Ceylinco Life pays 12,700 claims worth Rs. 340m in 3Q

More than 12,700 policyholders of Ceylinco Life received Rs. 340 million in settled claims in the first nine months of 2010, said Deputy Chief Executive Director Thushara Ranasinghe. The value of claims paid out reflects an increase of 12 per cent over the Rs. 303.5 million paid out in the corresponding nine months of 2009, he said.

About 76 per cent or Rs. 259 million of the value of claims paid out in the nine months ending September 30, 2010 were in respect of 1025 death claims, but the largest number of claims settled (10,952) were Hospital Cash Benefits (HCB), Ceylinco Life, he said.

“An increase in the number and cumulative value of claims is the natural outcome of the growth in our policyholder base. One of the most important yardsticks of the quality and strength of an insurance company is its record of speedy and hassle-free claim settlement.”

He said a feature of Ceylinco Life’s claim settlement policy is that all valid claims must be settled within a month of the claim being made.

According to the company’s records for the first nine months of 2010, 96 per cent of death claims had been settled within 30 days of intimation, and in the case of HCB, 99 per cent of claims were settled within a month.

Figures released by the Insurance Board of Sri Lanka (IBSL) for the year ending December 31, 2009 show that Ceylinco Life had the lowest number of claims outstanding by a huge margin. Outstanding claims of Ceylinco Life as at December 31, 2009 numbered 82 out of 15,699 claims.

Besides paying Rs. 340 million in claims in the first nine months of the current year, Ceylinco Life also made a net transfer of Rs. 4,169 million to its Life Fund in this period, increasing it to Rs. 30.6 billion and achieving a noteworthy YoY growth of 15.7 per cent. Total income grew nearly 8 per cent to Rs. 8.5 billion as at September 30, 2010 with Premium Income improving by 9.6 per cent to Rs. 6 billion.

The company’s solvency margin, a key indicator of financial health, had improved further in the review period, and stood at 8.8 times the statutory requirement as at September 30.

Recognised as one of the country’s most valuable brands, and the winner of global awards for brand excellence from the World Brand Congress in 2009 and 2010, Ceylinco Life has a market share of more than 31 per cent according to the IBSL’s 2009 figures.

The company has maintained its leadership of the country’s long term insurance sector from 2004 onwards through an uncompromising adherence to fundamentals and best practice.