Major national reinsurance covers not renewed

views 538 2018-01-11 09:47:00 business

Major national insurance procurement programs have lapsed as at December 31, 2017 and have not been extended or re awarded after expiry.

The National Procurement Guidelines rightfully provide that awards cannot be made pending the appeal, and it is very appropriate in instances like this where it is alleged that procurement guidelines are blatantly violated with intent to award at exorbitantly higher premiums, compared to the best bids said a veteran in the industry and founder-secretary of Sri Lanka Insurance Brokers Association (SLIBA) Upali Wickremaretne said.

“However it is learnt that the state controlled entity NITF (National Insurance Trust Fund) has, with the approval of CAPC,MPC and cabinet approval for the 2017 reinsurance programs, an automatic one-month plus extension from December 31, 2017 on a prorated basis with the incumbent panel of reinsurers who in turn have already agreed to renew.

It is important to note that in April 2017 too such a non extension due to what can only be seen as sheer irresponsibility and male-fide intent of the officials at the Fund, affected the much applauded worldwide National Natural Disaster Insurance Scheme (NNDIS), which lapsed and was not extended in similar circumstances.

“Meanwhile overseas companies are acting and holding themselves out as insurance brokers, when they are clearly not authorized to do so. These companies are not Registered Insurance and Re Insurance Brokers in Sri Lanka, as required by the Regulation of Insurance Industry Act No.43 of 2000,” he said.

The said companies are not located in Sri Lanka nor have they the required license from the Insurance Regulatory Commission of Sri Lanka. All institutions seeking insurance broking services and covers should check their registration with regulatory bodies as required by law.

He also pointed out that any broker appointment made to such overseas companies is made illegally and contrary to the express provisions of the regulation and best practices of the insurance industry around the world.

Meanwhile industry association sources also showed extreme concern, on why when there is such a strict regime for registered brokers such overseas companies including fly by nights operate here unchecked. Sources said, ‘They could run away, and there is no accountability for persons who are not registered in the country, as required by law.’

These sources added, ‘We will do our utmost to protect the industry and the interests of the large number of insurance brokers mainly with a view to safeguard the insured and public interest at large’.

(under the courtesy of dailynews.lk news web)

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