In a letter to the education ministry secretary, their association notes that only state-run insurance companies should bid for insurance coverage for state institutions as per the circular.
The ministry secretary should accept the blame for awarding the Suraksha insurance scheme to Alliance Insurance, it says.
The resultant outflow of state tax money from the country is especially damaging in light of a depreciated local currency, the association notes.
Meanwhile, the cabinet yesterday (07) gave approval to grant more benefits to the schoolchildren as well as their parents under Suraksha.
Education minister Akila Viraj Kariyawasam says a private insurance company has been awarded the tender in line with the due procedure.
According to him, even when Sri Lanka Insurance Corporation was responsible for Suraksha’s re-insurance, there was an outflow of around Rs. 2,700 million from the country.
When fresh tenders were called, SLI was again chosen, but the appeals board decided to award it to the lowest bidder, which was a private company, he added.