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Hitting The Roof

The overall increase hovers around 30 percent, some motorists face higher premiums of up to 75 percent, while third party cover has doubled by 100 percent.
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rnrnFollowing intense discussion between the Insurance Board of Sri Lanka (IBSL) and the industry, the watchdog agreed to deregulate motor tariffs from January 1.

rnrnBut tariffs were not revised, as the industry agreed collectively to let rates remain until they carried out further study.

rnrnldblquote Lengthy studies were conducted and the industry agreed on basic guidelines to set future rates, though it was left to individual firms to draw up their premium levels, says Sarath Wikramanayake, President of the Insurance Association of Sri Lanka.

rnrnWikramanyake, however, declined to go into specific details, but industry watchers say the hike was imminent as most insurers were shying away from the unprofitable motor sector.

rnrnThe average premiums for private vehicles and motorbikes will rise 30 percent and commercial vehicles 75 percent.

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