Health Insurance

Health insurance is insurance that covers the whole or a part of the

risk of a person incurring medical expenses, spreading the risk over a
large number of persons.
 By estimating the overall risk of health care and health system
expenses over the risk pool, an insurer can develop a routine finance
structure, such as a monthly premium or payroll tax, to provide the
money to pay for the health care benefits specified in the insurance
agreement.
The benefit is administered by a central organization such as a
government agency, private business, or not-for-profit entity.
“Coverage that provides for the payments of benefits as a result of
sickness or injury. It includes insurance for losses from accident,
medical expense, disability, or accidental death and dismemberment"
 Types Of Health Insurance
Hospitalization Plans
Hospitalization plans reimburse the hospitalization and medical costs of the
insured subject to the sum insured. For this reason, the plans are also known as
indemnity plans.
The sum assured can be fixed -
• I- For a member of the family in case of individual health policies or
• II- For a family as a whole in case of a family health insurance policy
For instance, consider a three-member family with an individual cover of Rs 1
lakh each. Each member can claim reimbursement for a maximum of Rs 1 lakh
as all three policies are independent.
If the family applies for a family health plan cover of Rs 3 lakhs, then any family
member can claim medical benefit for more than Rs 1 lakh so long as it is
within the overall sum assured of Rs 3 lakhs.
Hospital Daily Cash Benefit Plans
The daily cash benefit plan is a defined benefit policy. As evident from the name,
the policy pays out a defined sum of money for every day of hospitalization
regardless of actual costs. For instance, the hospitalization costs for a day may be
Rs 2,000/day and the defined daily limit of the policy could be Rs 1,500/day, in
which case the insured receives the latter. On the other hand, if the hospitalization
cost is Rs 1,000/day, he still receives Rs 1,500/day.
Critical Illness Plans
These are benefit-based health insurance plans which pay a lumpsum
amount on diagnosis of predefined critical illnesses and medical
procedures. The illnesses are specified at the outset. By nature, critical
illnesses are high severity and low frequency and cost of treatment is
higher compared to regular medical problems like heart attack, stroke,
among others.
 General Insurance
• Definition: Insurance contracts that do not come under the ambit of life
insurance are called general insurance. The different forms of general
insurance are fire, marine, motor, accident and other miscellaneous non-life
insurance.
• The tangible assets are susceptible to damages and a need to protect the
economic value of the assets is needed. For this purpose, general insurance
products are bought as they provide protection against unforeseeable
contingencies like damage and loss of the asset. Like life insurance, general
insurance products come at a price in the form of premium.
 Types of General Insurance
• Motor Insurance: Motor Insurance can be divided into two groups, two and four
wheeled vehicle insurance.
• Health Insurance: Common types of health insurance includes: individual health
insurance, family floater health insurance, comprehensive health insurance and
critical illness insurance.
• Travel Insurance: Travel insurance can be broadly grouped into: individual travel
policy, family travel policy, student travel insurance, and senior citizen health
insurance.
• Home Insurance: Home insurance protects a house and its contents.
• Marine Insurance: Marine cargo insurance covers goods, freight, cargo, and other
interests against loss or damage during transit by rail, road, sea and/or air.
• Commercial Insurance: Commercial insurance encompasses solutions for all sectors
of the industry arising out of business operations.
 Mutual Fund

“A mutual fund is an investment vehicle made up of a pool of money collected

from many investors for the purpose of investing in securities such as stocks,
bonds, money market instruments and other assets. Mutual funds are
operated by professional money managers, who allocate the fund's
investments and attempt to produce capital gains and/or income for the fund's
investors. A mutual fund's portfolio is structured and maintained to match the
investment objectives stated in its prospectus.”
 Mutual Funds Products/Types
Money market funds
These funds invest in short-term fixed income securities such as government
bonds, treasury bills, bankers’ acceptances, commercial paper and certificates
of deposit. They are generally a safer investment, but with a lower potential
return then other types of mutual funds. Canadian money market funds try to
keep their net asset value (NAV) stable at $10 per security.
