Sri Lanka: Insurance regulator calls for an administrator to Ceylinco Takaful
Insurance Board of Sri Lanka (IBSL) has called for quotations from persons with financial or legal background with insurance experience to be appointed as an administrator to Ceylinco Takaful Ltd; a Islamic insurance arm owned by former Ceylinco Group.
A notice to public by the IBSL, island nation’s insurance watch dog further said that the appointment is yet to be taken place in terms of section 20 of the Regulation of Insurance Industry Act No.43 of 2000 to manage and administer the claim settlement procedure of the company.
The notice further said that sealed quotation addressed to IBSL Chairperson stating the total fee should reach before November 30.
Ceylinco Takaful Ltd. was formerly suspended the registration by IBSL for general insurance for three weeks, in 5 August 2009 prohibiting it from issuing new insurance policies in respect of General Insurance Business and back in 26th August 2009, the prohibition was further extended.
Finally on 9 December 2009 IBSL issuing a notice said that it has further extended the suspension of registration imposed on Ceylinco Takaful Ltd. in respect of General Insurance Business in terms of section 18 (4) (b) of the Regulation of Insurance Industry Act, No. 43 of 2000 for a period of one year commencing from December 2009 to December 8, 2010.
However in IBSL annual report for 2009 says initially, the Board suspended the registration of Ceylinco Takaful in view of the directors and the principal officer of the company being unable to carry out their functions and adds that thereafter, the company failed to maintain the stipulated minimum solvency margin requirement.
IBSL annual report for 2009 further underlined that Ceylinco Takaful Limited, whose registration is under suspension, and it has requested the Board to grant approval for the transfer of all its shares from its present holding company to another firm. The reports concludes that considering the numerous court orders and decisions prohibiting the transfer of shares and assets belonging to corporate members of the Ceylinco Group of Companies, the Board sought the advice and assistance of the Attorney-General in order to obtain the exclusion of Ceylinco Takaful Limited from such orders and decisions.
According to the data available Ceylinco Takaful was a part of crisis ridden Ceylinco Group’s Ceylinco Profit Sharing Investment Corporation that left away nearly 12,000 depositors with a total of Rs.800 million funds back in early 2009.
- Asian Tribune -