PARLIAMENT

• COPE chair appreciates the progress
• Recommendations to maintain as a competitive organization
• A former chairman and the board of directors also summoned and questioned regarding a previous decision
• Proposals to expedite of insurance claims
• Directions to improve customer service

The National Insurance Trust Fund (NITF) under the Ministry of Finance was summoned to the Committee on Public Enterprises (COPE) which met on 03.10.2023 under the chairmanship of  Member of Parliament Hon. (Prof.) Ranjith Bandara.

The implementation of the recommendations given to the NITF in the COPE meeting held on 11.05.2023 was reviewed at this meeting. Deputy Secretary to the Treasury Mr. Sarath Kumara, Chairman of NITF Attorney-at-Law Mrs. Sagala Abeywickrama, Chief Executive Officer Mrs. Gamani Liyanarachchi and a group of officials participated in this committee. Also, the former board of directors including the former chairman of NITF Mr. Senaka Abeygunasekara, was also summoned to this meeting to inquire about a decision given previously.

The COPE chairman commended the NITF officials for the progress made by the institution by following the recommendations given at the previous COPE meeting and drew attention to the following points.

Filling up of existing vacancies including key management positions

The Chief Executive Officer pointed out that the vacancies in the existing positions are being filled. But it was also revealed that no suitable applicant has come forward for the post of Manager (Reinsurance) based on the existing salary scale. Thus, the chairman of the committee directed the Deputy Secretary to the treasury to take a common policy decision to increase the salary scale to suit certain positions in the public service.

Also, the officials said that approval has been granted for the establishment of a Risk Management Division and a related post.

Customer Call Management

The committee reiterated the need for an efficient Customer Call Management Unit to be set up as soon as possible. By August 2023, it was revealed that 58% of calls received by the call center were answered, but 42% could not be answered. It was also revealed that requests have been made to the Management Services Department for a permanent staff of 15 individuals. Accordingly, officials were directed by committee chair to take immediate action to develop said call center. The NITF chairperson said that Monday has been allotted as a special public service day and a special telephone number has also been introduced for the customer service.

Delay in insurance claims

There was a huge public allegation since it took 200-240 days for insurance claims and now it was revealed that the claim process is being completed within a period of 40 days. The committee instructed the officials to reduce this period to 10 days. The NITF chairperson said that there are some delays only for incomplete applications. Thus, the need to conduct awareness programs among government officials to bring applications without defects was pointed out.

Revenue improvement strategic plan

Under the new income improvement strategic plan, measures are expected to be taken including introducing a new Platinum Insurance Policy, introducing insurance schemes for migrant workers, introducing insurance schemes for foreign tourists coming to Sri Lanka, and introducing insurance schemes for new institutions such as universities, the chairperson said.

As it was observed in the COPE meeting that this institution is going towards a great decline, it has been recommended to the Ministry of Finance to submit further proposals related to the institution. Accordingly, the Ministry has submitted proposals to affiliate this institution with the Sri Lanka Insurance Company, the COPE Chairman said.

But the NITF chairperson emphasized that the institution can be raised to a better place by working along the lines of the new strategic plan. Also, the committee advised to improve the Motor underwriting which is currently run at a loss and maintain it in a profitable condition.

Apart from this, attention was also paid to the preparation of an Integrated Computer System. Thus, the committee recommended that this work be handed over to a suitable institution through a consultant.

Questioning the former chairman

In addition, attention was drawn to the fact that although the fund should receive 100% of the money obtained from all insurance covers issued by insurance companies regarding strikes, riots and terrorist activities, receiving only 12%. Mr. Senaka Abeygunasekara, who was a former chairman, was also summoned to inquire about this matter and stated that this was a decision taken even before him. The committee chair informed the Auditor General to look into the matter further.

Apart from this, matters were also discussed with regard to the current performance of the institution including Marketing and Promotion.

State Minister Hon. Janaka Wakkambura, Members of Parliament Hon. Mahindananda Aluthgamage, Hon. Nimal Lanza, Hon. Jayantha Samaraweera, Hon. Sanjeeva Edirimanna, Hon. (Major) Sudarshana Denipitiya, Hon. Premnath C. Dolawatta, Hon. Upul Mahendra Rajapaksa, Hon. M. Rameswaran, Hon. Madura Withanage and Hon. (Prof.) Charita Herath were present at this committee meeting.