Rs. 1.9 b April bonanza for Ceylinco Life policyholders
Friday, 28 March 2014 00:00
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More than 342,000 policyholders of Ceylinco Life will have an extra reason to celebrate this April, with the life insurance leader’s announcement of a bonus pay-out of Rs. 1.945 billion.
Of these, 328,000 policyholders will receive Rs. 1.9 billion in the form of bonus certificates which will enhance the value of their policies.
Additionally, 13,405 policyholders, who are also eligible for annual bonuses, will receive Rs. 45 million in cash bonuses delivered to their homes as a reward for their loyalty.
These cash bonuses in the form of immediately encashable cheques are to be delivered between 10 and 14 April and will make some policyholders richer by as much as Rs. 250,000, the announcement said.
“This is the 11th consecutive year that Ceylinco Life is paying cash bonuses, a practice we pioneered in 2004,” the company’s Managing Director/CEO R. Renganathan said. “This is the highest cash bonus pay out to date, and is made possible by the financial strength of the company and its commitment to share its success with policyholders.”
For the first time this year, Ceylinco Life will have policyholders who have completed 25 years with the company. The cash bonuses for these policyholders will be computed at Rs. 100 for every Rs. 1,000 of the sum assured. As in previous years, policyholders who have completed 20 years are eligible to receive a cash bonus computed at Rs. 75 per Rs. 1,000 sum assured, those who have completed 15 years Rs. 50 per Rs. 1,000 sum assured and who have completed 10 years Rs. 25 per Rs 1,000 sum assured.
On this basis, a participating policy with a sum assured of Rs. 1 million will be entitled to a cash bonus of Rs. 25,000 on completion of 10 years, Rs. 50,000 on completion of 15 years, Rs. 75,000 on completion of 20 years and Rs. 100,000 on completion of 25 years.
With this year’s cash bonus payments, the cumulative value of cash bonuses paid by Ceylinco Life every April over the past 11 years exceeds Rs. 302 million.
The Rs. 1.9 billion being paid out as annual bonuses this year is in respect of the surplus generated by Ceylinco Life’s Life Fund in FY 2013, during which the company made a net transfer of Rs. 7.655 billion to the fund, taking it to Rs. 52.765 billion as at 31 December 2013. As in previous years, even policyholders who purchased their policies in December 2013 will be eligible to receive a bonus, in line with the company’s policy of declaring bonuses from the very first year of issue of a policy.
This year, recipients of annual bonuses will also be offered an opportunity to purchase or enhance their medical cover, and five lucky policyholders drawn from those who respond before 31 May 2014 will each win a package tour to Malaysia, the company said.
Independently rated one of Sri Lanka’s most valuable brands, Ceylinco Life has maintained its leadership of the country’s long term insurance sector from 2004 onwards. The company operates the largest branch network among local life insurance companies, and has won multiple international and local awards for its commitment to the community and success in brand equity building.
