Sri Lanka insurance regulator suspends Ceylinco Takaful

Aug 06, 2009 (LBO) – Sri Lanka’s insurance regulator, the Insurance Board of Sri Lanka, has suspended the registration of Ceylinco Takaful for general insurance for three weeks, the government information department website said. It gave no further details.

The suspension imposed on Ceylinco Takaful Limited remains till August 26, 2009, it said. It quoted the IBSL director general as saying that under the suspension, effective from Wednesday, Ceylinco Takaful is prohibited from issuing new general insurance policies until the suspension is removed.

A renewal of an insurance policy in respect of general insurance business is considered as a new contract or new insurance policy, the website said.

“In terms of section 18 (2) of the Regulation of Insurance Industry Act No. 43 of 2000, Ceylinco Takaful Limited is required to fulfill its obligations for insurance policies already issued,” it said.