By Suresh Perera
Expressing optimism of "taking off in a bigger way in 2017", Jt. Managing Director of Sri Lanka Insurance (SLI), T. M. R. Bangsa Jayah, pledged to push ahead with ambitious plans to grow the national footprint of the state-owned giant in the competitive insurance industry as a key stakeholder in the collective drive towards economic prosperity.
With 18% growth in 2015, SLI "ploughed back its profits to society" by contributing Rs. 11 billion to government coffers during that year, a feat no other institution has been able to achieve, he asserted.
"We are positive of breaking new ground through innovative concepts to grow our 22% market share in the insurance industry", he said in an interview with The Sunday Island at SLI’s Vauxhall Street head office in Colombo last week.
After the change of government, Bangsa Jayah, a retired senior police officer, was appointed in February 2015 as Jt. MD of SLI, the country’s biggest government-owned insurance company with a Life Fund of a staggering Rs. 90.5 billion.
Established in 1962 by the then Trade Minister, T. B. Illangaratne, SLI is now a major shareholder of Lanka Hospitals, Litro Gas, LG terminal, Grand Hyatt Colombo, Colombo Dockyard and Ceylon Asset Management.
Bangsa Jayah said that SLI will be celebrating its 55th anniversary on January 20 with a pirith chanting ceremony followed by an alms- giving. The President, Prime Minister and a host of Cabinet Ministers are expected to participate in the ceremony.
Describing the government’s ambitious initiative to provide free health insurance cover to the country’s 2.4 million student population as a "giant step since C. W. W. Kannangara’s historic free education policy", he noted that the novel scheme will be implemented through SLI in collaboration with the Education Ministry with Rs. 2.7 billion in Treasury funding per annum.
Asked whether students will have to pay a premium under the proposed scheme, the Jt. MD replied, "No, it’s absolutely free of charge with the Treasury absorbing the total expenditure for its implementation".
Q: Will students of private schools also be entitled to the insurance cover?
It will cover the whole student population without any discrimination. Parents of all students who attend private schools are not affluent. Sometimes it is a matter of not having a choice and they find it difficult to meet the financial commitments. Private schools will be regulated.
On the modalities of the proposed health insurance policy, he explained that each student will be entitled to a cover of Rs. 1,000 per day for hospitalization either in a government or private medical facility. They will be given an insurance identity card. In the event of the death or permanent disability of the child’s father or mother, a payment will be made to continue the student’s education.
On an average, 160,000 parents within the 25-45 age group die each year. However, no payment will be made under the insurance policy in the event of the death of a student as the objective is to protect the child.
Q: The FCID and the Bribery Commission are probing some alleged irregularities at SLI during the previous regime?
We opened all our books to them and statements are being recorded from some persons. As far as I am aware, a group of individuals is suspected of being involved. The investigation is being done in a professional manner.
Bangsa Jayah stressed that that the HR (Human Resources) structure should be developed to benefit the economy, as done in many other countries. At SLI, 80% of the employees are women. There are other institutions which have a ratio of 85% women in their workforce. Many men are content with driving a three-wheeler. As a government, there should be a cohesive plan to draw them into the mainstream to enhance productivity.
The Finance Minister is mulling the prospect of issuing a computerized ID card at the birth of a child so that the cost borne by the state at every turn can be calculated. It will be akin to a social security benefits card and whether it is free education, medical care or whatever other government service, the cost incurred per individual can then be determined, he noted.
"The idea is not to recover the dues from these citizens but to maintain a record of the cost factor borne by the state per person", he said.
Citing the example of Singapore, Bangsa Jayah said that if a citizen wanted to take up a job overseas, the total cost borne by the government on that individual since his/her birth has to be reimbursed. "We don’t take back even a rupee, and even monies earned by many of these Sri Lankans are deposited in banks in those countries".
"Without any natural resources, Singapore’s way forward was achieving a 95% success rate in education and development of human resources. With a good free education system, why cannot we reach up to this level? Sri Lankans overseas are known to be hard working. They give their best", he emphasized.
Q: Is SLI looking at opening more branches overseas?
We are focusing on Italy where there are 5,000 Sri Lankans. There is scope because insurance is very costly there and we could team up with a local (Italian) collaborator to venture into the market. We closed down our Maldives branch due to poor management and the US$ 250,000 deposit is yet to be recovered.
The Seychelles branch was also wound up because it was a white elephant. An evaluation showed that this branch had been set up in a country with an eighty thousand population and a few vehicles. In this case also, we have to recover the US$ 250,000 deposit.
SLI was in a bad way at one time due to poor management. Even houses were rented and utility bills were also paid from this account. The company was turned around thanks to the expertise of Harry Jayewardena. However, it reverted to the government on a Supreme Court order and we have achieved growth by maintaining the momentum.
Q: What is the position of Grant Hyatt Colombo in which SLI has a big stake?
