Insurance laws Sri Lanka
Insurance regulation in Sri Lanka is governed by the Regulation of Insurance Industry Act, which established the Insurance Regulatory Commission of Sri Lanka (IRCSL) as the primary supervisory authority. The IRCSL oversees the development, supervision, and regulation of the insurance industry to ensure that insurance business is conducted with integrity and in a professional and prudent manner, safeguarding the interests of policyholders and potential policyholders.
🏛️ Regulatory Authority
Insurance Regulatory Commission of Sri Lanka (IRCSL):Established under the Regulation of Insurance Industry Act, the IRCSL is responsible for regulating and supervising the insurance industry in Sri Lanka
🧾 Key Regulatory Framework
Regulation of Insurance Industry Act The primary legislation governing the insurance industry in Sri Lanka, providing the legal framework for the establishment and functioning of the IRCSL, registration of insurers, and other regulatory matter.
Insurance Corporation Act Establishes the Insurance Corporation of Ceylon, which was the state-owned insurance entity in Sri Lank.
Securities and Exchange Commission of Sri Lanka Act Relevant to the insurance industry as it defines entities such as stock exchanges, stock brokers, stock dealers, and market intermediarie
Finance Business Act Includes rules for the establishment and operation of a scheme of insurance of deposits, related to the insurance industr.
National Insurance Trust Fund Act Establishes the National Insurance Trust Fund, which is exempt from being listed on a stock exchang.
📊 Recent Developments
*Tightening Capital Requirements: The IRCSL announced reforms to tighten Risk-Based Capital (RBC) requirements for insurers, aiming to enhance the industry's financial stabiliy.
**Optional Compensation Scheme (OCS)*: Introduced an OCS through licensed general insurance companies to provide compensation to third-party victims of motor vehicle accidents or their legal heirs, offering a payout without the need for court proceedins.
*Insurance Sales Standards for Mobile and Line Operators: Issued directives to ensure insurance sales through Mobile Network Operators (MNOs) and Fixed Line Operators (FLOs) uphold integrity, transparency, and policyholder protection.
RELATED Blog
0 comments