FAQ.

The Insurance Regulatory Commission of Sri Lanka (IRCSL)

What is the IRCSL?

The IRCSL is the regulator of the insurance industry established by the Regulation of Insurance Industry Act, No. 43 of 2000 (the Act) for the purpose of development, supervision and regulation of the Insurance Industry in Sri Lanka. The object and responsibility of the Commission is to ensure that insurance business in Sri Lanka is transacted with integrity and in a professional and prudent manner with a view to safeguarding the interests of the policyholders and potential policyholders.

To view the Act and amendments, please follow the link –

https://ircsl.gov.lk/insurance-legislation/regulation-of-insurance-industry-act-no-43-of-2000.html

Who falls under the regulatory purview of the IRCSL?

All insurers, insurance brokers and loss adjusters operating in Sri Lanka fall under the regulatory purview of the IRCSL. However, following entities have been exempted:

  1. The Agricultural and Agrarian Insurance Board
  2. The Sri Lanka Export Credit Insurance Corporation
  3. The Social Security Board
What are the main functions of the IRCSL?
  • Register persons as insurers
  • Register persons as insurance brokers
  • Register persons as loss adjusters
  • Advise the Government on the development and regulation of the insurance industry
  • Implement the policies and programmes of the Government with respect to the insurance industry;
  • Enter into any bi-lateral or multi-lateral memorandum of understanding pertaining to the sharing of information, with any local or foreign person
  • Employ such officers and servants as may be necessary for the purpose of exercising, performing and discharging the powers, duties and functions of the Commission
  • Acquire and hold any property, movable or immovable and sell, lease, mortgage or otherwise dispose of the same
  • Enter into all such contracts as may be necessary for the exercise, performance and discharge of its powers, duties and functions
  • Do all such other acts as may be necessary for the due exercise, discharge and performance of its’ powers, duties and functions under the Act.
What are the services offered by the IRCSL to policyholders/general public?
  • Provision of information relating to the insurance industry – press releases of the IRCSL can be viewed in following link:

https://ircsl.gov.lk/publications/press-releases.html

 

Our contact details:

Insurance Regulatory Commission of Sri Lanka

Level 11, East Tower

World Trade Centre

Colombo 01.

Telephone: 011 2396184-9

Fax: 011 2396190

E-mail – info@ircsl.gov.lk

Web site – www.ircsl.gov.lk

Insurance Industry

Who is an insurer?

A company registered to carry on insurance business in Sri Lanka under the Act.

How many insurers are there in Sri Lanka?

As at 13th August 2018, there are twenty-eight (28) insurers registered with the Insurance Regulatory Commission of Sri Lanka. Three (3) of them are composite companies transacting both Long Term Insurance and General Insurance business whilst thirteen (13) of them engage in General Insurance business and twelve (12) companies engage only in Long Term Insurance business.

To view the registered insurers as at present, please follow the link –

https://ircsl.gov.lk/insurance-companies.html

What is Long Term Insurance Business?

The business of entering into or maintaining contracts of assurance on human lives. Such contracts including contracts whereby the payment of money is assured on death or on the happening of any contingency dependent on human life, and contracts which are subject to payment of premia for a term dependent on human life. Such contracts are deemed to comprise and include the following sub-classes:

  • life
  • linked long term
  • annuities
  • contracts for the granting of disability and multiple indemnity, accident and sickness benefits, if so specified in such contracts
  • permanent health
  • capital redemption contracts
  • pension policies
What is General Insurance Business?

All insurance business which do not fall within the definition of “long term business” are deemed to comprise and include the following sub-classes:

  • marine, aviation or transit insurance policy
  • fire insurance business
  • motor vehicle insurance business
  • health insurance business
  • employers’ liability insurance business
  • miscellaneous insurance business
Who is an insurance broker?

An insurance broker is a company incorporated under the Companies Act, No. 07 of 2007 and registered under the provisions of the Regulation of Insurance Industry Act, No. 43 of 2000 in order to carry out insurance brokering business, and who functions as an intermediary for the placing of insurance business for or on behalf of an insurer, a policyholder or a proposer for insurance or reinsurance, with an insurance company or reinsurance company, in expectation of a payment by way of brokerage or a commission.

 

To know about the registered insurance brokers as at present, please follow the link –

 

https://ircsl.gov.lk/insurance-brokers.html

Who is a loss adjustor?

A person who has specialized knowledge in investigating and who is assessing losses arising from insurance claims and registered as a loss adjuster under the provisions of the Act.

Who is an insurance agent and what is the role?

A person registered as an insurance agent with an insurance company or insurance brokering company under the provisions of the Regulation of Insurance Industry Act, No. 43 of 2000, and who in consideration of a commission, solicits or procures insurance business for such insurance company or insurance broker, as the case may be. The provisions of the Act and rules issued by the IRCSL stipulate minimum qualifications that a person should possess to become an insurance agent.

Who is a policyholder?

A person who owns an insurance policy and who has the privilege to exercise rights stated in the said insurance policy on the occurrence of a contingent event. 

What are the rights and duties of an insurance policyholder?

Rights

  • To be informed
  • To get what you pay for
  • To be treated in good faith
  • To redress

Duties

  • To act in good faith
  • To pay the premium on time and maintain the insurance policy
  • To understand the policy document
  • To co-operate in processing a claim

To view the details of rights and duties of policyholders, please follow the link –

https://ircsl.gov.lk/images/brochures_foc/Know_your_rights_and_duties_English.pdf

Who is a Beneficiary?

A person (or persons) whose name is declared by the policyholder in a life insurance policy to receive the proceeds of the policy when the insured person dies.

Who is a Claimant?

A person who files a claim or makes a formal request under an insurance policy for payment from the particular insurer to cover a specific loss. The claimant can be a policyholder, beneficiary or any third party.

More details on Sri Lankan insurance industry are presented in our latest Annual Report, which can be viewed by following the link –

https://ircsl.gov.lk/publications/annual-reports.html