This hotel project is now in its final stage of completion. It will be ready for operation by February-March 2018. The proposed super luxury complex will comprise 566 keys, including 72 service apartments on 44 floors.
Q: You said SLI maintains a 22% market share?
Yes, in the General segment we are the leaders, but on Life Insurance, one of our competitors enjoy the lion’s share. Other insurance companies share the balance 78% of the market. Foreign insurance companies are taking our money out of the country. SLI is a national asset which belongs to the people of this country. People should be conscious of this factor when they think of insurance.
Q: Is there a ceiling on repatriation of funds by these foreign insurance companies?
I am not sure.
Bangsa Jayah said that SLI signed a tripartite agreement with IBSL (Insurance Board of Sri Lanka) and FEBSL (Foreign Employment Bureau of Sri Lanka) to offer a comprehensive insurance cover to housemaids leaving for employment in Kuwait, where complaints of abuse and harassment are relatively high. On average, 1,000 to 1,200 Sri Lankan women leave to work in this country per month.
This insurance scheme launched as a pilot project in collaboration with the Triple ‘A’ rated Gulf Insurance Company (GIC) is a ‘first’ for Sri Lankan housemaids because it also covers death, permanent disability, hospitalization, repatriation, legal fees in case of a court case and the air ticket. There is no cost to the insured as the employers pay the premium and the commission is shared as management fees between SLI and SLFEB on a 50% basis, he said.
He noted that this scheme will be extended this year to cover other Gulf countries as well. It was initially set in motion in Kuwait because the incidence of abuse of housemaids is high. Some employers retain the passports of housemaids, beat and chase them out. In desperation, they seek refuse at the Sri Lankan Embassy where there were complaints that some of them were later ‘sold’.
The Jt. MD said that around 20,000 migrant workers leave for the Middle East per month. Apart from travel insurance schemes, they don’t have the benefit of a comprehensive policy, which the SLI is now offering to housemaids leaving for Kuwait.
"We should concentrate on sending trained nurses who have a ready market overseas on a starting monthly salary of Rs. 250,000. A private nurses training school will be established on 50-acre land belonging to the JEDB in Kandy. With an intake of 250-300 students, a three-year graduation program is being worked out in collaboration with King’s University of London", Bangsa Jayah noted.
Unlike countries like India, Thailand and Philippines, Sri Lanka has no graduation scheme for nurses. This is a mandatory prerequisite to send qualified nurses overseas for a higher remuneration. They should possess a certificate from a recognized international university to secure these jobs in the global market, he explained.
Expressing optimism of "taking off in a bigger way in 2017", Jt. Managing Director of Sri Lanka Insurance (SLI), T. M. R. Bangsa Jayah, pledged to push ahead with ambitious plans to grow the national footprint of the state-owned giant in the competitive insurance industry as a key stakeholder in the collective drive towards economic prosperity.
With 18% growth in 2015, SLI "ploughed back its profits to society" by contributing Rs. 11 billion to government coffers during that year, a feat no other institution has been able to achieve, he asserted.
"We are positive of breaking new ground through innovative concepts to grow our 22% market share in the insurance industry", he said in an interview with The Sunday Island at SLI’s Vauxhall Street head office in Colombo last week.
After the change of government, Bangsa Jayah, a retired senior police officer, was appointed in February 2015 as Jt. MD of SLI, the country’s biggest government-owned insurance company with a Life Fund of a staggering Rs. 90.5 billion.
Established in 1962 by the then Trade Minister, T. B. Illangaratne, SLI is now a major shareholder of Lanka Hospitals, Litro Gas, LG terminal, Grand Hyatt Colombo, Colombo Dockyard and Ceylon Asset Management.
Bangsa Jayah said that SLI will be celebrating its 55th anniversary on January 20 with a pirith chanting ceremony followed by an alms- giving. The President, Prime Minister and a host of Cabinet Ministers are expected to participate in the ceremony.
Describing the government’s ambitious initiative to provide free health insurance cover to the country’s 2.4 million student population as a "giant step since C. W. W. Kannangara’s historic free education policy", he noted that the novel scheme will be implemented through SLI in collaboration with the Education Ministry with Rs. 2.7 billion in Treasury funding per annum.
Asked whether students will have to pay a premium under the proposed scheme, the Jt. MD replied, "No, it’s absolutely free of charge with the Treasury absorbing the total expenditure for its implementation".
Q: Will students of private schools also be entitled to the insurance cover?
It will cover the whole student population without any discrimination. Parents of all students who attend private schools are not affluent. Sometimes it is a matter of not having a choice and they find it difficult to meet the financial commitments. Private schools will be regulated.
On the modalities of the proposed health insurance policy, he explained that each student will be entitled to a cover of Rs. 1,000 per day for hospitalization either in a government or private medical facility. They will be given an insurance identity card. In the event of the death or permanent disability of the child’s father or mother, a payment will be made to continue the student’s education.
