Wijeyadasa adds to damaging evidence on student insurance scheme
Posted on May 23rd, 2019

By Rathindra Kuruwita Courtesy The Island

article_image

A feasibility study had not conducted before presenting the Cabinet Paper on Suraksha Insurance scheme, which was introduced to cover schoolchildren, former Minister Dr. Wijeyadasa Rajapakshe yesterday informed the Presidential Commission of Inquiry (PCoI) to investigate corruption of the current administration.

The Cabinet paper for the Suraksha insurance scheme was jointly presented by Prime Minister Ranil Wickremesinghe and Education Minister Akila Viraj Kariyawasam.

“The decision to introduce an insurance policy for the students came from the Prime Minister and the Education Minister. Before making such a big project that will use government funds, there should have been a feasibility study before presenting it to Cabinet,” he said.

Rajapakshe also said that the insurance should have been managed by the Health Ministry and that the Education Ministry had no jurisdiction or expertise to carry out such a project.

During the first six months of implementation, the Education Ministry had received only Rs. 160 million worth of claims. However the Ministry had transferred Rs. 2.7 billion to Sri Lanka Insurance Corporation (SLIC).

“The Ministry only has to spend around Rs.300 million per year to cover all students but the Ministry had earmarked Rs.2700 million of public money for the insurance policy,” he said.

Last week, the National Organizer of the Trade Union of Graduate Employees Prasad Marasinghe told the PCoI that Education Minister Akila Viraj Kariyawasam and Petroleum Resources Minister Kabir Hashim were responsible for the misuse of Rs. 2,430 million in government funds due to the re-insuring ‘Suraksha’ insurance policies of schoolchildren with a reinsurance company in India.

“The Ministry spends approximately Rs. 285 million per year on the insurance cover for all students in the country. However, the Ministry obtains public funds amounting to around Rs. 2,700 million for the insurance scheme,” he said.

Marasinghe told the Commission that he was employed at the Health and Nutrition Division of the Education Ministry and the insurance scheme was handled by that division.

“We had several discussions with Director of Health and Nutrition Division and Chairman of Suraksha Committee Renuka Peiris. We pointed out that there was no need to re-insure this with an Indian company. We were told that she was working according to the Minister’s decision.”

Education Minister of the 52-day government last year, Wijeyadasa Rajapakshe identified that there was an issue and submitted a Cabinet paper to establish a fund at the Education Ministry that can re-insure the ‘Suraksha’ insurance scheme.

Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim.

One Response to “Wijeyadasa adds to damaging evidence on student insurance scheme”

  1. aloy Says:

    Reinsurance is the name of the game. I was told by a friend of mine who is also one of the riches men in SL that this is one of the methods the politicos syphon out the wealth of people legally out of the country. Perhaps two of top Sinhala businessmen would have helped their masters/mistresses this way. The lady who did baby sitting in the UK for ten pounds an hour to become one of the richest to own a palaces in that countries is a case in point.

Leave a Reply

You must be logged in to post a comment.

 

 


Copyright © 2019 LankaWeb.com. All Rights Reserved. Powered by Wordpress