It has been confirmed that mobile insurance schemes sold by mobile companies for the past few years, are violating the Insurance Act.
This was revealed following a lengthy investigation by the Insurance Regulatory Commission of Sri Lanka.
The commission has decided to suspend such schemes, in accordance with the provisions provided for in the Insurance Regulation Act.
Dialog Axiata and Mobitel are among the mobile service operators that offer such mobile insurance plans for their customers and the most profit has been earned by Dialog from 2013.
Dialog has used Softlogic Insurance, Fairfirst and Ceylinco Insurance for this.
Dialog has provided this service to 2.4 Mn of its customers and earned over 10 Mn throughout the years. (We will be revealing more details later)
Using profitable sectors only in these insurance schemes is a noteworthy feature.
Personal accident cover, hospitalization including Dengue, and Life insurance.
Motor accident covers, which require the highest number of payments, not been included is another feature.
It is reported that the mobile service companies are pressuring the Insurance Regulatory Commision to overturn the suspension.
Sri Lanka Mirror will expose the names and companies in the future.