It has been confirmed that mobile insurance schemes offered through mobile service providers for the past few years, are violating the Regulation Of Insurance Industry Act.
This was revealed following a lengthy investigation by the Insurance Regulatory Commission of Sri Lanka (IRCSL).
According to the powers vested in the IRCSL through the Regulation Of Insurance Industry Act (No. 43 of 2000), directives have been issued to suspend mobile insurance schemes offered through platforms of mobile service providers.
Dialog Axiata and Mobitel are among the mobile service providers that have offered such mobile insurance plans to their customer base and the biggest profits have been enjoyed by Dialog Axiata from 2013.
Dialog Axiata has promoted mobile insurance services by Softlogic Insurance, Fairfirst and Ceylinco Insurance to 2.4 Mn of its customers, securing a monthly income of over Rs. 10 Mn throughout the years. (More details on this will be revealed soon.)
It is also noteworthy that these companies have deliberately selected sectors that are potentially profitable.
According to experts in the field, a good example is these companies not marketing vehicle insurance policies (which pay the highest returns) despite marketing other insurance policies for several years.
Through mobile insurance schemes, they have offered only personal accident coverage (basic coverage), hospital support plan coverage (including dengue coverage) and life coverage (basic coverage).
Subsequent to receiving the aforementioned directives, the IRCSL has been facing increased pressure from insurance companies and mobile service providers, who are calling to revoke these directives.
‘Sri Lanka Mirror’ will soon expose names and companies involved in this scam.