Business

Harnessing social protection during pandemics

Published

1 week ago

November 21, 2020

Strengthening social protection systems is of critical importance to respond to shocks such as COVID-19. They play a vital role in addressing consumption shortfalls and supporting income and job security for affected communities. Many countries have been taking various measures to strengthen their social protection. These include social assistance measures like cash and in-kind transfers, social insurance measures like pensions, unemployment benefits, social security contribution waivers/subsidisation, and active labour market related measures such as wage subsidies and training measures.

The government of Sri Lanka too introduced a relief package that included both financial and non-financial assistance to help households that were affected by the pandemic. One of the key measures was a social protection measure, i.e. a monthly cash transfer of LKR 5,000 for two consecutive months (April and May 2020) to various vulnerable groups. This social protection measure was based on a number of existing social protection schemes like the Samurdhi cash transfer programme, disability assistance, farmers’ and fishermen’s pension schemes etc. In addition, committees were set up in each Grama Niladhari (GN) division/ward to identify and approve other deserving individuals and families for this cash grant.

Horizontal expansion

Sri Lanka’s social protection response to COVID-19 showed a horizontal expansion/scaled-up coverage compared to the pre-COVID-19 level; it covered not only the current beneficiaries of the programmes considered (e.g. Samurdhi, elder’s assistance and disability assistance programmes) but also those who were in the waitlists as well as individuals and families selected by the Committees.

This social protection measure also indicated some level of vertical expansion, i.e. higher level of benefits compared to their pre-COVID-19 levels. Yet, the level of generosity of the benefits (compared to the pre-COVID-19 levels) varied from 0% to over 100% depending on the beneficiary category (see Figure). For example, over 100% increase in benefits was seen among the current beneficiaries of the Samurdhi and elders assistance programme while beneficiaries of the disability assistance programme and kidney patients allowance merely received their regular monthly allowance of LKR 5,000.

Recommendations

Despite the expansion, the cash transfer scheme had a number of limitations. Immediate/short-term measures like distribution of cash assistance are inadequate to sustain the recovery and to mitigate future crises. Long-term measures are required to strengthen Sri Lanka’s social protection.

• Integrated Social Protection System: The COVID-19 pandemic highlights the need for an integrated social protection system and a unified and coordinated structure at the national level as well as at the divisional level in Sri Lanka. The existing system is a fragmented system with parallel structures.

• Scaled-up /Universal Coverage: The pandemic has also shown that not only the poor and vulnerable, but all segments of the population require protection. This calls for a universal social protection system, including social protection floors.

• Digitisation of Payments: Digital payment systems are key to improve efficiency of the delivery process without delays and higher transaction costs, while complying with health guidelines to combat a pandemic. They do not require both physical mobility of people and payments in cash. Thus, it is time for Sri Lanka too to move towards a digital payment system for delivery of cash transfers.

This Policy Insight is based on the comprehensive chapter on “Harnessing Social Protection During Pandemics” in ‘Sri Lanka: State of the Economy 2020’ report – the flagship publication of the Institute of Policy Studies of Sri Lanka (IPS). The complete report can be purchased from the Publications Unit of the IPS.

Business

Union Assurance empowers its policyholders by introducing free COVID-19 life coverage

Published

20 hours ago

November 29, 2020

Dilshan Nadeera

Union Assurance PLC being one of the largest insurance solution providers in Sri Lanka has further established their commitment towards the nation by staying true to its promise, ‘Your Life, Our Strength’. In turbulent times such as COVID-19, the company has taken initiative to persevere and adapt by responding to customers’ needs irrespective of the unanticipated circumstances presented.

The free COVID-19 cover has been reinstated to support both existing and new policyholders to ensure additional protection during these uncertain times. The cover provides a free death cover up to a maximum of LKR 1 million per policyholder. This free cover is valid for a period of one month commencing from 02nd November 2020 to 01st December 2020.
Union Assurance was also recognized as one of the first life insurance companies to offer hospital cash benefits for quarantine treatments since the outbreak of COVID-19 in Sri Lanka. The company therefore assures all its valued policyholders this initiative would be continued in which hospitalization per day claims directly resulting from COVID-19 will be considered from 20th October to 31st December 2020.

