What is the difference between Comprehensive and Third-Party motor insurance in Sri Lanka?

Third-Party insurance is legally mandatory in Sri Lanka and only covers damages and injury caused to other people and their property. Comprehensive (Full Option) insurance covers damages to your own vehicle as well, including accidents, theft, fire, and natural disasters.

How do I claim insurance after a car accident in Sri Lanka?

Immediately call your insurance hotline (24/7 on-site assessment), avoid moving the vehicle until advised, take photos of the accident scene, exchange details with third parties, and file a police report if there are personal injuries.

What is a No-Claim Bonus (NCB) in Sri Lankan vehicle insurance?

NCB is a premium discount given to policyholders who do not make an insurance claim during a policy year. NCB can grow up to 50%-70% discount over consecutive claim-free years and can be transferred to a newly purchased vehicle.

Motor Vehicle Insurance Guide Sri Lanka

Understanding Motor Insurance in Sri Lanka (රථවාහන රක්ෂණ වර්ග)

Getting your driving license is the first step; protecting yourself and your vehicle on Sri Lankan roads is the next. Under the Motor Traffic Act of Sri Lanka, every motorized vehicle operating on public roads must hold at least a valid Third-Party insurance policy.

Coverage Feature	Third-Party Insurance (තෙවන පාර්ශව)	Comprehensive / Full Option (සම්පූර්ණ ආවරණය)
Legal Requirement	Mandatory by Law	Recommended
Damage to Other Vehicles / Property	Covered	Covered
Injury / Death to Third Parties	Covered	Covered
Damage to Your Own Vehicle	Not Covered	Covered
Theft, Fire & Natural Calamities	Not Covered	Covered (Floods, Landslides, Theft)
Towing & Roadside Assistance	None	24/7 Islandwide Assistance

Step-by-Step Accident Claim Guide (අනතුරක් සිදුවූ විට ක්‍රියාකළ යුතු ආකාරය)

If you are involved in a traffic accident, follow these crucial steps to ensure your insurance claim is approved smoothly:

Ensure Safety First: Turn on hazard lights. Check for injuries. If anyone is hurt, call 1990 (Suwa Seriya Ambulance) immediately.
Call Your Insurer's 24/7 Hotline: Do not move the vehicles until an on-site assessor arrives or the customer care representative gives explicit permission after photo evidence.
Capture Photo & Video Evidence: Take clear photos of all vehicle damage, license plates, road skid marks, and the wider junction from multiple angles.
Exchange Key Information: Record the other driver's full name, NIC number, driver license number, vehicle registration number, and their insurance company name.
Police Station Entry: If there is personal injury or severe third-party dispute, report to the nearest police traffic division within 24 hours.

How to Save on Vehicle Insurance (No-Claim Bonus / NCB)

A No-Claim Bonus (NCB) is a discount awarded by Sri Lankan insurers for each claim-free policy year.

1st Year Claim-Free: 15% - 20% discount on renewal premium.
2nd Year Claim-Free: 25% - 30% discount.
3rd Year Claim-Free: 35% - 40% discount.
5+ Years Claim-Free: Up to 50% - 70% discount on your annual comprehensive insurance cost!

Pro Tip for New Drivers: Minor scratches costing under Rs. 10,000 are often better repaired out-of-pocket rather than losing a 30%-50% NCB renewal discount.

Frequently Asked Questions

Yes, NCB belongs to the policyholder, not the vehicle. Request an NCB certificate from your existing insurer to apply the discount to your new vehicle.

Most standard comprehensive policies cover learner drivers as long as an authorized licensed instructor or experienced driver (holding a valid license for at least 3 years) is accompanying them in the front passenger seat with 'L' plates displayed.

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Motor Vehicle Insurance Guide in Sri Lanka