The Insurance Regulatory Commission of Sri Lanka (IRCS) has announced that the credit period granted to vehicle owners by insurance companies when providing motor insurance coverage will be reduced to 30 days.
In a circular, the Commission said the amendment will take effect on May 1.
Currently, vehicle owners have been allowed a credit period of 60 to 90 days to settle their insurance payments.
Addressing a recent media briefing, the Insurance Regulatory Commission of Sri Lanka said that steps will be taken to abolish this credit period in the future.
Association Chairman Lasitha Wimalarathna told the media that the industry is moving towards international standards where coverage is issued only after payment.
“In developed markets, payment generally precedes coverage. As part of strengthening discipline in the industry, we are moving towards that model. Accordingly, from May 1, the credit period for motor insurance will be limited to 30 days,” Wimalarathna stated. (Newswire)
