Highlighting that life insurance penetration was low in Sri Lanka, a senior insurance expert requesting for a helping hand from the government said that imposing new taxes would hamper future growth.
"The Inland Revenue Act clearly states, the bonus given to their customers by insurance companies is not subject to tax. But according to the new proposal this bonus is also subject to tax. This is not helping the industry," Ceylinco Life Managing Director and Chief Executive Officer R. Renganathan stressed.
Answering a question at the National Forum for Life Insurance Advisors (NAFLIA), Renganathan stressed, "If the current rate continues, it will take more than 17 years to sell life insurance policies to our labour force of 8.5 million. We need to improve the productivity and speed up the process. However, the insurance sector alone cannot reach this target. We need a helping hand from the government'.
He also mentioned that the Insurance Board of Sri Lanka (IBSL) has a major responsibility to take this message to the government.
Sri Lanka is heading towards an era in which the population aging is going to be a major concern. Life Insurance will have a significant role to play when it comes to welfare of these aged people. With frequent occurrence of natural disasters, the risks in the life of normal people are also increasing. Therefore, supporting the industry will create long term benefit to the national economy.