NITF last year profit Rs. 3 billion

Charumini de Silva

The National Insurance Trust Fund (NITF) portfolio last year achieved success in services rendered to society and made a profit of three billion rupees.

Deputy Secretary to the Treasury, Udaya Ranjith Seneviratne said before terrorism was defeated the premium losses of life and damage property insurance were increased by an additional percentage. "At present we are able to reduce the premium to benefit our customers", he said.

"President Mahinda Rajapaksa has directed that there should be no monopoly in the insurance sector therefore, we are contributing to healthy competition by offering more services at reasonable premiums. The Government is also issuing a new circular directing all public sector organizations to obtain their insurance services from the NITF and the Sri Lanka Insurance Board", he said.

National Insurance Trust Fund Chairman, A. A. Wijepala said, "The main trust of the NITF was the public sector with new inroads to be made in the plantations and apparel sectors. We are concentrating on providing insurance benefits to the plantation sector and the apparel export industries on a non-profit basis as these two sectors are contributing to attract more foreign exchange and additional employment and financial benefits to the economy.

We are also insuring Sri Lankans going abroad for employment as there are approximately 1.6 million employed abroad. Our contribution to the Treasury last year recorded Rs.1.8 billion and for the year 2009 we are targeting a profit of four billion rupees", he said.

He said the Agrahara insurance scheme for public servants was also very effective and widespread with over 662,000 public sector employees registered as at the end of last year. For the duration of the year 2008 NITF received 106,917 claims from public servants and paid Rs.1,083 million as benefits. During the current year 70,859 claims were made and Rs.775 million was paid.

Among the benefits for public servants are accident death and natural death compensation, benefits at child birth, cardiac, cancer and kidney surgery, hospitalization and payments for spectacles, he said.

He said the NITF also is in motor insurance business from last year with private and public sectors joining the scheme. Formerly public sector vehicles were not insured, but at present the NITF has extended their motor insurance scheme to the public sector as well and 35,000 vehicles have been insured up to now, he said.