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Insurers approve 70% of Ditwah claims; Motor sector leads
View(s):By Ishu Bandara
Sri Lanka’s insurance companies have responded strongly to the damage caused by Cyclone Ditwah, approving 70% of all claims by December 22.
Insurance Regulatory Commission of Sri Lanka data show that total claims received by the industry have reached Rs. 42,568,846,596 (about Rs. 42 billion).
Of the 70% of all claims approved by the industry, the motor insurance sector leads the way, with roughly 74.55% (11,690 claims) of the total 15,680 claims being approved. The non-motor sector, covering property and industrial losses, has approved around 59.73% (4,817) of its 8,064 claims.
Vehicles caught in the Ditwah disaster: Total payments for motor claims have reached Rs. 352,904,678.
While total losses are estimated to exceed Rs 42.5 billion, insurance companies have already disbursed Rs 3,429,206,550 (over Rs 3.4 billion) in payments, comprising both finalised settlements and advance payments to policyholders.
The financial breakdown highlights a massive gap between motor and non-motor liabilities. The non-motor sector accounts for the majority of the financial burden, with an estimated claim value of Rs. 36,745,578,622 (Rs. 36.7 billion). So far, payments in this category total Rs. 3,076,301,872 (more than Rs. 3 billion), which includes Rs. 1.49 billion (1,492,609,106) in advance payments to help businesses and homeowners begin recovery.
In the motor sector, estimated claims for vehicles stand at Rs. 5,823,267,974 (Rs. 5.8 billion). Total payments for motor claims have reached Rs. 352,904,678, with a smaller portion of that, Rs. 24.4 million (Rs. 24,413,797), issued as advances.
Insurance Regulatory Commission of Sri Lanka Director General Damayanthi Fernando told the Sunday Times that insurance companies had not made any ex gratia payments (voluntary) so far, despite the large number of claims and high expected payouts. Instead, she said the focus was on settling admitted claims and providing advance payments to help affected people carry out urgent repairs and meet immediate needs.
The DG said the industry was releasing funds gradually. Although the total amount to be paid is substantial, the steady flow of approved claims and advance payments is beginning to support recovery in affected communities, she said.
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