News Reinsurance 31 Jan 2018

Sri Lanka:J B Boda operates as Reinsurance Broker in island country

| 31 Jan 2018

Reinsurance broker J B Boda & Co (S) Pte Ltd has responded to media reports about an interim injunction issued by Colombo District Court Judge Sujeewa Nishanka essentially forbidding any foreign company that is not registered as a company, or as insurance brokers, in Sri Lanka from offering any insurance related services in the country. The ruling would not impede the operations of J B Boda & Co (S) Pte Ltd in Sri Lanka because the company is a reinsurance broker.

J B Boda & Co (S) Pte Ltd said in a statement:

“Our attention has been drawn to several recent publications appearing in both print and electronic media referring to an action filed by Strategic Insurance Brokers (Pvt) Ltd seeking enjoining orders preventing J B Boda & Co (S) Pte Ltd from acting as an insurance broker and a reinsurance broker in Sri Lanka.

J B Boda & Co (S) Pte Ltd is a well-known reinsurance broker, established in Singapore since 1980 under regulations of the MAS, and has been operating in Sri Lanka exclusively as a reinsurance broker for more than 25 years. The Group parent company, J B Boda Reinsurance Brokers Mumbai has been operating since 1943 as reinsurance brokers and has completed 75 years in 2018. They have an impeccable and an unblemished track record serving the Sri Lankan reinsurance industry with distinction. Their clients include both government and private insurance companies in Sri Lanka.

As per IBSL (Insurance Board of Sri Lanka since renamed as Insurance Regulatory Commission of Sri Lanka) guidelines, local insurance companies, including government and private, obtain reinsurance cover through brokers registered overseas and such brokers are not required to be registered as insurance brokers, under the Regulation of the Insurance Industry Act No. 43 of 2000 (RII Act).

At no time in the past or present, J B Boda & Co (S) Pte Ltd had/has any engagement in the Sri Lankan insurance market as an insurance broker, as they are working purely as reinsurance brokers handling outgoing Treaty and Facultative business of the Sri Lankan market.

J B Boda & Co (S) Pte Ltd respects the laws of the land and regulations wherever it operates and has never been involved in any litigation in the past.

Though Strategic Insurance Brokers (Pvt) Ltd had sought two enjoining orders, firstly preventing J B Boda & Co (S) Pte Ltd from acting as an insurance broker and secondly to prevent J B Boda & Co (S) Pte Ltd from acting as a reinsurance broker, the court has only issued an enjoining order preventing J B Boda & Co (S) Pte Ltd from acting as an insurance broker only in Sri Lanka and did not grant the enjoining order preventing J B Boda & Co (S) Pte Ltd from acting as a reinsurance broker.

Since J B Boda & Co (S) Pte Ltd was not and is not involved in insurance brokering, we have retained legal counsel to bring the said matter to the notice of the court and vary the orders given against the company.

As we have sought and obtained an opinion from our legal counsel and possessed of the regulator's opinion, currently there is no impediment for the company to operate as a reinsurance broker in Sri Lanka.”


 

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