Cyclone Ditwah Insurance Claims Exceed Rs. 58.5 Billion

The Insurance Regulatory Commission of Sri Lanka (IRCSL) has intensified efforts to expedite insurance claim settlements following the catastrophic impact of Cyclone Ditwah. In coordination with all 14 licensed general insurers, a unified mechanism has been established to provide timely financial relief to affected families, households, businesses, and property owners.

As of 19 January, a total of 24,549 claims have been recorded, with non-motor insurance accounting for the larger share of the financial impact, despite motor claims representing the majority in volume. The total estimated value of claims is approximately Rs. 58.5 billion.

Financial relief of Rs. 5.1 billion has already been disbursed, including Rs. 4 billion for non-motor claims, reflecting the severity and complexity of property and commercial losses. To date, insurers have formally admitted 18,434 claims, representing 75% of total claims, including 12,725 motor and 5,709 non-motor claims.

The IRCSL has directed insurers to expedite assessment and settlement of remaining claims, fast-track compensation for minor property damage, and release advance payments for complex losses to support households and businesses.

Despite logistical challenges, such as technical officers and service providers also affected by the disaster, the insurance sector remains financially resilient, working closely with international reinsurance partners to mobilize necessary funds.

The IRCSL emphasised that this disaster underscores the critical role of insurance in building financial resilience against climate-related risks. Authorities and the public are urged to prioritise risk mitigation and climate-resilient construction, particularly in high-risk areas. The IRCSL reaffirmed its commitment to protect policyholders’ interests and support Sri Lanka’s recovery and long-term disaster preparedness.