Sri Lanka is set to implement a digital insurance card, replacing the existing plastic version, in an effort to integrate 2.8 million uninsured vehicles into the insurance framework, according to the Chairman of the Insurance Regulatory Commission of Sri Lanka, Ajith Raveendra De Mel.
De Mel reported that there are currently 8.8 million registered vehicles in the country, but only around 6 million have valid insurance coverage. This leaves 2.8 million vehicles uninsured, which includes those deemed unroadworthy, vehicles held by leasing firms, and those owned by governmental bodies.
He noted that several government agencies operate vehicles without insurance coverage. Going forward, individuals registering new vehicles will receive a link containing a QR code, allowing law enforcement to access a digital verification system for the new insurance card.
The introduction of this digital card, which is scheduled to launch on May 1, is a collaborative effort involving the Insurance Regulatory Commission and all 14 general insurance companies in the country. An additional benefit of the digital card is its ability to provide real-time updates, contrasting with the plastic card that may carry outdated information.
De Mel emphasized the importance of timely payments, stating that there is a 60-day window for payment completion. If payment is not made within this timeframe, police will be unable to verify the insurance status through the old plastic card. This discrepancy has previously resulted in significant revenue losses for the insurance sector.
Furthermore, the transition to a digital card is expected to contribute to a reduction in plastic waste, highlighting a commitment to environmental sustainability.
