Press briefing of Cabinet Decision taken on 2017-05-30

Reinsurance cover for National Natural Disaster and Emergency Relief Insurance Scheme for the year 2017/18

- In a Budget Proposal for the year 2016 an insurance scheme has been introduced under the National Insurance Trust Fund to protect the entire country against natural disasters such as Cyclones, Storms, Tempests, Floods, Landslides, Hurricanes, Earthquakes, Tsunami and other similar natural disasters. In this context, a sum of Rs.500 million has been set apart in the Budget of 2017 to develop this Insurance Scheme as a more productive one enhancing the benefits which could be derived from the present insurance scheme. Accordingly, providing of benefits have been more enlarged including insurance coverage for loss of life due to lightning, falling objects on individuals, property damage due to falling of trees caused by heavy winds, collapse of retaining walls caused by heavy rain, permanent disability caused by natural disasters etc. Under this insurance scheme the National Insurance Trust Fund has provided an insurance coverage of Rs.15 billion and therefore, a re-insurance has to be obtained with the objective of preventing an unusual loss for the fund. Accordingly, the proposal made by Hon. Ranil Wickremasinghe, the Minister of National Policies and Economic Affairs, to select a re-insurance company in accordance with the recommendations of the Technical Evaluation Committee and the Standing Cabinet Appointed Procurement Committee, to pay the due installments in that regard and to enter into the relevant Agreements, was approved by the Cabinet.