Amidst grave adversity Union Assurance strives to provide its unwavering commitment in offering the best in class protection coverages to its policyholders while ensuring that their families are financially empowered to face any challenge and uncertainty.

Jude Gomes, Chief Executive Officer of Union Assurance stated, “The COVID-19 pandemic is a global health, economic and social crisis and has affected people from all walks of life. We offer this timely protection cover free of charge to provide our policyholders the added peace of mind that the future of their families will be secured during these uncertain times. The specialty of this cover is that it is not just limited to our existing policyholders but is also offered to new customers and thereby giving Sri Lankans access to secure the future of their families.”

To obtain more information about this free COIVD 19 cover, call the Union Assurance 24-hour hotline on 1330, email: info@unionassurance.com; or chat with the company on www.unionassurance.com
Union Assurance is the oldest private life insurer in Sri Lanka, and is a member of the John Keells Group, Sri Lanka’s largest listed conglomerate. Union Assurance completes over three decades of success in the industry with a market capitalization of Rs. 18 Bn, a Life Fund of Rs. 38 Bn and a Capital Adequacy Ratio (CAR) of 434% as at August 2020. Set to empower the Sri Lankan Dream, Union Assurance offers Life Insurance solutions that cover education, health, protection, retirement, and investment needs of Sri Lankans. With 76 branches and an over 3000-strong workforce, Union Assurance continues to invest in people, products, and processes to remain agile and responsive to emerging changes in the Life Insurance industry.

Business

Seylan Bank partners with Mastercard to facilitate MasterCard Payment Gateway Services

Published

20 hours ago

November 29, 2020

Dilshan Nadeera

Seylan Bank, the Bank with a Heart, recently partnered with Mastercard to integrate MasterCard Payment Gateway Services (MPGS) – a technology platform to enable easy and secure acceptance of a wide range of digital payment methods for Seylan customers.

As the need for digitization of banking products and services grows globally, banks are continuing to evolve their Internet Payment Gateways (IPG) to introduce new technologies offering heightened customer convenience and security of digital transactions. By partnering with Mastercard and facilitating the MPGS platform, Seylan customers, merchants, and industry partners will benefit from a range of features, delivering an enhanced user experience.

Commenting on this, Chaminda Senewiratne – Head of Digital Banking Channels at Seylan Bank said “The MasterCard Payment Gateway Service will transform digital transactions, further eliminating the need for cash payments. We at Seylan Bank, are proud to partner with Mastercard, one of the world’s leading payment platforms to offer our customers the MPGS service. Our customers can now experience an elevated, secure, reliable, and fast digital payment process, making the payment gateway a desirable channel giving merchants a chance to take their businesses global and accept payments from customers through the gateway.

Business

AIA Wealth Planner Krishan Dassanayaka internationally honoured

Published

20 hours ago

November 29, 2020

Dilshan Nadeera

AIA Insurance’s Wealth Planner, Krishan Wasantha Dassanayaka, has been honoured by the Million Dollar Round Table (MDRT) with an invitation to serve on the Membership Communications Committee (MCC) as Country Chair for Sri Lanka, AIA said in a news release.

The MCC is a network of more than 400 members worldwide who are responsible for promoting MDRT and communicating information to current and aspiring members, companies, and other industry organizations and reporting the needs and concerns of members to the MDRT Executive Committee and MDRT headquarters in the USA.

It is a global and independent association that is internationally recognised as the standard of excellence in life insurance and financial services. MDRT has an overall membership of 72,000 from over 500 companies in 70 countries. Its members are required to generate a certain level of premium, commission and income, and demonstrate professional knowledge, strict ethical conduct and outstanding client service.

AIA said Dassanayake’s was an outstanding achievement both personally and professionally and one which has brought great pride to person and organization.

“With this prestigious new appointment, Krishan will work with the global MDRT team for innovative ideation, groundbreaking implementation and achieving high-quality results,” the release said.

Having joined AIA Insurance as a Wealth Planner in 2003, he has always been a top performer and source of pride to the organisation and had won a host of national awards including the Golden Eagle (2009) and Silver Eagle several times as well as being recognized by AIA as a ‘Premier Wealth Planner’ for six straight years and as a ‘Supreme Wealth Planner’ for four years running.