Sri Lanka slashes terrorism insurance cover premium

Mar 10, 2010 (LBO) – Sri Lankan authorities said they had decided to slash the premium on general insurance terrorism cover by 75 percent from April 1, 2010 as there were no terrorist activities in the country. Insurance Board of Sri Lanka chairman, Udaya Sri Kariyawasam, has been quoted as saying the reduced premium on terrorism cover would enable the construction industry to consider having insurance policies for their businesses and properties. A A Wijepala, chairman of the National Insurance Trust Fund said in a statement the reduced rate will affect motor, fire, burglary, miscellaneous and any class of general insurance.

“This will affect any general insurance cover (the public) obtains from any insurance company from April 1, 2010.”

The National Insurance Trust Fund provides reinsurance protection to cover losses resulting from catastrophic events like terrorism and strike, riot, and civil commotion.

Sri Lanka’s 30-year ethnic war ended in May 2009 when government forces defeated the Tamil Tigers.

There has been no violence in the island since then.

The separatist war by the Tigers which intensified in 1983 had led to high premiums on terrorism insurance cover.