IBSL suspends Ceylinco Takaful registration

The Insurance Board of Sri Lanka (IBSL) has suspended the registration of Ceylinco Takaful Limited (CTL) in respect of General Insurance business in terms of Section 18 of the Regulation of Insurance Industry Act No. 43 of 2000 for three weeks from August 5.

Accordingly, Ceylinco Takaful Limited is prohibited from issuing new insurance policies in respect of general insurance business until the suspension is removed and IBSL informs CTL in writing.

A renewal of an insurance policy in respect of general insurance business is considered a new contract / new insurance policy.

The reason for the suspension is that seven directors had left the company within 10 months and the Principal officer is also in remand.

There is no officer for the company to operate. This has resulted in not meeting the regulatory requirement, a senior official of IBSL said.

In terms of Section 18 (2) of the Regulation of Insurance Industry Act No. 43 of 2000, CTL is required to fulfill its obligations for insurance policies already issued.

“There is no danger to existing policy holders”, the official said.

Until the IBSL informs otherwise, the suspension imposed on CTL remains unchanged till 4.30 pm on August 26. - SJ