specific assets as admissible even though these same assets had been previously accepted as being admissible for solvency since 2006 upto date. |
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