Frequently Asked Questions

The Insurance Regulatory Commission of Sri Lanka (IRCSL), the independent body set up by the Government to regulate the insurance sector in Sri Lanka, was established with effect from 1st March 2001 by promulgation of the Regulation of Insurance Industry Act, No. 43 of 2000 (the Act) for the purpose of development, supervision and regulation of the Insurance Industry in Sri Lanka. The object and responsibility of the Commission is to ensure that insurance business in Sri Lanka is transacted with integrity and in a professional and prudent manner with a view to safeguarding the interests of the policyholders and potential policyholders.

Insurance companies, Insurance Intermediaries (Agents and Insurance Brokering Companies) and Loss Adjusters are regulated by the IRCSL.


Twenty Nine (29) insurance companies (Insurers) registered with the Insurance Regulator Commission of Sri Lanka, are presently underwriting insurance business. Three (03) of them are composite companies transacting both Long Term Insurance and General Insurance business whilst fourteen (14) of them engage in General Insurance business and twelve (12) companies engage only in Long Term Insurance business. (However, one (01) insurance company is no longer accepting any new insurance business and is in the process of exiting from Sri Lanka.) Click to view details...

 You should only deal with companies who are registered with the IRCSL.

An insurance broker is a company incorporated under the Companies Act, No. 07 of 2000 and registered under the provisions of the Act in order to carry out insurance brokering business, and who functions as an intermediary for the placing of insurance business for or on behalf of an insurer, a policyholder or a proposer for insurance or reinsurance, with an insurance company or reinsurance company, in expectation of a payment by way of brokerage or a commission.

A person registered as an insurance agent with an insurance company or insurance brokering company under the provisions of the Act, and who in consideration of a commission, solicits or procures insurance business for such insurance company or insurance broker, as the case may be. The provisions of the Act stipulate minimum qualifications that an individual should possess and passing a pre-recruitment test conducted by Sri Lanka Insurance Institute (SLII) in order to become an agent.

An insurance agent is appointed by an insurance company or an insurance brokering company. Identity Card issued by the insurance company or the insurance broker is the proof that he/she is entitled to procure insurance business on behalf of the insurance company or the insurance brokering company. If you have concerns regarding the person, you could verify from the insurance company or the insurance brokering company who appointed the agent.

You should obtain a receipt for your premium payment from the insurance company. Generally, insurance agents are not allowed to issue receipts on behalf of the insurance company. Therefore you should endeavour to obtain a receipt issued by the insurer through the insurance agent for the premium payment you made to him. In the event, the premium due is not paid within the days of grace; your policy may lapse, depending on the condition laid down in the policy.

A proposal form is generally designed in the form of a questionnaire and requires full disclosure of information requested therein. For example, if the proposal is for a Life Insurance Policy, you are required to furnish facts material to your health (past and pre-existing medical conditions), occupation, habits and pursuits in addition to personal details. It is essential that questions should be answered truthfully and to the best of your knowledge and belief. In the event of a doubt of the relevancy of particular facts, it is in your best interest to disclose them.

The particulars contained in a proposal form will be assessed and evaluated by the insurance company before accepting the offer made by you. Therefore, failure in disclosing all pertinent information would deprive the insurance company of a proper understanding of the risk to be borne by them.  Further, an insurance proposal form is of utmost importance as it forms the basis of a contract of insurance, and non-disclosure or misrepresentation of facts will result in the repudiation of future claims.

It is advisable to fill the proposal form by yourself and never sign a blank proposal form.

Yes, you should. It is very important to read the terms and conditions in the policy document.

The surrender value of a policy is the amount payable to you at a particular point in time if you wish to cancel the policy after a period of three years. If you maintain a life insurance policy for a minimum period of three years continuously, it acquires a cash value, known as a surrender value. This is the cash entitlement available if you decide to cancel a life policy before the maturity date. The amount one person obtains, as surrender value is a portion of the premiums paid less expenses, part of the premium that provided the life cover & premium paid in respect of rider benefits and not a portion of the sum assured.

If Premiums are not paid after the policy has acquired a surrender value, it becomes a ‘Paid Up Policy’. The Policy will continue to remain in force for a reduced sum assured, which is determined on the basis of the premium paid. It is proportionate to the premium already paid on a policy as against the total sum assured. The ‘Paid Up’ amount is payable either at maturity to the life assured or to the beneficiaries at an early death of the life assured.

First thing you should notify the insurance company as specified in your policy document. Failure to notify within the specified period may deprive you of your right to claim. In the event of any medical treatment/hospitalization, please obtain the medical reports/diagnosis cards before you leave the doctor/hospital; it would be difficult to visit the doctors again. You must also cooperate with the representative appointed by the insurance company to investigate and assess the loss.

Yes. If your claim has been rejected by an insurance company and you are aggrieved by such decision, you may contact IBSL.


Or you may write to IRCSL.

Director General
Insurance Regulatory Commission of Sri Lanka
Level 11, East Tower
World Trade Centre
Echelon Square
Colombo 01.

Telephone:  011 2396184-9
Fax:  011 2396190
E-mail – This email address is being protected from spambots. You need JavaScript enabled to view it.
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Insurance Regulatory Commission
of Sri Lanka
Level 11, East Tower
World Trade Centre
Colombo 01
Telephone: 011 2396184 - 9 (General)
                 011 2335167      (Complaints)
Fax: 011 2396190


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