SRI LANKA INSURANCE
Q: Could you provide an overview of Sri Lanka Insurance’s (SLIC) operations?
A: Established in 1962, SLIC boasts an asset base exceeding Rs. 197 billion as well as a life fund worth 105 billion rupees. A pioneer in Sri Lanka’s insurance sector, the company possesses extensive technical expertise to cater to customers’ diverse needs.
With the experience and trust that we’ve built over decades, we have access to strong reinsurance arrangements. This enabled SLIC to pay what is considered to be the largest claim in the sector amounting to Rs. 39.5 billion.
Q: What are the risks we face in everyday life?
A: Losses or damage can occur in any place, any time. For instance, vehicles or property could sustain accidental damage, or people could sustain injuries or even lose their lives.
Q: And how can these risks be mitigated?
A: First and foremost, people need to be aware of the risks to which they’re exposed and thereafter, identify how to mitigate or avoid them. As you go about your everyday life, there are certain risks that could impact you, your property or your business.
Upon identifying a risk, individuals have two options: they would have to work out whether they can address the risk on their own; or they could choose to insure it.
Insuring is likely to be the more prudent option as the magnitude of the risk that one may have to face cannot be predicted. Paying a relatively small premium every year and transferring those risks to an insurer would provide individuals with peace of mind rather than carrying the burden of the risk themselves.
Q: Could you elaborate on the importance of having insurance?
A: Insurance provides financial assistance to restore properties or businesses to their pre-damage condition in the event of any losses or damage. With adequate coverage, whether it is a vehicle or a building, it could be restored to its original condition without an undue financial burden being placed on the owner.
In the case of businesses, insurers could also cover any loss of profits following physical damage to buildings, machinery and contents.
Q: What concerns should customers have when it comes to insurance, in your view?
A: Customers need to identify the risks to which they’re exposed first and obtain suitable cover to address them.
Secondly, the insured value should be adequate. The basis of selecting the value to be insured differs according to the type of policy.
For example, where buildings are concerned, they’re usually insured for their reinstatement value. A building may be 30 years old but in the event it’s destroyed, it needs to be rebuilt now and take into consideration the current cost of materials. So it should be insured for such a value.
However, the scenario is different with vehicles as they are generally insured for their estimated market value.
Customers could obtain advice from insurers with regard to the basis of determining the value to be insured. It’s also important to note that underinsuring may result in the full claim not being paid.
Q: And last but not least, what are SLIC’s future plans?
A: We’re planning to improve our islandwide coverage, and make our products and services even more easily accessible to customers and potential customers. Distribution through affinity partners and technology based solutions would be among our main areas of focus in the future.