The Insurance Regulatory Commission of Sri Lanka has announced that the credit period granted to vehicle owners for motor insurance payments will be reduced to 30 days with effect from May 1.
According to a circular issued by the commission, the current credit period of 60 to 90 days will be shortened as part of efforts to strengthen industry discipline.
Speaking at a recent media briefing, IRCSL Chairman Lasitha Wimalaratne said the move is in line with international standards, where insurance coverage is typically provided only after payment is made.
“In developed markets, payment is usually made before coverage. As part of strengthening industry discipline, we are moving towards that model. Accordingly, from May 1, the credit period for motor insurance will be limited to 30 days,” he said.
The commission also noted that steps are being considered to eventually eliminate the credit period entirely, transitioning fully to a pre-payment system for insurance coverage.
