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Lower re-insurance premia will boost economic development
Tuesday, 9 June 2009 - 10:26 AM SL Time
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Local Insurance companies are updating their foreign re-insurance companies on the situation in the country as Sri Lanka has now become a no war country, said a Senior official in the local Insurance industry.
He said that local insurance companies did not charge high premia on marine insurance covers during the war period in the country. Clients who had foreign insurers paid high premia due to the war risk in the country.
The Insurance Board of Sri Lanka (IBSL) in a media statement recently said insurance charges for the past several years had been increased since Sri Lanka was affected by the war and foreign re-insurance companies, had charged higher premia on sea and airfreight and other relevant insurance cover. Since the war is over, the country could not be considered as a war-affected zone.
IBSL has informed insurance companies to arrange for lower premia of insurance cover especially by negotiating with foreign re-insurance companies to bring about a reduction of all insurance charges and pass on the benefit to clients who get insurance cover for all services mainly the cover for international air and sea freight charges, the release said.
Lower re-insurance premia will help reduce the cost of doing business and also save resources that go out of the country, IBSL said.
According to IBSL the reduction of aviation and marine insurance will help boost the country s economic development.
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