Ceylinco Takaful registration suspended

The Insurance Board of Sri Lanka (IBSL) has suspended the registration of Ceylinco Takaful Limited in respect of General Insurance Business in terms of Section 18 of the Regulation of Insurance Industry Act No. 43 of 2000 for a period of three weeks with effect from August 5.

Accordingly, Ceylinco Takaful Limited is prohibited from issuing new insurance policies in respect of General Insurance Business until the suspension is removed and informed in writing to Ceylinco Takaful Limited by the IBSL, sources said.

A renewal of an insurance policy in respect of General Insurance Business is considered as a new contract/new insurance policy.

In terms of Section 18 (2) of the Regulation of the Insurance Industry Act No. 43 of 2000, Ceylinco Takaful Limited is required to fulfil its obligations for insurance policies already issued.

Until the IBSL informs otherwise, the suspension imposed hereby on Ceylinco Takaful Limited remains unchanged till 4.30 p.m. on August 26, 2009, IBSL said.

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