PARLIAMENT

Amendment Bill will regulate Insurance sector

Parliament correspondents

Speaker Chamal Rajapaksa presided

Speaker Chamal Rajapaksa presided yesterday when Parliament met at 1 pm. After presentation of papers and oral questions, Parliament took up the second reading of the Regulation of Insurance Industry (Amendment) Bill.

International Monetary Cooperation Senior Minister Sarath Amunugama: I move the Regulation of Insurance Industry (Amendment) Bill.

Insurance is also as important as the banking field. But we have concentrated less on regulating the insurance field. There is a close connection between the Insurance and the banking field. There are financial crisis in the insurance field as well as in the banking field.

We move this motion to amend the Act to regulate the insurance sector.

The Government is unable to uplift the insurance field without regulating it. Due to various administrative defects, it is clear that insurance coverages are not provided properly. We have granted a grace period of three years to insurance companies, under this amendment, to regulate their companies.

Eran Wickramaratne (UNP): Our policy is that all these institutions involving the financial sector should be regulated. The period given to the companies to regulate themselves is not sufficient.

In principle, we don't agree with the imposing of laws that would affect existing insurance companies that are functioning well.

I suggest that new laws should be dealt with the new companies, sparing those companies that are existing.

Disaster Management Minister Mahinda Amaraweera: Public attention on insurance is increasing. But when we consider the attention of the public on life insurance, is inadequate.

Deputy Speaker Chandima Weerakkody takes the chair

Sometimes when people are helpless due to illness they would not feel so if they had an insurance cover.

A matter I would like to discuss is some insurance institutions encourage the public to open insurance policies and maintain it for a short period. It may be that the insurance agent too get a share out of if, but later they give it up when they don't get their share. Later on these policy holders cease to pay their premiums and in turn, the companies make a good profit.

Health Deputy Minister Lalith Dissanayake: Under these new amendments, the avenues for fraudsters such as Sakvithi to cheat the public is closed.

Harsha de Silva (UNP): Today the price of a coconut is Rs 70. Although much profit is gained from the share market, it is useless if the public cannot buy coconuts at a cheaper price.

The Amendment Bill is an appreciable one. Expect for one fact, we agree with other amendments in the Bill. There are 33 insurance companies, including the five major companies. My view is that we don't need so many insurance companies for a small country as ours.

Although the Parliament complex went under water during the rainy season, it was not a problem to us as we had an insurance coverage. But during the same rainy season, a large number of shop owners in the country were affected. Some of them had to close their businesses due to loss. We should have a mechanism to urge them to get an insurance coverage.

Insurance industry has turned very competitive

Finance Deputy Minister Chandrasiri Gajadeera: This is an important amendment brought to Parliament today in order to improve the functions of the insurance industry. It is necessary to regulate the insurance industry so that benefits could be reaped by all its stakeholders. The insurance industry has become very competitive today.

Nobody likes to incur losses through their businesses. Therefore, we believe it is the bounden duty of the Government to safeguard the insurance companies while providing social protection to those insured.

That is why we brought this amendment today. Specially rural people should be able to reap more and more benefits through insurance. We believe that rural people will reap more benefits when competition among the insurance companies are enhanced.

There are many practical problems prevailing in the industry at present. We have realized and identified such problems. Action will be taken to resolve them shortly.

Ajith Kumara (JVP): We understand that insurance companies earn huge profits. But, rather than grant benefits to those insured, some companies engage in earning profits for themselves. Therefore, it is the duty of the Government to monitor these companies.

There are instances where some companies refuse to pay due compensation pledged in the agreement. Today those who are insured, feel insecure and helpless.

Therefore, it is necessary to regulate the industry in order to strengthen its activities and also provide social protection and benefits to the insured.

The House took up the State of Emergency Regulations for debate after the completion of the Regulation of Insurance Industry (Amendment) Bill debate.

North and East booming with development projects

Prime Minister D M Jayaratne: The people who had suffered from the 30-year brutal war, have fresh hopes now. Both, the Northern and Eastern provinces are booming with large scale development projects, enabling the people to spend their lives in peace.

But it is reported that terrorist activities are still emerging in a different manner. So it is our responsibility to act vigilantly, not allowing it to raise its ugly head once again.

The LTTE network is being strengthened internationally. Many foreign countries and several NGOs provide funds to improve its activities. We have initiated a program to enhance diplomatic ties with foreign countries through our diplomatic missions abroad.

We have also decided to provide financial grants to religious places of worship destroyed by war. It is necessary to help and protect these religious leaders who had sacrificed their lives to safeguard religious places during the war.

