NITF: Many benefits for a nominal premium

by Sapumali GALAGODA

The National Insurance Trust Fund (NITF),the insurance company of the government which celebrates its fifth anniversary this month has plans to expand operations to the SAARC region.

According to Chairman NITF Senaka D. Abeygoonasekera, the institution was established by President Mahinda Rajapaksa to insure government servants and entities in keeping with the vision of the government.

NITF Chairman Senaka D. Abeygoonasekera

Initially, NITF gave the Agrahara health insurance cover to 650,000 public servants. Now we have 1.3 million and all pensionable people are benefited by the health insurance scheme where the premium is only Rs.75. Under the scheme Rs 350,000 for heart surgery, Rs. 150,000 for hospitalisation, Rs.100,000 for cancer treatment per annum is payable. In addition Rs 3500 could be claimed once in three years for spectacles with Rs. 600,000 as death benefits.

Abegoonasekera said that nowhere in the world can a player give so many benefits for such a small premium. This is a social obligation for public servants and NITF has proposed enhance of accidental death cover to Rs one million, natural death cover to Rs. 300,000 and surgeries to Rs 500,000. These benefits will apply to the spouse and children below 21 years, he said.

NITF provides insurance cover to migrant workers who contribute the largest foreign exchange inflow to the country. The cover is provided with the Foreign Employment Bureau and is mandatory for all migrant workers. "In the event of loss of employment workers will be brought at our expense", he said. NITF spent Rs 115 million to bring 200 persons who were stranded in Libya. In the event a worker meets with an untimely death on foreign soil, NITF will bring the body back. If a person dies in an accident NITF compensates with a maximum of Rs 600,000. In the event a worker falls ill, he is admitted to hospital and NITF bears the cost of medical treatment. NITF is the country's sole re insurer.

Therefore, the losses faced by the 19 primary insurance companies due to perils by an act of terrorism or civil commotion is covered by NITF as all insurance companies are members of the NITF under a treaty.

Abeygoonasekera said that for an emerging economy such as Sri Lanka there are two vital factors to be considered ie: banking and insurance. There are investors who have applied for land in the South close to the Hambantota harbour to start assembly plants.

Modern international banking and stable insurance cover for investments is a must. To cater to this requirement NITF has a second branch in Hambantota, the Magampura branch.

In 2011, NITF has contributed nearly Rs 3 billion to the national budget as done since its inception. NITF has earned these funds from annual premiums by insuring government entities and projects and functioning at minimal cost.

In keeping with the 2011 budget proposals, NITF has commenced establishing Agrahara wards on a par with private hospitals.

NITF established the first Agrahara wards at the Colombo South and Ragama Hospitals and plans to follow with 15 hospitals this year and cover 35 percent of the 1,050 hospitals by 2016.