29 March 2016 12:00 am
Policyholders of Ceylinco Life will celebrate more than the Sinhala and Tamil New Year this April, as they are due to receive a mammoth Rs 2.9 billion as bonuses from the life insurance leader.
Benefitting more than 300,000 policyholders, this bonus pay-out comprises of annual bonuses and ‘Avurudu Cash’ bonuses, the company announced this week.
This year’s annual bonus is the highest in Ceylinco Life’s history, and is in respect of the surplus generated by the company’s Life Fund in FY 2015. Even policyholders who purchased their policies in December 2015 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.
Annual bonus certificates totalling Rs 2.9 billion in value will reach entitled policyholders in the post in April and May, and some of them will be accompanied by an invitation to the policyholder from Ceylinco Life to increase his or her life cover, or obtain a retirement plan,to be eligible to win a package tour to Singapore or a smartphone.
Meanwhile, some 16,000 Ceylinco Life policyholders will receive immediately encashable cheques to the value of Rs 66.2 million in the post in early April, the company disclosed. These are the ‘Avurudu Cash’ bonuses unique to Ceylinco Life, with which the company rewards policyholders for their loyalty.
These cash bonuses are presented to Life policyholders who have completed their 10th, 15th, 20thand 25thpolicy year as at 31st December 2015. Ceylinco Life is the only insurer in the industry that pays such
cash bonuses.
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 will exceed Rs 410 million.