Fixed income funds
These funds buy investments that pay a fixed rate of return like government
bonds, investment-grade corporate bonds and high-yield corporate bonds. They
aim to have money coming into the fund on a regular basis, mostly through
interest that the fund earns. High-yield corporate bond funds are generally
riskier than funds that hold government and investment-grade bonds.
Equity funds
These funds invest in stocks. These funds aim to grow faster than money
market or fixed income funds, so there is usually a higher risk that you could
lose money. You can choose from different types of equity funds including
those that specialize in growth stocks (which don’t usually pay dividends),
income funds (which hold stocks that pay large dividends), value stocks, large-
cap stocks, mid-cap stocks, small-cap stocks, or combinations of these.
Balanced funds
These funds invest in a mix of equities and fixed income securities. They try to
balance the aim of achieving higher returns against the risk of losing money.
Most of these funds follow a formula to split money among the different
types of investments. They tend to have more risk than fixed income funds,
but less risk than pure equity funds. Aggressive funds hold more equities and
fewer bonds, while conservative funds hold fewer equities relative to bonds.
Index funds
These funds aim to track the performance of a specific index such as the
S&P/TSX Composite Index. The value of the mutual fund will go up or down as
the index goes up or down. Index funds typically have lower costs than actively
managed mutual funds because the portfolio manager doesn’t have to do as
much research or make as many investment decisions.
Specialty funds
These funds focus on specialized mandates such as real estate, commodities or
socially responsible investing. For example, a socially responsible fund may
invest in companies that support environmental stewardship, human rights and
diversity, and may avoid companies involved in alcohol, tobacco, gambling,
weapons and the military.
 Banking Products( Liabilities Products)
Savings Account:
Savings Account is designed to ensure better returns and convenience to withdraw funds
whenever the customer needs.
Benefits
 Attractive Interest Rates
 Interest calculated daily and credited to the account monthly.
 Free VISA Debit card
 Allow FREE cash withdrawals through all VISA ATM's and purchase goods & services over
20000 merchant establishments in Sri Lanka and around the world
 Deposits are offered in LKR, EURO, GBP and USD.
 Free monthly statements
 Free internet banking access for viewing of transactions and balances
 Account can be opened and operated by joint applicants
 Ability to appoint any person of full contractual capacity to operate the account in
customer's absence
Procedures to be followed
• Duly signed application to be submitted
• KYC Clearance
• A copy of valid National Identity card/Driving license/ Passport
• Address proof document to be submitted
• Duly signed With Holding Tax (WHT) declaration
Major terms and conditions
• Over 18 years of age with a valid National Identity Card or Passport
• A minimum initial deposit
• Minimum Average monthly balance
• Monthly Interest credited to the account is subject to prevailing With Holding Tax
(WHT)
 Current Account
Current Account you are on your way to managing your funds with ease. It’s the most
convenient way to handle your day to day transactions.
• Benefits
• Free personalised cheque book
• Standing order facility
• Interest calculated daily and credited to the account monthly.
• Free VISA Debit card
• Allow FREE cash withdrawals through all VISA ATM's and purchase goods & services over
20000 merchant establishments in Sri Lanka and around the world
• Deposits are offered in EURO, GBP and USD.
• Free monthly statements
• Free internet banking access for viewing of transactions and balances
• Account can be opened and operated by joint applicants
• Ability to appoint any person of full contractual capacity to operate the account in
customer's absence
Procedures to be followed
• Duly signed application to be submitted
• KYC Clearance
• A copy of valid National Identity card/Driving license/ Passport
• Address proof document to be submitted
• Personal interview with the Branch Manager
Major terms and conditions
Sri Lankan over 18 years of age with a valid National Identity Card or Passport
A minimum initial deposit
Minimum Average monthly balance
Request on a instant Debit card will charge and delivery as per the normal process will be Free of cost
Cheque book charges per leaf
Charges for stop payment
Charges for stop payment cancellation
Charges for loss of cheque book
Cheque return of customers account
Cheque return Charges on clearing cheques
 Salary Account
Salary Account with competitive benefits that could be offered both to the company and the
individuals
Benefits
• Free and Easy Money Transfer facility to India
• Attractive Interest Rates
• Interest calculated daily and credited to the account monthly.
