IBSL suspends registration of Janashakthi Insurance

Company confident of speedy resolution

The Insurance Board of Sri Lanka (IBSL) has suspended the registration of Janashakthi Insurance PLC in respect of Long Term Insurance Business and General Insurance Business in terms of Section 18 of the Regulation of Insurance Industry Act No. 43 of 2000 for three weeks from 12 noon yesterday, a media release said.

Accordingly, Janashakthi Insurance PLC is prohibited from issuing new insurance policies in respect of Long Term Insurance Business and General Insurance Business until the suspension is removed and informed in writing to Janashakthi Insurance PLC by the IBSL. A renewal of an insurance policy in respect of General Insurance Business is considered as a new contract/new insurance policy.

In terms of Section 18 (2) of the Regulation of Insurance Industry Act, No. 43 of 2000, Janashakthi Insurance PLC is required to fulfil its obligations for insurance policies already issued. Until the IBSL informs otherwise, the suspension imposed hereby on Janashakthi Insurance PLC remains unchanged till June 2.

Meanwhile in a statement Janashakthi Insurance said Company has been informed by the IBSL of an imposition of a temporary suspension of the trading licence effective from 12 noon today for a period of 3 weeks.

The Company is in the process of appealing against this sudden and unexpected imposition of a very severe penalty. The suspension has been imposed due to a non-compliance with the Solvency Ratio, due in turn to the IBSL, not accepting certain specific assets as admissible even though these same assets had been previously accepted as being admissible for solvency since 2006 upto date.

The Company will continue to honour all claims that may arise during this period and appeals to all shareholders, customers and the general public to continue to have confidence in the Company despite this sudden imposition of a suspension.

Janashakthi Insurance is confident that this matter will be speedily resolved after further dialogue with the IBSL, a company statement said.

The Company would like to reiterate that it has, as of date, met all due liabilities, obligations, taxes, direct and indirect and claim payments in a very timely manner and will continue to do so, the statement said.