Court orders trial against foreign insurance broker for securing local reinsurance tender

Thursday, 26 February 2026 03:08 - - {{hitsCtrl.values.hits}}

The Fort Magistrate’s Court yesterday overruled preliminary objections raised by Tysers Insurance Brokers Ltd., an international insurance broking firm, and fixed for trial a case in which Tysers was accused of violating the Regulation of Insurance Industry Act.

Tysers was accused of being granted a tender from the National Insurance Trust Fund (NITF), the local body in which all local insurance companies reinsure their Strike, Riot and Civil Commotion insurance claims.

The foreign insurance broker was granted the NITF reinsurance tender for the year commencing 1 November 2024. The premium to be paid by the NITF for the reinsuring contract was calculated to be close to Rs. 1 billion.

The tender award raised controversy after Tysers used George Steuart Ltd. as an agent at the bid opening in August 2024. Thereafter, Tysers Insurance was granted the tender for the year 2024/2025.

Strategic Insurance Brokers Ltd., a local insurance broker company, filed action in the District Court and the Fort Magistrate’s Court against the award.

The local insurance brokers argued that the Regulation of Insurance Industry Act prevented entities which were not registered in terms of the Act from participating in any tenders or acting as agents in Sri Lanka.

Tysers Insurance raised an objection to standing in a criminal proceeding, stating that they were permitted to bid for the tender.

However, Fort Magistrate Isuru Neththikumara in an order delivered today overruled the objection by Tysers Insurance and held that Section 92 of the Act prevented any person carrying on business without being duly registered and fixed the matter for trial on 25 March. Accordingly, Tysers Insurance is to stand trial for violating the law and, if found guilty, could be punished with a fine or imprisonment.

Hafeel Farisz with Shannon Tillekeratne, instructed by Sanduni Rathnayake, appeared for Strategic Insurance Brokers Ltd., while Nalinda Indathissa, PC, with Asith Siriwardena, instructed by FJ&G de Saram, appeared for Tysers Insurance Brokers Ltd.