Ceylinco Life has announced a pay-out of more than Rs 2.4 billion in April 2015 in the form of annual bonuses and ‘Avurudu cash’ bonuses to over 300,000 policyholders.
Annual bonus certificates to the value of Rs 2.4 billion will reach entitled policyholders in the post during the month, with an invitation to a selected number to enhance their cover and become eligible to win five package tours to Bangkok or 20 smartphones, the company said.
This year’s annual bonus pay-out is the highest in Ceylinco Life history, and surpasses last year’s by Rs 500 million. The annual bonuses are in respect of the surplus generated by the company’s Life Fund in FY 2014.
The company disclosed it has increased its annual bonus rates in respect of 10 life insurance plans this year, on the recommendation of its consultant actuaries.
April will also see 14,200 Ceylinco Life policyholders receive Rs 57.2 million in immediately encashable cheques as ‘Avurudu Cash’ bonuses, which are paid as a reward for their loyalty. These bonus cheques are to be home delivered by Ceylinco Life during the month of April.
“Our bonus payments provide policyholders with an additional reason to celebrate every April, but it is also a good time to remind them about the importance of reviewing their policies to ascertain whether their cover is adequate to protect their loved ones,” said Mr R. Renganathan, Ceylinco Life’s Managing Director/CEO.
He said selected customers whose existing life cover is below Rs 1 million will be offered a chance to enhance the value of their policies this year through a direct mailer that will accompany their bonus certificates.
As in previous years, even policyholders who purchased their policies in December 2014 will be eligible to receive a bonus, in line with the company’s policy of declaring bonuses from the very first year of issue of a policy.
The ‘Avurudu Cash’ bonuses to be paid out this year will be the 12th such payment to Ceylinco Life policyholders. The company pioneered this practice in 2004. The cash bonuses are computed at Rs 100 for every Rs 1,000 of the sum assured for policyholders who have completed 25 years, while policyholders who have completed 20 years are eligible to receive a cash bonus computed at Rs 75 per Rs 1,000 sum assured, those who have completed 15 years Rs 50 per Rs 1000 sum assured and those who have completed 10 years Rs 25 per Rs 1000 sum assured.
On this basis, a participating policy with a sum assured of Rs. 1 million will be entitled to a cash bonus of Rs 25,000 on completion of 10 years, Rs 50,000 on completion of 15 years, Rs 75,000 on completion of 20 years and Rs 100,000 on completion of 25 years.
With this year’s cash bonus payments, the cumulative value of cash bonuses paid by Ceylinco Life over the past 12 years will exceed Rs 345 million.
Independently rated one of Sri Lanka’s most valuable brands, Ceylinco Life has maintained its leadership of the country’s long term insurance sector from 2004 onwards. The company operates the largest branch network among local life insurance companies, and has won multiple international and local awards for its commitment to the community and success in brand equity building.