Life insurers seek more time to reveal stance on social security benefits for agents

Life insurance companies have sought more time to reveal their stance on granting social security benefits to life insurance agents,  following a meeting with Labour Minister Nimal Siripala de Silva, according to a press release issued by the Labour Ministry. 

De Silva, along with Insurance Regulatory Commission of Sri Lanka (IRCSL) Chairman Razik Zarook and key Labour Ministry officials held a long discussion round with the top executives of life insurance companies at the ministry, on November 24.

During the discussions, De Silva pressed the top executives of the life insurance firms to extend the EPF/ETF to their insurance agents or to come up with an alternative social security scheme.

He stressed that it’s the government responsibility to ensure that 45,000 odd insurance agents, who are not entitled for the EPF/ETF schemes, receive social security benefits. Therefore, he noted  that the government has initiated a programme to provide social security benefits for life insurance agents as well as other informal sector workers, including domestic workers.

However, the insurance firms noted that the life insurance agents are recognised as per the regulations of the IRCSL. Hence, they are not entitled to contribute to the EPF/ETF schemes. In response, de Silva revealed the plans to amend the current laws and regulations that prevent the insurance agents taking part in these social security schemes.

In arguing back, the life insurance firms feared that if they are to contribute to the EPF/ETF, it would be a considerable hit on their financial performance. However, De Silva lamented stressing that this is an unacceptable argument when considering the record profits of the life insurance firms and he reminded that it’s the social responsibility of the life insurance firms to  allocate part of their income on the social security schemes of their own employees.

At the conclusion of the meeting, the top executives of life insurance firms requested further time to communicate their final stance on the issue. De Silva urged the life insurance firms to submit their stance within an appropriate amount of time.