January 09, 2007 (LBO) – Privately run Ceylinco Insurance, is offering on the spot cash facilities to settle customer claims, in an attempt to retain its lead as one of the biggest insurers in Sri Lanka, officials said Tuesday.
“Claims relating to polices from motor vehicles, marine, health, homes, trade establishments, fire and miscellaneous insurance will hereafter be settled within the same day in cash,” the firm’’s Chief Executive (General Division), Ajith Gunawardena told reporters.
Ceylinco began offering instant cash settlements to its motor policyholders in 2003, making it easier for customers to collect their claims without securing a police report.
“The practice of ‘on the spot cash’ took off in a flash, and now we settle around 550 motor vehicle claims everyday,” Gunawardena said.
He claims Ceylinco controls around 50 percent of the local motor insurance market, which sees around 1,000 accidents each day.
“Nearly 85 percent of claims are for small accidents and we pay out around 500,000 rupees a day to settle motor claims,” Director (Technical), Jagath Alwis said.
Alwis says the firm expects to payout around 1.0-1.5 million rupees each day, when the instant cash facility is used up by