Recent terrorist attacks : NITF to settle claims valued at Rs. 500 m | Sunday Observer

Recent terrorist attacks : NITF to settle claims valued at Rs. 500 m

The National Insurance Trust Fund (NITF) expects to settle claims forwarded by policy holders amounting to Rs. 500 million related to the recent Easter Sunday attacks.

“The Fund will settle the claims after the assessment process is finalised.

The Cinnamon Grand and Kingsbury, the two hotels that were affected by the attacks will be paid compensation to a maximum limit of Rs. 225 million each.”

We have already given an advance of Rs. 25 million each to both the hotels to commence initial renovation work.

The final payment will be made after the full assessment of the damage is completed,” Chairman National Insurance Trust Fund, Manjula de Silva said.

The NITF, being the only insurer against man-made disasters, has a liability of around Rs. 100 million every year since the end of the war in 2009.

“This year is exceptional as we have to settle claims to the tune of Rs. 500 million.

However, apart from the two holes, we also will settle claims by other policy holders who have terrorism cover in their policies. Other than these payments, the government too is expected to pay compensation,” he said.

The NITF, a government funded scheme, also covers natural disasters such as floods, droughts, cyclones and tsunamis. In 2016 it paid out Rs. 3.5 billion, while in 2017 the total was Rs. 2.2 billion and paid Rs. 1 billion last year.

“We have settled more claims under the natural disaster settlement scheme. There is a Rs. 15 billion cover for all households and small enterprises with a turnover of less than Rs. 10 million under this scheme. Each person is covered and dependents have a cover of Rs. 100,000 as compensation. The businesses are covered up to Rs. 2.5 million and will be paid according to the extent of the damage,” he said.

“The Fund also provide emergency relief in case of a natural disaster to the people who are uninsured. This includes people who are displaced and living in relief centres where shelter cost, food and basic necessities are also borne by the fund,” he said.

The NITF has an insurance scheme for government servants under the Agrahara insurance scheme. The Fund paid Rs. 3.2 million covering the recent incident at Dematagoda where three policemen were killed due to a bomb blast. The payment was made according to the cover that each policeman had taken.