Teachers Associations complains that Suraksha Insurance Scheme, which was launched to support 43 lakhs school children, is a project which nurtures insurance companies and does not ensure children’s safety.
Ceylon Teachers’ Union complains that the Minister of Education provides benefits to various companies while violating circulars.
Rs 2700 million has been allocated for Suraksha Insurance Scheme from the national budget. However, the value of benefits rendered for children up to June is only Rs 52 million. Although there is no risk with regard to school children’s safety, 90% of the insurance scheme has been reinsured with an Indian firm.
To hide this, Minister of Education said a commission of Rs 100 million has been received from reinsurance and Ceylon Teachers’ Union highlights that is an illegal act. As per the 4/2015 circular issued by the Ministry of Finance, no commission can be accepted from insurance processes between state institutions, and the Ministry of Education has violated the circular.
Although the government pays Rs 12 billion to National Insurance Trust Fund each year for government employees’ trust fund, it has not been reinsured. Teachers’ Associations question the reason why the funds of Suraksha Insurance have been reinsured, when such a massive amount has not been insured. Minister of Education had stated that the above commission will be increased to Rs 500 million, however accepting commissions is still illegal.
Although it was initially announced that this insurance scheme will provide Rs 2 lakhs insurance money, Ceylon Teachers’ Union says it is untrue, and minister’s statement which said the above amount will be increased up to Rs 5 lakhs, cannot be trusted.
Ceylon Teachers’ Union has requested the President to investigate the Suraksha Insurance Scheme.