The Government has decided to reduce the insurance coverage for Members of Parliament from Rs. 1 million to Rs. 250,000, effective from the insurance year commencing October 9, 2025, Cabinet Spokesman and Mass Media Minister Dr. Nalinda Jayatissa announced.
Speaking at the weekly Cabinet media briefing held yesterday (August 5), Dr. Jayatissa said the proposal follows a recommendation made by President Anura Kumara Dissanayake during the 2025 Budget speech, which called for a reduction in MPs’ insurance benefits.
He noted that a group insurance policy with a maximum annual coverage of Rs. 1 million per MP had been implemented following Cabinet approval on May 15, 2023. However, in line with the President’s directive to rationalise public expenditure, the benefit will now be limited to Rs. 250,000 per MP per insurance year.
The Cabinet of Ministers has approved the proposal presented by the Minister of Public Security and Parliamentary Affairs to enforce this change.
Dr. Jayatissa also revealed that the existing insurance service provider will be discontinued, and a new insurance provider will be selected through an open process among interested institutions to implement the revised policy.
