‘No-objection’ letters not required for vehicle insurance claims: IRCSL

23 August 2023 07:10 am Views - {{hitsCtrl.values.hits}} 2 Bookmark

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Insurance Regulatory Commission of Sri Lanka (IRCSL) yesterday said it had informed insurance companies not to ask for ‘No-objection’ letters from financiers to pay insurance claims on vehicles that are under hire purchase or lease agreements.

“Motor Insurance Policies specify that partial loss claims to motor vehicles under hire purchase/lease agreements be paid to policyholders.

We have been informed of instances where policyholders were insisted upon to furnish No-Objection Letters from their financiers to obtain insurance claims.

Accordingly, the Insurance Regulatory Commission of Sri Lanka has informed insurance companies issuing motor insurance policies, not to ask such policyholders to submit ‘No-Objection’ letters from financiers of vehicles, to pay insurance claims,” IRCSL said in a brief note.

Comments - 2

Terrence K Wednesday, 23 August 2023 08:34 AM

The Insurance Regulatory Commission should understand that in lease/hire purchase agreements absolute ownership remains with the financier on the lease/hire purchase contract. If there is a deviation the contract of the terms and conditions are violated. In accidents etc. the asset belongs to the Lessor as the rights of absolute ownership and no one can change a contractual obligation.

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Lankan Wednesday, 23 August 2023 09:27 AM

Good Move. Otherwise, we need to go behind the finance company to get NOL. which makes a time delay.

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