A low cost insurance scheme that will protect micro borrowers has been launched by Commercial Bank of Ceylon in association with two insurance companies, Ceylinco Insurance and BIMA.
The policy will cover the borrowers against accidental death or permanent disability, compensate for loss of income due to hospitalisation and also contribute towards funeral expenses.
Monthly premiums of Rs 150, Rs 300 and Rs 600 respectively for the Silver, Gold and Platinum categories of the scheme provide accident cover of Rs 1 million, Rs 2 million and Rs 4 million, with life cover of Rs 50,000, Rs 100,000 and Rs 150,000, the Bank said.
“This scheme is yet another example of our commitment to the wellbeing and protection of our customers in the micro enterprise segment,” Commercial Bank’s Deputy General Manager (Personal Banking) Mr Chandana Gunasekera said. “Today’s micro borrowers can be small or medium enterprises in just a few years with the right support, and Commercial Bank is committed to provide that support.”
The issuing of insurance cover will be done by Ceylinco Insurance PLC and Melvik Lanka (branded as BIMA), a mobile insurance provider that will handle the sales, technical implementation and claims administration. Depending on the demand for the product, the Bank said it may locate representatives of BIMA at branches where the potential is high.
Policyholders will be entitled to daily payments ranging from Rs 1,000 to Rs 3,000 for every day spent at a hospital up to a maximum of 20 days to cover their loss of income due to an illness or accident under this scheme.
In the event of accidental death of a policyholder, payments of Rs 25,000 to Rs 100,000 will be made towards funeral expenses, and the insurance proceeds may be utilized to settle the outstanding loan.
Commercial Bank already has a large micro saver/borrower client base served by its existing Bancassurance facility. The new scheme is an extension of these services, the Bank said.
Commercial Bank operates a network of 243 branches and 613 ATMs in Sri Lanka and is the country’s largest private bank. Ranked the most valuable private sector brand in the country in 2014, the Bank was adjudged the Best Bank in Sri Lanka by FinanceAsia and Euromoney in 2015. Commercial Bank has also won multiple awards as Sri Lanka’s best bank from other international publications over several years. The Bank was adjudged one of Sri Lanka’s 10 best corporate citizens by the Ceylon Chamber of Commerce in 2013 and 2014, and has been rated the Most Respected Bank in Sri Lanka by LMD for the past 10 years. The Bank has also been the second Most Respected Corporate entity in the country overall for the past four years in the LMD rankings, and has been rated No. 1 in Sri Lanka for Honesty in 2013 and 2014 by the magazine.
