The government is likely to seek around Rs. 3 billion for the national budget 2012 from the state-owned National Insurance Trust Fund (NITF), Finance Ministry sources said.
The NITF has been regularly contributing to state coffers with Rs. 1.5 billion in 2007, Rs.1.3 billion in 2008, Rs.2.3 billion in 2009 and Rs.2.25 billion in 2010.
Fund Chairman Senaka Abeygoonasekera told the Business Times that the NITF continues to contribute funds to the Treasury, but it has not indicated the amount they needed for 2012 budget as yet. He added that he has made a proposal to increase the monthly premium of Rs.75 to Rs.150 by 1.3 million public servants who are members of the Agrahara health insurance scheme. “It is mandatory for all government servants to be insured, with this scheme. All migrant workers numbering 600,000 are insured with us, which is also mandatory. In addition to these members some of the state projects as well as assets are insured with us,” he added.
The monthly premium is being increased to provide more health facilities for Agrahara members. This matter was discussed at the pre budget meeting with Treasury Secretary Dr. P.B. Jayasundera and it is likely to be announced in the 2012 budget, Mr. Abeygoonasekera disclosed, responding to a question raised by the Business Times. Accordingly, claims for heart surgery will be increased from Rs. 350,000 to Rs.500, 000, hospitalization claims up to Rs.150, 000 per annum will be raised to Rs.250, 000. Accidental death claims of up to Rs. 600,000 and Rs.50,000 in case of natural death, Rs.100, 000 for medication for cancer patients and loan protection cover if NITF members borrow money from banks, will also be increased, proportionately, he added.
Responding to a question on the financial stability of the fund, Mr. Abeygoonasekera noted that investments remain conservative and are deemed low risk in line with the NITF Act. The Act stipulates that investments should be made in Government bonds, Government securities, or in equity of any company focused on upgrading health institutions; 99.89% of investments were in the form of Government securities, he asserted.
Further the NITF provides reinsurance facilities for 16 insurance companies in the island and in turn it has entered into a reinsurance treaty with Lloyd’s insurance which is being annually renewed, he said. He said that they have a surplus fund of over Rs. 1 billion and they made a profit of over Rs. 2.7 billion in the past two financial quarters of the year. |
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