• Free VISA Debit card
• Allow FREE cash withdrawals through all VISA ATM's and purchase goods & services over 20000
merchant establishments in Sri Lanka and around the world
• Deposits are offered in EURO, GBP and USD.
• Free monthly statements
• Free internet banking access for viewing of transactions and balances
• Account can be opened and operated by joint applicants
• Ability to appoint any person of full contractual capacity to operate the account in customer's
absence
• No monthly average balance is required as in the case of a normal savings account
• Reissue ATM cum Debit card will be given at a reduced rate
 Fixed deposits
A bank financial instrument, where money is invested at a fixed rate for fixed period
(also called as Term Deposits).
Benefits
• Attractive interest rate
• Deposits are offered in EURO, GBP and USD.
• Automatic renewals are possible on maturity.
• Availability of a wide choice of tenure to choose from 1 month upto 60 months
• Free internet banking access for viewing of transactions and balances (If you have a
Savings / Current account relationship with us)
• Ability to appoint any person of full contractual capacity to operate the account in
customer's absence
• Safe Deposit locker facility
• E Deposit Confirmation Advice - On placement and renewals of deposits
 Major terms and conditions
• Minimum deposit is 10,000/-
• Fixed deposits are accepted with auto-renewal facility at periodicity as opted by the
depositor . In the absence of any instructions, amounts arising out of the maturity of a
fixed deposit shall be reinvested in a fixed deposit of the same term at the rates of
interest prevailing at the time of the reinvestment.
• Fixed Deposit Receipt or Deposit Confirmation advice will be issued to account holder as
may be decided by the Bank from time to time for customer convenience.
• Tax at source is deducted as applicable from the interest on fixed deposit, as per Inland
Revenue Act
• Interest on fixed deposits is reckoned / paid at predefined intervals, at the rates
applicable at the time of acceptance as the case may be, in accordance with Central
Bank of Sri Lanka directives.
• In the event of the Fixed Deposit being closed before completing the original term of
deposit, interest will be paid at the rate applicable on the date of deposit for the period
for which the deposit has remained with the Bank. The deposit may be subject to a
lower penal rate of interest as prescribed by the Bank on the date of deposit.
• Monthly Interest credited to the account is subject to prevailing With Holding Tax (WHT)
 Young Stars Account
This Children’s Account is a type of Savings Account for Children (being customers of less than 18
years of age)
Benefits
• Minimum deposit of 20,000/-. If the parent/guardian has an existing relationship with the Bank,
the amount would be 15,000/-.
• Interest rate is currently higher by 1.0% p.a. as compared to the general savings account
Major terms & conditions
Can choose from any gift from below schemes
Scheme 1 - Monthly Deposit of 2500/-
On completion of e very 3 successful installments, account holder will get a gift voucher worth LKR
500/-
A special souvenir (voucher) on his / her birthday.
Scheme 2 - Monthly Deposit of 5000/-
• On completion of every 3 successful installments, account holder will get a voucher worth LKR
1000/-
• A special souvenir (voucher) on his / her birthday. It will be a voucher for a family meal at a food
outlet.
 Senior Citizens Account
Senior Citizens is a Savings account for elders above 55 years of age
Benefits
• Get 4.0% p.a. interest rate on your Savings Account every month.
• Get 1.0% higher interest rate for your Fixed Deposits of one year tenor.
Procedures to be followed
• Duly signed application to be submitted
• KYC Clearance
• A copy of valid National Identity card/Driving license/ Passport
• Address proof document to be submitted
• Duly signed With Holding Tax (WHT) declaration
• Major terms and conditions
• Minimum deposit is 10,000/-
• Monthly Interest credited to the account is subject to prevailing With Holding Tax (WHT)
• General terms and conditions of the Bank savings account will apply.