About usThe process of formation of the SICL took place in 1989, when a NGO called 'Forum on Development' (FOD) conducted a survey to identify the more popular voluntary organizations in the area of Warakapola in the Kegalle district. It was a project designed to promote development skills of voluntary organizations. The main findings to be covered in the study were how villagers were organized into voluntary organizations and how funds were built and administrated to help people in need. It was revealed in the survey that Funeral Aid Societies (FAS) were most popular and active organizations at the village level with a high degree of participation due to their need based approach of providing assistance, when there is a family calamity such as death of the breadwinner or the caretaker of children and elderly persons. It was further revealed, that FAS were strong with well built funds.
In the light of this information, representatives of FAS were motivated by FOD to design and implement an insurance scheme of their own. The insurance scheme designed by them was named "Ahethuka Wipath Awaranaya" (risk coverage against unfortunate perils). Benefits under the scheme included death cover and disability caused by road accidents, occupational hazards, falling from heights and trees, poisoning, fire and lighting, floods and snakes bites, which were considered as common perils faced by the poor.
The scheme was inaugurated in October 1991 with a participatory membership of 182 persons. The organization that was established for conducting the scheme was known as "All Lanka Mutual Organizations" (ALMAO). After 2 year's operation, ALMAO became a registered society and was declared as a Specially Authorized Society by the Ministry of Trade and Commerce under the Societies Ordinance. In 1996 the micro insurance division of the SANASA Federation of Thrift and Credit Societies was amalgamated with ALMAO and as a result, insurance activities of ALMAO expanded rapidly. Consequently, the management of ALMAO decided to strengthen the structure of the organization and to obtain the legal status of a recognized insurer. As there were no provisions in the insurance law to register a Mutual Organization, arrangements were made to set up a registered company to obtain a license to transact insurance business for the SANASA movement. The license was granted by the Insurance Board of Sri Lanka (IBSL) established under the Regulation of Insurance Industry Act N0. 42 of 2000.
Initially the SICL was established to operate only the business of Life Insurance. Before long it had to expand its business operations to the field of General Insurance since its main objective was to introduce micro insurance products with multiple benefits related to both Life and General Insurance portfolios.