On an average, 160,000 parents within the 25-45 age group die each year. However, no payment will be made under the insurance policy in the event of the death of a student as the objective is to protect the child.
Q: The FCID and the Bribery Commission are probing some alleged irregularities at SLI during the previous regime?
We opened all our books to them and statements are being recorded from some persons. As far as I am aware, a group of individuals is suspected of being involved. The investigation is being done in a professional manner.
Bangsa Jayah stressed that that the HR (Human Resources) structure should be developed to benefit the economy, as done in many other countries. At SLI, 80% of the employees are women. There are other institutions which have a ratio of 85% women in their workforce. Many men are content with driving a three-wheeler. As a government, there should be a cohesive plan to draw them into the mainstream to enhance productivity.
The Finance Minister is mulling the prospect of issuing a computerized ID card at the birth of a child so that the cost borne by the state at every turn can be calculated. It will be akin to a social security benefits card and whether it is free education, medical care or whatever other government service, the cost incurred per individual can then be determined, he noted.
"The idea is not to recover the dues from these citizens but to maintain a record of the cost factor borne by the state per person", he said.
Citing the example of Singapore, Bangsa Jayah said that if a citizen wanted to take up a job overseas, the total cost borne by the government on that individual since his/her birth has to be reimbursed. "We don’t take back even a rupee, and even monies earned by many of these Sri Lankans are deposited in banks in those countries".
"Without any natural resources, Singapore’s way forward was achieving a 95% success rate in education and development of human resources. With a good free education system, why cannot we reach up to this level? Sri Lankans overseas are known to be hard working. They give their best", he emphasized.
Q: Is SLI looking at opening more branches overseas?
We are focusing on Italy where there are 5,000 Sri Lankans. There is scope because insurance is very costly there and we could team up with a local (Italian) collaborator to venture into the market. We closed down our Maldives branch due to poor management and the US$ 250,000 deposit is yet to be recovered.
The Seychelles branch was also wound up because it was a white elephant. An evaluation showed that this branch had been set up in a country with an eighty thousand population and a few vehicles. In this case also, we have to recover the US$ 250,000 deposit.
SLI was in a bad way at one time due to poor management. Even houses were rented and utility bills were also paid from this account. The company was turned around thanks to the expertise of Harry Jayewardena. However, it reverted to the government on a Supreme Court order and we have achieved growth by maintaining the momentum.
Q: What is the position of Grant Hyatt Colombo in which SLI has a big stake?
This hotel project is now in its final stage of completion. It will be ready for operation by February-March 2018. The proposed super luxury complex will comprise 566 keys, including 72 service apartments on 44 floors.
Q: You said SLI maintains a 22% market share?
Yes, in the General segment we are the leaders, but on Life Insurance, one of our competitors enjoy the lion’s share. Other insurance companies share the balance 78% of the market. Foreign insurance companies are taking our money out of the country. SLI is a national asset which belongs to the people of this country. People should be conscious of this factor when they think of insurance.
Q: Is there a ceiling on repatriation of funds by these foreign insurance companies?
I am not sure.
Bangsa Jayah said that SLI signed a tripartite agreement with IBSL (Insurance Board of Sri Lanka) and FEBSL (Foreign Employment Bureau of Sri Lanka) to offer a comprehensive insurance cover to housemaids leaving for employment in Kuwait, where complaints of abuse and harassment are relatively high. On average, 1,000 to 1,200 Sri Lankan women leave to work in this country per month.
This insurance scheme launched as a pilot project in collaboration with the Triple ‘A’ rated Gulf Insurance Company (GIC) is a ‘first’ for Sri Lankan housemaids because it also covers death, permanent disability, hospitalization, repatriation, legal fees in case of a court case and the air ticket. There is no cost to the insured as the employers pay the premium and the commission is shared as management fees between SLI and SLFEB on a 50% basis, he said.
He noted that this scheme will be extended this year to cover other Gulf countries as well. It was initially set in motion in Kuwait because the incidence of abuse of housemaids is high. Some employers retain the passports of housemaids, beat and chase them out. In desperation, they seek refuse at the Sri Lankan Embassy where there were complaints that some of them were later ‘sold’.
The Jt. MD said that around 20,000 migrant workers leave for the Middle East per month. Apart from travel insurance schemes, they don’t have the benefit of a comprehensive policy, which the SLI is now offering to housemaids leaving for Kuwait.
"We should concentrate on sending trained nurses who have a ready market overseas on a starting monthly salary of Rs. 250,000. A private nurses training school will be established on 50-acre land belonging to the JEDB in Kandy. With an intake of 250-300 students, a three-year graduation program is being worked out in collaboration with King’s University of London", Bangsa Jayah noted.
Unlike countries like India, Thailand and Philippines, Sri Lanka has no graduation scheme for nurses. This is a mandatory prerequisite to send qualified nurses overseas for a higher remuneration. They should possess a certificate from a recognized international university to secure these jobs in the global market, he explained.
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