Regulator imposes temporary suspension on Co-operative Insurance

The Insurance Regulatory Commission of Sri Lanka (IRCSL) has imposed a temporary suspension of the registration of the General Insurance business of Co-operative Insurance Company PLC with effect from 11 April until 2 May.

This decision had been made by the IRCSL due to Composition of the Board of Directors in accordance with the Article of Association of CICPLC and to submit the show cause to IRCSL on or before 25 April.

The Commission in arriving at the decision has observed that Cooperative has failed to maintain the composition of the Board of Directors in accordance with the Article of Association of the company, thereby carrying on its business in a manner likely to be detrimental to the interest of its policyholders.

Following the ruling, CICPLC has temporarily ceased acquiring or renewing its general insurance business as directed by the IRCSL.

However, CICPLC assured that this suspension is only temporary and its Claims and Finance Departments are fully operational. It reassured all its stakeholders that CICPLC management has already taken necessary steps to mitigate the issue as soon as possible.