Insurance premiums are expected to go up by mid this year when local insurers factor earthquake and tsunami cover into policies. Insurance premiums are expected to go up by mid this year when local insurers factor earthquake and tsunami cover into policies. “The local industry is still discussing this but premiums will probably go up by maybe the middle of this year,” said Prakash Schaffter, Director/General Manager Janashakthi Insurance, during a news conference to clarify its position on tsunami claims.
The company has received claims of around Rs. 1 bn and says will meet life insurance claims under accident cover, property claims under earthquake cover and on a partial ex-gratia basis; and motor insurance claims under flood cover.
Over the last few weeks many local insurance companies made similar announcements.
But the industry is still mapping out a ‘Plan B’ to shore up its profits.
Even now, Sri Lanka doesn’t so much as offer earthquake cover for vehicles, let alone insurance protection against tsunamis.
An earthquake was considered so improbable that the cover for earthquakes, in property insurance