RS. 100 MILLION COMMISSION EARNED FROM STUDENT’S INSURANCE: CTU

The General Secretary of the Ceylon Teachers Union (CTU) Joseph Stalin yesterday charged that a group of persons had obtained Rs 100 million commission in the process of re-insuring Suraksha Insurance scheme initiated by the government for the benefit of school children with an Indian Insurance company.

He said further that Rs. 2700 million had been allocated for the scheme from the Budget and the Sri Lanka Insurance Corporation should place the true facts before the people how 90% of this sum had been re-insured with an Indian Insurance company under no risk basis. Stalin also said that the Minister of Education Akila Viraj Kariyawasam had made a statement to the effect that they had received a commission of Rs.100 Million after the reinsurance was done with the Indian Insurance company. He also stressed that under the Finance Ministry Circular number 04 of 2015 that a state institution cannot earn any commission while obtaining a protection cover under an Insurance. Therefore he demanded to know to whose account this commission had been credited. The Minister had said further that on receipt of this commission a fund amounting to Rs 500 million would be set up and inquired as to what purpose this fund is to be created.

Stalin also said that 4.3 million school children are receiving education in schools and the percentage of those falling ill remains low. Therefore after allocating Rs 2700 million for an Insurance scheme for these children re-insuring with an Indian company cannot be approved.

Joseph Stalin said that he had requested these details from the Sri Lanka Insurance Corporation under the Right to Information Act to which the Chairman of the Corporation Hemaka D.S. Amarasuriya had declined to reveal any information saying that the matters raised in the letter are of a very sensitive nature.