June 16, 2019
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    Insurance cover for tourists up to Rs. 100 million Featured

    May 26, 2019

    The Personal Accident (PA) cover of the Strike, Riot, Civil Commotion and Terrorism Fund (SRCC & T Fund) will be extended to riot and terrorism risks for inbound tourists, National Insurance Trust Fund (NITF) Board Chairman Manjula de Silva said. He said the move is in response to requests from the travel and insurance industries. The SRCC and terrorism cover will be available up to Rs. 100 million per person under currently applicable premium rates.

    It will provide cover in the event of death or total permanent disability as a consequence of a riot or terrorism act during their stay in Sri Lanka. “This cover can be obtained from any licensed general insurance company as an extension to any other travel, medical or PA policy that is purchased from the said insurance company,” de Silva said.

    SRCC and T Fund is managed by the state-owned National Insurance Trust Fund (NITF) in collaboration with the insurance industry. The premium will depend on the insured value and the period of stay subject to a minimum premium of Rs. 1,500.

    The demand for SRCC & T insurance in the country surged suddenly after the April 21 bombings that snuffed out over 250 lives. Insurance sector representatives said there has been a rapid increase in requests for ‘add-ons’ for this cover especially from the corporate sector. Companies want to add the terrorism cover to their existing insurance covers. Sri Lanka Insurance setting a new standard for the travel insurance market re-launched the ‘Travel Protect’ insurance policy to enable travellers to obtain travel insurance without a medical certificate up to 80 years of age.

    Meanwhile, the government extended a raft of measures including tax concessions and a moratorium for loans obtained by sectors affected by the attacks from April this year to April next year. The 14 registered insurance companies provide SRCC & TC on behalf of National Insurance Trust Fund. The SRCC & TF was set up in 1987 to provide reinsurance cover for strike, riot, civil commotion and terrorism activities within the country.

    Thereafter in 2006, as per the National Insurance Trust Fund Act No. 28 of 2006, the SRCC & TF was absorbed into the National Insurance Trust Fund. The objective of the National Insurance Trust Fund is to obtain reinsurance protection to cover losses resulting from catastrophic events to relieve the burden of the Government from excessive claims arising out of strike, riot, civil commotion and terrorism activities.

    Following the April 21 attacks, travel advisories were issued by various countries on the prevailing conditions in Sri Lanka. The number of arrivals is expected to decline in the coming months as the country is yet to assure travellers that it is a safe place to visit.

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