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Ceylinco Insurance, last Wednesday unveiled to the media its own innovative product with teaser advertising campaign in electronic media kicked off from Monday that week. However on Thursday, when the fuller details of its new product splashed via series of advertisements, Sri Lanka Insurance too announced its own scheme.

Perhaps sensing that its product features were copied, Ceylinco’s next spate of advertising told the people not to fall prey to imitates.
The Bottom Line reliably understands that Ceylinco did inform its sentiments to insurance regular Insurance Board of Sri Lanka.

The move by Ceylinco is to set the record straight and not to call for action.
A spokesman for Sri Lanka Insurance however denied that the Ceylinco product was copied but alleged that it was the other way around.
The SLI spokesman said it was working on a value addition before hand and launched it the same week with its own teaser campaign activated much earlier.

However the first press ads from Ceylinco came on Tuesday (Nov 13) while that of Sri Lanka Insurance was the next day. (November 14).
Ceylinco in its original advertisement in announcing what it described as revolutionary product” branded “3 in One” said when a customer joins the Ceylinco VIP On the Spot he or she gets the following: The No Claim Bonus Paid regardless of any claims; The sum insured of the vehicle enhanced by 10% every year, with no change to the premium and In the event of a repair exceeding 30 days, Leasing installments paid up to 2 months.

These benefits are in addition to those enjoyed already under the Ceylinco VIP on the Spot product.

The same day Sri Lanka Insurance said it was presenting the “ultimate in Sri Lankan motor insurance” with its product branded “Formula Plus Motor Insurance All in One.” In the inaugural advertisement, it only asked “How many new benefits will you be entitled to by staying on with us for three years? 1, 2, 3, 4, or even more.” “Sit tight. We won’t make you wait long to find.”

Its second ad said if customers stay with Sri Lanka Insurance for three consecutive years they can enjoy a multitude of ultimate benefits.

They amounted to seven and were: Protected No Claim Bonus (Your no claim bonus is now safe even if you meet with an accident); Protected Lease Installments (We pay upto 2 months of lease installments if the repair takes more than a month); 50% reduction on appreciated value (we now offer you a 50% reduction on the additional premium on the appreciated value of your vehicle); Special covers for professionals (Enjoy benefits unique to you if you are a Doctor, Lawyer, Engineer, Accountant etc); Special Covers for Corporates (Specifically designed benefits and facilities for all corporate clients); Special cover for Lady Owner Drivers (Specifically designed benefits and offers for all lady owner drivers); and Senior Citizens Special Cover (Benefits and offers that take into account your special needs).

All these benefits and more are in addition to the benefits already enjoyed under Formula Plus.

Thereafter Ceylinco had a new advertisement telling customers “Why wait with conditions for three years to get 1, 2, 3, 4 …. Benefits?” and emphasized that new and existing customers with Ceylinco VIP on the Spot 3 in One get from day one the original three new benefits and other existing one. Ceylinco advertisement also had a warning which read “Copycats at large: Beware of Imitations.”

Insurance industry analysts said that the two products are similar. “Motor insurance is profitable and the new offers are at the expense of each others’ margins,” they added. Unlike in launching new life products, it is not a regulatory requirement to file an actuaries report when it comes to motor insurance product.