Sri Lanka Janashakthi continues to pay claims; talking to regulator

May 16, 2009 (LBO) – Sri Lanka’s Janashakthi Insurance said it had made submissions to the regulator to end a three week suspension of its license and the firm would continue to pay claims, while it awaited a response. Janashakthi said the Insurance Board of Sri Lanka (IBSL) had “responded positively” to proposals given by the company and has informed the firm that it would “give serious consideration” to its submissions which would be referred to board members for a decision.

Last week, the IBSL suspended the license of Janashakthi for three weeks. The firm has appealed the decision.

Janashakthi said it had been “in constant dialogue” with the regulator and had been informed that the proposals – which the company did not specify “ would be submitted to the members of the insurance board for a decision.

Meanwhile the company continued to pay its claims and has moved to re-assure its life policy holders.

“The current temporary suspension does not affect the company’s claims paying ability,” managing director Prakash Schaffter said in statement.

“We are extremely well capitalised, have excellent reinsurance arrangements and practice prudent underwriting.

“The liquidity position of t