FARAZ SHAUKETALY
The recent investigation by CIABOC – Bribery Commission – into alleged fraudulent activities by an insurance company has triggered a deep sense of disgust at what is alleged.
This disgust is heightened due to the inherent trust policyholders have in their chosen insurance company. When a motorist takes out a motor insurance policy, trust and integrity play a significant role. The motorist trusts the insurance company to provide coverage and financial protection in case of accidents or damages. They rely on the insurer to handle claims fairly and efficiently.
The insurance company is expected to act with integrity, providing clear policy terms, transparent claims processes, and fair settlements.
In Sri Lanka, insurance companies are regulated by the Insurance Regulatory Commission of Sri Lanka (IRCSL), which aims to promote fair practices and protect policyholders’ interests.
The allegation is that compromised Government Analyst reports were used to deny claims made by policyholders.
It is absolutely essential that a full forensic audit be engaged in to fully investigate the insurer, its officers, the role of the insurance regulator IRCSL, and other drivers of this significant fraudulent activity which has brought the industry into disrepute – costing policyholders huge sums of monies along the way.
It goes without saying that the Insurer in question must be held accountable and be forced to pay up on all claims that have been compromised by the purported use of compromised Analysts’ reports.
The alleged actions of this insurer – setup by a commercial tycoon of yesteryear, Harry Jayawardena – honestly, beggars’ belief.
It is alleged that the company sought to financially benefit and inter alia deliver outstanding results. Except of course that they allegedly did so by inducing an officer of the state – a government analyst – to provide blatantly false analyst reports to unlawfully gain advantage and intentionally defraud the policyholders.
A robust investigation and a trial thereafter may reveal that on these two counts alone, those responsible must be given the maximum custodial sentences provided under the law.
Corporates cannot simply blame it on the paid help. It too must be made to pay significant reparations, be given a compulsory suspension, be subject to a forensic audit of claims rejected using the compromised Analysts’ reports and a refund of premium plus compensation of several multiples of the original claim. If such action leads to the winding up of the company – then so be it and let the controlling shareholder pay up.
In all of these we must also ask what pro-active role the regulator has been playing or not. This is why we ask for a full forensic analysis of this alleged major fraud, major departure of due process.
It appears that even in death the questionable legacy of Harry Jayawardena continues to haunt and adversely impact the people of Sri Lanka. Harry had a penchant for being the lead editor of calling people names often without basis. We wonder how he would brand the implementer of this dastardly and heinous act? Especially as it was Harry who co-founded the company along with the man now remanded.
The crimes and or questionable acts raised here are all allegations. Collectively we look forward to a comprehensive and robust investigation, including a full forensic analysis in which not only ‘small fish’ will be in the net and held accountable but the ‘sharks and whales will also face the full force of the law and corporate sanctions and penalties also be levied. The range of the crime – if found guilty – is comprehensive. Were personal taxes paid, were all and any assets gained declared to the IRD. In essence with this government of change committed to accountability and upholding the law, we can but look forward to an unchallenged, definitive legal conclusion.
