‘Buhuman Policy’ for State pensioners driving innovation in insurance industry

Wednesday, 30 July 2014 00:00 - - {{hitsCtrl.values.hits}}

The Government Pensions Department together with Asian Alliance Insurance and Colombo Re Insurance Brokers launched a unique health insurance policy on 24 July named ‘Buhuman,’ targeting the 530,000 base of State pensioners. This unique product addresses a clear need gap that existed in the society offering a range of special benefits including personal accident cover, hospitalisation cover, funeral expenses cover and critical illnesses cover. The first Buhuman insurance policy was issued by Minister of Public Administration John Seneviratne to former Navy Commander Admiral Jayantha Colombage at a ceremony held in Colombo.

The policy is available under three insurance plans and ranges from Rs. 125,000 to Rs. 500,000. While the pensioners will chose from one of the three plans depending on their financial capabilities, the affordable monthly premium ranges from Rs. 200 to Rs. 400 including taxes, depending on the plan selected. The special features include a monthly premium instead of an annual premium. Buhuman insurance age limit has been increased to 75 years compared to the 65-year barrier of most other insurance products. A hospital cash scheme is available for insurance policy holders. The innovative solution was designed and developed by the Colombo Re Insurance Brokers, whose Business Development Manager Roshini Poshitha said: “The insurance industry should think beyond traditional insurance products in order to be of real use to the society. We see the low penetration of the insurance industry as an opportunity to innovate. Having identified a need in the society we worked with six different insurance companies to develop the perfect solution for the State pensioners.” According to Pensions Department Director General Sunil Hettiarachchi, currently the total pensioner population is around 530,000 whereas 25,000 retire annually. “The Department of Pensions has a responsibility to take care of these senior citizens. They have served the country well and we want their honour protected. They should not be a burden to anybody. This was one of the promises of the ‘Mahinda Chinthana’ and mentioned in previous budget speeches too, so insurance products like Buhuman are a need of the hour.” According to Asian Alliance CEO Ramal Jayasinghe, there is a strong need for insurance-related products to support the ageing population of Sri Lanka. “With the support of Colombo Re Insurance Brokers, we have responded well to the government call and are currently working together on several other innovative products that will help expanding the insurance industry.” Asian Alliance Insurance PLC, one of the few companies in the industry to have obtained an international rating, is a composite insurer operating through a branch network positioned in all provinces of the country.