By: Isuru Parakrama
Colombo (LNW): In an event of paying insurance claims on vehicles that are under hire purchase or lease agreements, ‘no-objection’ letters will not be needed, the Insurance Regulatory Commission of Sri Lanka (IRCSL) said in a statement yesterday (22).
Accordingly, the IRCSL informed insurance companies not to collect ‘no-objection’ letters from financiers to settle insurance claims on such vehicles, stressing that “motor insurance policies specify that partial loss claims to motor vehicles under hire purchase/lease agreements be paid to policyholders.”
“We have been informed of instances where policyholders were insisted upon to furnish No-Objection Letters from their financiers to obtain insurance claims. Accordingly, the Insurance Regulatory Commission of Sri Lanka has informed insurance companies issuing motor insurance policies, not to require such policyholders to submit ‘No-Objection’ letters from financiers of vehicles, to pay insurance claims,” IRCSL said in its statement.
