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| Sunday, 9 January 2005 |
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Insurance companies sorting out tsunami claims by Hiran H.Senewiratne The country's Insurance companies are now grappling with paying off claims to their clients affected by the tsunami tidal wave devastation. Some leading companies say that they are not depending on government funds to pay the claims since they have got sufficient funds of their own. Most of the insurance companies are re- insured with foreign insurance companies. The country's premier Insurance company, Sri Lanka Insurance Corporation Ltd (SLICL) has announced that it will pay all claims to affected tsunami clients. The company has decided to pay all claims for vehicle insurance policy holders, property and life as soon as possible, SLICL Director Damean Fernando said. He said that they have already paid some of the claims including motor insurance and property, to affected parties. According to company sources, it had paid claims for more than 600 vehicles, amounting to Rs 300 million.The company has also taken a decision to pay claims to affected parties within 24 hours.At present the company enjoys more than 70 per cent market share. Ceylico Group Chairman Lalith Kotalawala has pledged to support all customers who have been affected by the recent catastrophe and to put their lives back to normalacy. "A lot of speculation has spread that our group's financial companies are going to revoke the 'Act of God' clause.This does not give the correct view of the company," said Kotalawala at a media conference. He said that the company had given priority to help victims who had been affected by the tidal wave and added that they would subsequently be taking necessary measures to deal with existing legislations, rules and regulations such as Insurance policies, Central Bank rules and regulations, parate execution laws and Banking Act. Lalith Kotalawala said that due to the disaster a lot of small and medium size companies were affected and they would be given every possible support by the company to put their lives and businesses back on track. Kotalawala said that all loans would be rescheduled for affected parties that had been given by financial institutes belonging to the group. Eagle Insurance Company Ltd Chief Executive Officer Deepal Sooriyarachchi said that damages caused by the recent Tsunami are not covered under the motor insurance policies and were not available for clients to obtain, in an effort to help customers overcome these difficulties the company has decided to offer an ex-gratia financial support package where 100 per cent of the claim value will be paid to all customers who have been with the company for more than 10 years. Fifty per cent of the claim will be paid to those who have been with the company for more than three years. If a person has obtained a flood cover the total claim will be paid by the company. Clients who have claims arising from property and casualty lines of business and who have taken earthquake cover will be paid their dues. We have the total support and commitment of our re-insurers. The claims settlement process with regard to earthquake claims have already commenced, Sooriyararachchi said. He said that with regard to Life Insurance, all claims are considered accidental deaths arising from the natural calamity; hence beneficiaries of clients who have taken accident covers will receive those accidental death benefits in addition to basic life cover. In the wake of this disaster Union Assurance Ltd (UAL) stands committed to honour its obligations to all stakeholders and supports the rehabilitation and reconstruction effort, company sources says. The company has received information of over 150 admissible claims amounting to approximately Rs 1.5 billion, which will be paid as soon as possible. The company expects the total payout to exceed Rs two billion,its sources said. According to the company sources the 'Union Shop' and 'Union Niwasa' policies covered an in-built earthquake cover. Customers who owned small and medium sized shops and homes are entitled to insurance claims against the damage caused by the tsunami. Where the motor vehicle claims are concerned that customers who had obtained a flood cover will be honoured by UAL. It is also reviewing all available options to settle other motor claims as well. Life insurance claims arising from the disaster are considered accidental and policyholders with accident cover are entitled to double or triple the life cover, UAL sources added. |
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