In the event of accidental death or dismemberment affecting a parent or guardian, the student will receive money to continue the degree. However, the amount received will vary according to the course.
"We have done a survey and realized that some students suddenly become dropouts due to the various reasons," said Bandu Ranasinghe, Chairman of the IDM group which runs a private computer teaching institution.
"Sudden death or an accident to their parents or guardians put their studies at risk."
IDM's school of computing provides a three-year degree program costing 450,000 rupee for the entire course.
The survey showed that a large number of students from middle income groups are enrolled at the institute.
Currently there are 20,000 enrollments taking place annually at 50 branches under thirteen main study streams.
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"Initially we will target to give the insurance cover for only 14 branches even though we have 50 branches island-wide," Ranasinghe said.
"This