July 17, 2007 (LBO) – DFCC Vardhana Bank (DVB) has teamed up with Sri Lanka Insurance Corporation (SLIC) to introduce insurance products to consumers in parallel to banking services. ‘Vardhana Assurance’ makes available life, motor and general insurance, covering marine, title, mortgage plans.
“All life insurance policies will be underwritten by the SLIC,” Nalaka Godahewa, CEO of SLIC said.
“The consumer wants everything at one place and we thought to offer financial products that are generally not offered by banks,” L G Perera, Managing Director of DVB said.
The bank with a AA (lka) Fitch rating also provides a retirement plan that lets customers earn an income that increase at a five percent compound interest rate.
DFCC with over 20,000 customers saw its deposit base increase by half during the last two years.
“Sri Lanka has very low (insurance) penetration levels, due to low awareness levels,” Perera said.
SLIC with a life fund of 32 billion rupees hopes the new venture will increase insurance penetration which is around ten percent in Sri Lanka.