Group Cover

LIC Lanka says Sri Lanka’s low income workforce could be covered by a group insurance policy partially funded by the government. LIC Lanka says Sri Lanka’s low income workforce could be covered by a group insurance policy partially funded by the government. The insurer’s board of directors have agreed to pitch the idea to the government, to set up a state sponsored revolving fund which will part pay the premium for the group policy.

LIC Lanka’s Indian parent is already managing a similar fund for its government, with the fund now topping Indian Rs. 10 billion.

Chairman LIC India R.N. Bhardwaj, here for the board meeting said the group or team policy has become a very successful model in India, helping insure segments of the workforce who previously could not afford insurance cover.

Bhardwaj says the group policy in India covers employment segments including fisheries, the postal sector and even the armed forces.

In Sri Lanka employment segments like the fisheries sector, which was devastated by the December tsunami has very low insurance penetration, in line with the trend for the entire industry.

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