News
Vehicle insurance claims dominate 21,300 disaster filings
View(s):By Ishu Bandara
As of December 11, the Insurance Regulatory Commission of Sri Lanka (IRCSL) has received 21,306 claims following the recent floods and cyclone Ditwah.
The figure was based on data from all 14 insurance companies except for the Agricultural and Agrarian Insurance Board. But the number of life insurance claims reported so far remains negligible overall.
Speaking to the Sunday Times, IRCL Director General Damayanthi Fernando revealed that there are 21,306 general claims related to the natural disaster.
Of these, 14,064 are vehicle insurance claims, while 7,242 are claims covering fire, marine, health, life and miscellaneous categories. The number of life claims recorded so far remains very low.
Vehicles submerged in water in Wellampitiya. Pic by Indika Handuwala
“We are collecting daily reports from all insurance companies to obtain the number of claims they have received, both motor and non-motor, related to the Ditwah disaster. We also held a meeting recently and instructed them to begin settling claims immediately. So far, some claims have already been paid, and several advance payments have also been provided to customers. However, the exact figures for total claims and claims settled so far are expected to be ready by next Monday, while sector-wise and district-wise data are expected to be received in about a month. Also, all insurance companies assured us at the meeting that they will expedite the claim finalisation process,” Ms Fernando said.
The Sunday Times has learned, the total extent of damage to various sectors cannot yet be fully determined based on insurance claims, as some vehicle policies provide only third-party coverage, while certain non-vehicle policies do not include flood-related cover, making it difficult to obtain complete details of the losses.
Ms Fernando said insurance coverage among Small and Medium Enterprises (SMEs) in Sri Lanka remains relatively low, while residential house insurance is also minimal. She noted that disasters of this scale underscore the critical importance of insurance, including health and life cover.
“At this stage, most insurance companies have already notified their reinsurance partners about the situation in Sri Lanka and are in the process of securing the necessary financial support to settle claims arising from Cyclone Ditwah,” she said.
However, the DG emphasised the need for Sri Lankans to rethink how and where they establish businesses or residences in the future, taking risk levels into serious consideration.
She noted that in certain high-risk areas, such as the Kelani valley, the Urban Development Authority (UDA) no longer grants approval for residential or warehouse use on ground floors due to recurring flood threats. In the plantation sector as well, many houses and warehouses are built close to water streams on hillsides, creating additional vulnerability.
“We need to mitigate these risks to protect human life and prevent repeated losses. The public must look at risk mitigation first; that means constructing buildings properly and ensuring that facilities are located in safer areas,” Ms Fernando reiterated.
Sri Lanka Insurance Corporation Limited Chief Operating Officer (CEO-General Insurance), Sameera Dharmasena, said that technical officers are visiting affected areas to assess the claims received.
However, he noted that many clients are facing practical difficulties, as garages in several affected regions are not yet fully operational, with many garage owners themselves being victims of the disaster, particularly in the Kandy area.
“As a result, while claim intimation has been received, customers are unable to proceed with repairs. A similar situation exists with fire and engineering claims, where customers are not yet in a position to obtain repair quotations because service providers have also been affected by the floods.
“At present, our teams are carrying out on-site assessments and submitting daily reports to the IRCSL. However, support from other authorities is needed to ensure that garages and related service sectors become fully functional so that the claims process can move forward and be completed from their end,” he said.
However, during a meeting held last week between state officials and the regulator, it was noted that important economic sectors, including tourism, SMEs, and export-oriented industries, have been severely impacted by the disaster.
Officials agreed that the prompt settlement of insurance claims is crucial to restoring business operations, supporting income generation, and rebuilding affected segments of the economy.
The regulator also emphasised that it is closely monitoring the claims settlement process to ensure transparency and speedy payments, while working to remove any administrative barriers that may hinder relief efforts.
The regulator advised policyholders who are unable to contact insurers to call the hotline 077 241 8511.
Meanwhile, the Agricultural & Agrarian Insurance Board reported that 273,000 acres of paddy land have been affected by flooding, impacting 153,000 farmers across 20 districts. AAIB Chairman Pemasiri Jasingarachchi said farmers can report losses via the hotline: 1918.
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