Insurance Regulatory Commission lifts suspension on Co-operative Insurance Company

The Insurance Regulatory Commission (IRCSL), has lifted the suspension of business activities imposed on Co-operative Insurance Company PLC with effect from Friday 26 May 2023.

Following the move, Co-operative Insurance Company PLC is now allowed to issue fresh insurance policies and to hold out as an insurer to the general public.

Co-operative Insurance Company PLC, incorporated in 1999, is one of the leading insurers providing innovative insurance solutions covering across all lines of businesses with the third largest network in Sri Lanka. It is an active member of the United Kingdom’s International Co-operative and Mutual Insurance Federation (ICMIF), which is a global community of 120 co-operative insurance companies from 65 countries worldwide, and supports its members through reinsurance, training, consultancy, research, department, and publications.

The suspension of business activities of Co-operative Insurance Company PLC was first imposed by the IRCSL on 10 April 2023 in the midst of a lengthy legal battle which had transpired between two factions of the board of directors of Co-operative Insurance Company PLC since September 2022, resulting in multiple Court cases being instituted in the Commercial High Court of Colombo and the Court of Appeal. Such suspension was further extended on 28 April 2023.

Two cases filed in the Court of Appeal bearing Nos.: CA Writ Application 224/2023 and CA Writ Application 246/2023 against IRCSL and Co-operative Insurance Company PLC were mentioned in the Court of Appeal on 26 May 2023. 

It was informed by Counsel appearing for and on behalf of the Attorney General representing the IRCSL, to the Court of Appeal that a decision had been taken to lift the suspension, pursuant to an agreement reached among the directors of Co-operative Insurance Company PLC to comply with the directions of the Regulator IRCSL which had been communicated to the IRCSL in writing by the nine directors recognised by the IRCSL of Co-operative Insurance Company PLC. 

The company had agreed on the composition of the Board of Directors to the satisfaction of the Regulator and had resolved that all decisions made to change the composition of the Board of Co-operative Insurance Company PLC to be invalid. wIn case bearing No.: CA Writ Application 224/2023, the shareholder Petitioners were represented by Dr. Romesh De Silva, President’s Counsel with Niran Anketell, Attorney-at-Law instructed by Sanath Wijewardena, Attorney-at-Law. Co-operative Insurance Company PLC was represented by Nishan Premathiratne, Attorney-at-Law with Sidath Gajanayaka, Attorney-at-Law instructed by Gamindu Karunasena, Attorney-at-Law. 

The Attorney General, appearing for the IRCSL, was represented by Yuresha Fernando, Deputy Solicitor General with Shemanthi Dunuwille, State Counsel and Chamithri Ranathunga, State Counsel. 

The interventionist shareholder petitioners were represented by Dr. Harsha Cabral, President’s Counsel and Vikum Jayasinghe, Attorney-at-Law instructed by Rangika Kumarapeli, Attorney-at-Law.

In case bearing No.: CA Writ Application 246/2023, the shareholder petitioners were represented by Dr. Harsha Cabral, President’s Counsel and Vikum Jayasinghe, Attorney-at-Law instructed by Rangika Kumarapeli, Attorney-at-Law. Co-operative Insurance Company PLC and Cooplife Insurance Company Ltd. were represented by Nishan Premathiratne, Attorney-at-Law with Sidath Gajanayaka, Attorney-at-Law instructed by Gamindu Karunasena, Attorney-at-Law. 

The Attorney General, appearing for the IRCSL, was represented by Yuresha Fernando, Deputy Solicitor General with Shemanthi Dunuwille, State Counsel and Chamithri Ranathunga, State Counsel.