📈 IRCSL targets doubling insurance penetration by 2030

The Insurance Regulatory Commission of Sri Lanka (IRCSL) has unveiled an ambitious roadmap to double the country's current insurance penetration level of 1.1% by 2030, and triple it by 2035. Key Figures & Enforcement: • Out of 8.8 Mn registered vehicles in Sri Lanka, 2.8 Mn (approx. 32%) are currently uninsured, including State-owned vehicles. • A new digital motor insurance card system with QR codes came into effect on May 1, 2026, eliminating traditional printed certificates and reducing industry plastic waste from 6 Mn annual physical cards. • Traffic Police across 608 stations can now instantly verify policy validity via a digital verification platform, SMS, USSD (1338#), or IVR to eliminate the usage of invalid cards during premium grace periods. Compensation & Sector Integration: • The motor insurance sector has established an "Insurance Crib" (national vehicle insurance database). • The financial limit for the Optional Compensation Scheme for third-party accident victims (death/permanent disability) has been doubled from Rs. 500,000 to Rs. 1.0 Mn, with Rs. 50 Mn already disbursed since March 2024. • IRCSL is negotiating with the Health Ministry to integrate insurance with the healthcare system to alleviate national budget fiscal burdens, where healthcare currently holds the second-largest allocation.