Insurance claims over Easter Sunday attacks to be below Rs. 500 m

• NITF releases Rs. 3.2m for Agrahara claims; Rs. 25 m each to The Kingsbury and Cinnamon Grand
• Ceylinco General Insurance pays $ 1 m advance to Shangri La Colombo

By Charumini de Silva

The National Insurance Trust Fund (NITF) expects total claims over damage of property and lives following the Easter Sunday terror attacks to be less than Rs. 500 million though a final assessment is still pending.

“We have expedited all the claims and assessments. Right now an Independent Loss Adjuster is quantifying the total damage of the two major hotels — The Kingsbury and Cinnamon Grand in Colombo,” NITF Chairman Manjula de Silva told the Daily FT.

He pointed out that the two hotels Cinnamon Grand and The Kingsbury had taken a policy with a cap of Rs. 250 million, where 10% was deductible.

Therefore, he said the maximum amount NITF could provide to these two hotels was Rs. 450 million, while noting that there could be additional claims, albeit for smaller amounts, particularly for vehicles that may have been damaged in the explosions where they believe those claims will not exceed Rs. 50 million.

However, the NITF believes that the total claims will not exceed Rs. 500 million.

The other hotel that was bombed was Shangri-La, Colombo, was also paid an advance of $ 1 million by Ceylinco General Insurance in collaboration with Chubb Insurance, USA on 25 April, to commence repairs. Further assessments of the extent of damage will be carried out by a loss adjuster, appointed by the reinsurer in consultation with Ceylinco General Insurance.

In terms of personal insurance, although NITF had been expecting more claims from the victims or families who could have attended the Easter Sunday mass at churches as well as from those who were in the three hotels, he said that no claims had been made so far, while requesting claimants to contact NITF in the event of any claims.

He also said that they were expecting some workmen compensations from the Easter Sunday attack that killed over 250 and injured over 500 people.

Chairman De Silva also said NITF had disbursed a total of Rs. 3.2 million under the Agrahara Insurance scheme for Government sector employees and their families who lost their lives owing to the Easer Sunday attacks.

“Depending on their Agrahara policy limitations, we have already provided a total of Rs. 3.2 million for the three Police officers who died during a search operation in Dematagoda on Easter Sunday,” the NITF Chief added.

Agrahara Insurance scheme was introduced by the Ministry of Public Administration Circular No: 5 /1997 and this scheme was under NITF from 1 January 2006.

Meanwhile, Prime Minister Ranil Wickremesinghe in his capacity as Minister of National Policies, Economic Affairs, Resettlement and Rehabilitation, Northern Province Development and Youth Affairs has submitted a Cabinet Memorandum dated 22 April to provide a compensation package for deaths and injuries due to this unexpected violence.

According to this special compensation package, for deaths the compensation will be Rs. 1 million, while those who suffered disabilities or injuries in the incident will be paid a maximum of Rs. 500,000, depending on their loss of earning capacity or the disability mentioned in the medical certificate issued by the Government Medical Officer. 

Further, private properties damaged will be paid compensation based on the Government Chief Valuer’s valuation subject to a maximum of Rs. 5 million.