False insurance brokers COPE raps CID and Sri Lanka Insurance

By Yohan Perera   

Committee on Public Enterprises (COPE) has requested Sri Lanka Insurance to inquire into the fate of a complaint made to CID on fake insurance brokers in 2009 after it was revealed that nothing has been done about it, Parliament media unit said yesterday.

COPE Chairman Ranjith Bandara requested Sri Lanka Insurance to inquire from CID about the progress of the investigation into the incident. It has been revealed that the complaint has been lodged with CID in 2009 and nothing has been done about it.   

Officials of Sri Lanka Insurance said the matter was pertaining to fictitious brokers who had been appointed during the time Sri Lanka Insurance was run as a private entity.   

It has been decided to send observations from COPE to the Ministry of Foreign Affairs for the purpose of a formal closure of the two branches under the Insurance Corporation in Maldives and Seychelles which have suffered huge financial losses. The decision to close down the Sri Lanka Insurance branch in Maldives has been made 25 years ago while the decision on the closure of Seychelles has been made in 2016. However it is yet to be implemented according to COPE.   

Also the COPE had recommended that Sri Lanka Insurance should be divided into 2 entities so that life insurance business and general insurance business could be handled by two entities. 

• It has been decided to send observations from COPE to the Ministry of  Foreign Affairs for the purpose of a formal closure of the two branches