Compulsory reinsurance coverage with NTF

Friday, 18 December 2015 00:24 - - {{hitsCtrl.values.hits}}

The Government has made it compulsory for all insurance companies to obtain 30% of their reinsurance needs through the National Insurance Trust Fund.

According to Cabinet Spokesman, the proposal made by Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs, was approved by the Cabinet of Ministers, to obtain a reinsurance coverage from foreign reinsurance companies to minimize the risk in case of unordinary loss.

National Insurance Trust Fund was established through Act No. 28 0f 2006 under the Ministry of Policy Planning, Economic Affairs, Child, Youth and Cultural Affairs, to uplift the living standards of Sri Lankan citizens.

This was established as an institution to implement the schemes introduced by the government from time to time to safeguard Public and Local Government service officials from the problems they face in areas such as Health, Accident, Death and unexpected property disasters.

At present NITF has introduced several insurance schemes Agrahara, Motor, SRCC & terrorism, Migrant Workers and Reinsurance. NITF has extended its services to the general public with regard to the provision of all classes of general insurance requirements from 1 September 2009.