Sri Lanka Insurance Corporation was established in 1962 as a State Owned Corporation. It was converted to a Limited Liability Company for a brief period of 6 years and was re-instilled in the state sector on the 4th June 2009. Sri Lanka Insurance is now backed by government protection and service excellence on par with the best in the private sector. At present Sri Lanka Insurance has over 120 Branches Island with an unmatched assets base under management (refer figure 1) with a Life fund of over Rs.43 billion and over one million policies in force
Sri Lanka Insurance is the first insurance company in Sri Lanka to be assigned a global rating, for financial strength and ...view middle of the document...
2. Life Insurance products
Sri Lanka Insurance now provides seven different life insurance products. Following are the insurance products offered.
2.1 Divi Thilina
This insurance policy’s main aim is to offer life insurance at an affordable premium, also at the same time rewarding the assured person with a maturity more that he/she had invested. The maturity period for this policy varies from 5 to 40 years. In addition to the policy value the policyholders will receive an attractive bonus at the time of the maturity of the policy.
2.2 Yasa Isuru
This insurance policy is unique as it provides special payments before the maturity of the policy. The age limit for this policy is between 18 to 65 years. The advanced payments received can be used for any of policyholder’s or his/her family’s needs. The size of the advance payment depends on the sum assured; higher the sum assured higher the higher the advance payment.
There are 10, 15 and 20 year terms available in this insurance policy. The two types of benefits offered under this policy; maturity benefits and death benefits.
a) Maturity Benefits
Maturity benefits are offered in a 2 stage payment plan during the policy period and the balance of the payment is made at the time of maturity of the policy. The payment plan differs depending on the term of the insurance policy. Following are the payment plans for each term;
• 10 year term- 20% of the sum is paid at the end of the 4th year in the first stage, 30% of the sum is paid at the end of the 7th year and rest of the 50% of the sum is paid at the end of the 10th year plus bonuses.
• 15 year term- 20% of the sum is paid at the end of the 5th year in the first stage, 20% of the sum is paid at the end of the 10th year and rest of the 60% of the sum is paid at the end of the 15th year plus bonuses.
• 20 year term- 20% of the sum is paid at the end of the 10th year in the first stage, 20% of the sum is paid at the end of the 10th year and rest of the 60% of the sum is paid at the end of the 20th year plus bonuses.
b) Death Benefits
Under this policy if a death occurs during the term of the policy the policyholder’s beneficiaries will be paid the assured sum plus bonuses without any deduction.
2.3 Kalana Mithuru (Joint Life plan of assurance)
This insurance policy insures lives of two people; it can be either life of husband and wife or business partners. The sum assured and the bonus would be paid at maturity or on the first death. In addition to this one benefit of this insurance policy that it covers two lives at the cost of almost one.
Praguna provides life cover of an amount twice that of the sum assured, with another compensation for the reduction in the value of money due to inflation. Policy values are automatically increased by 5% annually, without the burden of having to pay extra premiums. Also, there is death benefit which assures that the policy holder’s beneficiaries will be paid...