Premium Payment Requirements for General Insurance Policies

06 April 2026

Dear Valued Policyholder,

Important Update: Premium Payment Requirements for General Insurance Policies

As part of ongoing regulatory enhancements to strengthen transparency and financial discipline within the insurance industry, the Insurance Regulatory Commission of Sri Lanka (IRCSL) has introduced revised requirements relating to the payment of premiums for General Insurance policies.

Further to Circulars No. 3 and No. 4 of 2025, and Direction No. 05 of 2026, the updated requirements are outlined below:

1. Motor Insurance Policies

Only a 30-day credit period from the date of commencement of cover will be permitted for the payment of premiums, effective 1 May 2026.

2. Travel, Marine, Title Insurance and Bonds

These policies will continue to be issued only upon full payment of the premium, a requirement that has been in effect since 9 October 2023.

3. Non-Motor Insurance Policies

A maximum credit period of 60 days from the date of commencement of cover will be permitted for the payment of premiums.

Additional Conditions (Applicable to Motor and Non-Motor Policies)

• The full premium must be settled within the applicable credit period from the commencement date of cover.
• Settlement of claims is subject to full payment of the premium within the permitted credit period.
• Any claim arising prior to the end of the permitted credit period and before full premium payment may be deferred until the premium is fully settled.
• If the premium remains unpaid beyond the permitted period, the policy will be automatically cancelled with immediate effect from inception, in accordance with the Premium Payment Warranty Clause.
• The Company reserves the right to recover any outstanding premium applicable to the period during which cover was in force.

We kindly request that you ensure premiums are settled within the applicable timelines to avoid any interruption or cancellation of your insurance cover.

Should you require any clarification or assistance, please contact our 24×7 hotline on 0112 428 428.

We thank you for your continued trust and understanding and remain committed to serving you.

Yours faithfully,
Fairfirst Insurance Limited