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Re-Igniting


The insurance watchdog is getting tough with the industry by re-introducing fire tariffs with a few modification starting June 1.
Present fire tariffs have not been revised for nearly 30 years, and insurers have effectively honoured the regulations in breach.
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rnCurrent premiums are whittled down way below minimum tariffs. The new regulation is expected to push up tariffs from its present low levels.rn

rnA Fire Tariff Advisory Committee is being formed later this month, to set guidelines for minimum tariffs, complaints and so on. Names of the six-member committee comprising four from the insurance companies, and a member each from the insurance watchdog and the insurance broking fraternity is expected to be announced shortly. rn

rnBut the Insurance Board of Sri Lanka has to set the penalty rates, in the event a member flouts the law.rn

rnThe new ruling also raises the minimum risk cover from Rs. 300 mn to Rs. 500 mn, says Lasinee Serasinghe, Officer in Charge of the Insurance Board of Sri Lank

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