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Sri Lanka Tsunami – Waiting Game

The Boxing Day tsunami strike on the Sri Lankan coastline is expected to wipe off the bottomlines of local insurance companies, with the industry waiting for clarifications from international re-insurers before settling claims.
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The Boxing Day tsunami strike on the Sri Lankan coastline is expected to wipe off the bottomlines of local insurance companies, with the industry waiting for clarifications from international re-insurers before settling claims. The Insurance Association of Sri Lanka met on Monday to find a common ground on how liabilities are to be met, it's President Nimal Perera of Union Assurance told Lanka Business Online.

"Individual companies have written to their re-insurers. Sri Lanka is not the only country that has been affected besides, Thailand, India, Indonesia and so on. But the re-insurance markets of London and Europe are currently closed for the Christmas holidays and we are expecting a feedback on Wednesday," Perera said.

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Perera says, most Sri Lankan policies do not cover earthquakes and tidal waves. Natural disasters in Sri Lanka are usually limited floods and storms. Locals also take out polices for fire and acts of terrorism – to cover against two decades of ethnic war.

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