SLIC pioneers new protection insurance for drivers

Wednesday, 2 January 2013 00:03 - - {{hitsCtrl.values.hits}}

By Rashika Fazali

Protecting the lives of drivers, Sri Lanka Insurance (SLI) along with The Department of Motor Traffic (DMT) launched a new insurance scheme ‘Drivers Protect Insurance Cover’ for drivers in Sri Lanka yesterday.

DMT Commissioner General S.H. Harishchandra commented, “We are very glad to introduce this new insurance cover for drivers. DMT, established in 1928, has over the years gone from the introduction of acts to driver’s manuals to guidelines book to the introduction of chips. This insurance cover is another new insurance policy which will benefit the driver.”

Sri Lanka currently faces 3,000 fatal accidents a year with a majority of these accidents causing partial to permanent disabilities for these accident victims revealed SLI Managing Director Mohan De Alwis adding, “This was why we decided to introduce it. We need to take the lead.”

The ‘Drivers Protect Insurance Cover’ covers two types of personal accident covers extending Rs. 250,000 – one for all light vehicle drivers which can purchased for a reasonable sum of Rs. 500 for eight years and the other for all heavy vehicles which can be purchased for a reasonable sum of Rs. 250 for four years.

The insurance holders have the option of renewing the insurance cover after the expiration of either four or eight years with the payment of the nominal fee. However, this insurance is optional and can be purchased either from SLI or the DMT. Only driving license holders between the ages 18 to 70 can obtain this insurance.

This unique insurance cover provides the sum insured to the beneficiary in an event of a death or a permanent disability.

De Alwis further stated that they will make the necessities arrangements to create awareness on the need of having this particular insurance for the drivers. He said, “Many people in Sri Lanka don’t see the need for insurance covers. Our insurance penetration rate is in fact lower than 12%.”

SLI, a leader in the general insurance sector, has been running the game since 1962 started off as state owned corporation which was converted to a private limited liability company, having reinstated to the State in 2009. Today, it is the largest and the strongest insurer in the country with an asset base amounting to Rs. 109 billion, the largest life fund of Rs. 57 billion and a strong capitalisation of Rs. 6 billion.