Ceylinco Life launches 'Divi Sayura' to protect fishermen in coastal areas

A new high-risk life insurance policy designed specifically to protect lower income groups whose lives and livelihoods are linked to the coastal economy has been launched by Ceylinco Life, the country's leading life insurer.

Branded 'Divi Sayura,' the new policy is an over-the-counter, single-premium, no-frills product that will be affordable to the majority of coastal residents, whose lives are increasingly at risk the company said.

A single premium payment of Rs 2,200 will provide life insurance cover of Rs 100,000 for five years per person under this policy, which was prompted by the huge loss of life in the December 26 tsunami.

"The tsunami has clearly demonstrated the value of insurance, and also revealed how vulnerable the people in the coastal areas are," Ceylinco Life Chief Executive Director R. Renganathan said. "Although Ceylinco Life has settled every single claim made in respect of those who died in the tsunami, the number of persons insured was a fraction of those who lost their lives in this disaster."

He pointed out that recent events have shown that the risk to coastal dwellers has not diminished, further underlining the need for an affordable policy for these people. "As the new leader in insurance, Ceylinco Life has decided to take on the risk of insuring this segment of the population," Mr. Renganathan added.

The new policy is targeted at persons in the 18 to 45 age group whose monthly household incomes range from Rs 5,000 to Rs 15,000. One of the obvious segments to which 'Divi Sayura' would appeal will be fishermen.

Although 'Divi Sayura' is designed to provide basic death cover, policyholders will be considered for two substantial benefits provided by Ceylinco Life under its 'Life Rewards' portfolio, the company said.

These are the 'Pranama' scholarships to high-achieving students, and grants from the 'Aloka' Fund for the continuation of the education of deceased policyholders' children. As an over-the-counter product, the new policy will not require policyholders to undergo medical checks. With no renewals or periodic premium payments, 'Divi Sayura' will also be completely hassle-free for the policyholder, the company said.

When the policy lapses at the end of five years, the policyholder may simply purchase another one, provided he or she is less than 45 years of age.