D M Swaminathan (UNP): A number of robberies, abductions and murders, are taking place daily in the North and East, although the State of Emergency Regulations are extended during each month. Therefore, it is necessary that the Government take appropriate action to curtail these illegal activities. The Government should investigate these incidents and reveal to the country who is behind these activities.

Duminda Silva (UPFA): The Government has further extended Emergency Regulations with the objective of enhancing the freedom achieved by our heroic Armed Forces. This victory was gained by sacrificing many lives of the Armed Forces. That is why emergency regulations was extended. The emergency regulations will not be used to harass the people.

Suresh Premachandra (TNA): A number of illegal activities are taking place in Jaffna.

It was revealed that one political party is behind all these incidents, which has resulted in tarnishing the image of the government. Action should be taken to stop all these illegal incidents.

Murugesu Chandrasekeran - UPFA: Abductions, robberies and assassinations have increased in the Jaffna peninsula. The people are living in fear due to the many armed groups roaming the area. It is necessary to curb these activities creating a conducive environment for the people to live in peace.

Dr Jayalath Jayawardena (UNP): The Negombo lagoon is full of natural resources favourable to the varieties of fish. But the fisher folk are in fear of a threat to its extinction due to the landing of sea planes in the lagoon, which has badly affected the livelihood of the fishermen as well.

Unais Farook (UPFA): Today the people are living freely and happily in the aftermath of the war. So it is the responsibility of the Government to take measures to stop terrorism raising its head once again.

Similarly, the Government should take appropriate steps to enhance the well-being of the settlers.

Sarawana Bawan (TNA): Many Tamil speaking people were killed in the recent past.

It is the responsibility of the Government to rectify this situation. Otherwise the Government will not be able to win the hearts of the Tamil speaking people.

Today tourist arrivals have gone up due to the prevailing peaceful environment. Therefore as we do not want to damage our reputation, we are ready to conduct investigations on those matters and punish those responsible parties found guilty.

New MP sworn in

Parliamentary Corrs.

Vanni District member Muthali Bawa Farooq of the Sri Lanka Muslim Congress (SLMC), was sworn in as a Member of Parliament before Speaker Chamal Rajapaksa yesterday.

The new MP filled the vacancy created by the death of former MP Noordeen Mashoor, who passed away recently.

Health Minister makes special statement

Parliamentary corrs

The Health Ministry has ample stocks of medicine to treat the AH1N1, Health Minister Maithripala Sirisena told Parliament yesterday.

"Though the ongoing national immunization program against the AH1N1 influenza will end on January 8, with the expiry of the existing stock of vaccines, the World Health Organization (WHO) has sent enough medicine stocks to curtail the disease. They are available at hospitals," the Minister said. The Minister was making a special statement in response to a series of questions raised by DNA MP Anura Kumara Dissanayake.

He further said that there was a sharp decline in the incidence of the disease in the recent weeks. Most vulnerable groups threatened by the disease are now covered by the immunization program. He said that his Ministry had received the vaccine in two batches, including 385,000 vaccines in the first stock and 1.54 million vaccines in the second batch. Shelf life of both batches will end on January 8, he said.

Azwer tells UNP MP:

Don't insult Islam culture

UPFA National List MP A H M Azwer, yesterday enjoined UNP Parliamentarian Dayasiri Jayasekera not to insult the Islam culture which he said the latter had made a habit of.

The issue sparked off when MP Azwer was in the Chair as the presiding member and MP Jayasekera referred to him as 'Azwer Methithuma'.

MP Azwer then corrected the member on his score requesting Jayasekera to refer to him as 'Mr Chairman'. MP Jayasekera responded to this by referring jestingly to the red fez worn by the presiding member, saying he was under the impression that a Santa Clause had come to Parliament, now that Christmas was also over. "This is an insult to us. You made such a reference on a previous occasion too. Don't do this. It is an insult to our Islam culture," Azwer admonished.

Emergency passed

Parliament corrs

The State of Emergency was passed with a majority of 111 votes in Parliament yesterday.

While 134 members voted in favour, 23 members voted against.

The UNP, DNA and TNA voted against. MP M B Farook voted with the Government.A motion to incorporate the Lester James Peiris and Sumithra Peiris Foundation was moved in Parliament yesterday.

UPFA Parliamentarian Malani Fonseka moved the motion and UPFA MP J R P Suriyapperuma seconded it.

After the motion was moved, Speaker Chamal Rajapaksa stated that Dr Lester James Peiris and Sumithra Peiris were in the Speaker's Gallery. The members of the Government and Opposition expressed their pleasure thumping their desks.

The Chief Opposition Whip John Amarathunga stated that the Opposition would support the Bill.