Good question — choosing the best group life policy in Sri Lanka comes down to matching the plan design to your workforce needs and then picking a financially strong, well-administered insurer with clear policy wording and a trustworthy claims track record. Below is a practical, step‑by‑step guide plus a short checklist and red flags.

1. Start with needs and budget

• Decide the objective: basic death benefit, salary-multiple cover, accidental death & disability, critical‑illness rider, funeral expense, hospital cash, etc.
• Decide who’s covered (all employees, permanent only, minimum service/age limits) and the benefit formula (flat sum, x × annual salary, graded by grade).
• Set a budget (total annual premium) and whether employer pays 100% or employees contribute.

2. Shortlist insurers / intermediaries

• Only use IRCSL‑licensed insurers and registered brokers/agents — verify on the Insurance Regulatory Commission of Sri Lanka (IRCSL) list before you proceed. (govserv.org)
• Consider insurers that participate in the local Insurance Ombudsman / dispute resolution scheme (shows commitment to policyholder protection). (insuranceombudsman.lk)
• Get at least 3 competitive quotes (tenders/RFP) so you can compare price and cover on the same terms. (You can find directories of licensed providers to build your shortlist.) (ten.lk)

3. Compare the things that matter (policy wording) For every quote ask for — and compare — the full policy wording (not just brochures):

• Sum assured per employee and how it’s calculated (salary multiple vs flat).
• Eligibility, waiting periods, probation exclusions, and when cover starts (backdating/new hires).
• Covered causes: natural death, accidental death, total & permanent disability (TPD), partial disability, critical illness — and precise definitions for each.
• Exclusions (suicide, war, pre‑existing conditions) and any age limits.
• Optional riders (CI, accidental death, funeral benefit) and their cost.
• Conversion/portability options (can leaving employees convert to individual policies?) and termination conditions.
• Premium structure: guaranteed vs reviewable, frequency, grace periods and late payment consequences.
• Underwriting requirements (medicals for higher lives/limits or purely group-rated).
• Claims process, required documents, typical turnaround times and whether the insurer offers electronic/assisted claims submission.
• Reporting & administration: access to online administration, payroll integration, monthly/annual statements, and member certificates.
  (Example: Sri Lanka Insurance’s “Group Term” brochure shows how an insurer lists covered benefits and plan options — always ask for the equivalent for each bidder.) (srilankainsurance.com)

4. Check financial strength and claims performance

• Review the insurer’s recent financial results, solvency position and how much they paid in claims (published annual reports and press releases). Large, consistently‑profitable insurers who publish sizable claim payouts are preferable. (Insurers publish results and claim payments; e.g., SLIC Life reported large claim/maturity payments in its 2024 results.) (sliclife.com)
• If available, ask the insurer for their group claims statistics (settlement ratio and average payout time) for the last 2–3 years.

5. Service, administration & claims handling

• Prefer insurers/brokers that offer a dedicated account manager, online membership administration, and digital claims submission/tracking.
• Ask for sample claim forms, a recent claim turnaround time metric, and references from 2–3 corporate clients of similar size.

6. Price vs value

• Don’t choose solely on lowest premium. A slightly higher premium that gives faster claims handling, broader definitions (e.g., clear TPD definition), and good administration is often better value.
• If you have a young, low‑risk population you may negotiate higher limits without medicals; for older/higher sums expect graded underwriting or medicals.

7. Contract terms to negotiate

• Guaranteed premium period (1, 2 or 3 years), renewal notice and maximum premium increase caps.
• Removal of ambiguous exclusions and clearer definitions for disability/CI.
• Reporting frequency, audit rights and a service level agreement (SLA) for claims handling.

8. Implementation & governance

• Pilot or phased rollout (if many employees) to test administration and claims flow.
• Keep employee communications clear: provide member certificates, contact details for claims, and a short FAQ.
• Set a review cadence (annually or on renewal) to assess utilization, claims experience and whether to retender.

9. Red flags

• The seller refuses to give full policy wordings or sample claim forms.
• The insurer/broker cannot show IRCSL registration or is not listed among licensed providers. (govserv.org)
• Vague or unusually long claims processing times, or many unresolved complaints (check Ombudsman/IRCSL notices).
• Extremely low price with unusually broad cover (may be unsustainable).

Quick checklist to ask each insurer/broker (copy this to use in your RFP)

• Are you IRCSL‑licensed? Provide licence details. (govserv.org)
• Provide full policy wording, sample member certificate and sample claim form. (srilankainsurance.com)
• Provide group claims statistics (settlement % and average turnaround time) for the last 3 years. (sliclife.com)
• Detail exclusions, waiting periods and the TPD definition.
• Explain premiums: guaranteed period, review/renewal terms, and if premiums are experience‑rated.
• Provide 2 client references of similar size/sector.
• Confirm whether you participate in the Insurance Ombudsman scheme and provide complaint/appeal contact details. (insuranceombudsman.lk)

Final practical tips

• Use a reputable, IRCSL‑registered broker if you don’t have internal expertise — they can structure the cover, run the tender and negotiate terms. Always confirm the broker is registered. (govserv.org)
• Keep all documents (policy wording, endorsements, employer certificates) and store claims correspondence centrally so you can track and escalate if needed.
• Review plan performance yearly and retender every 2–3 years or if claims experience materially changes.

If you’d like, I can:

• Draft a short RFP template you can send to insurers/brokers in Sri Lanka, or
• Build the 10‑question comparison spreadsheet (policy wording + pricing + claims SLA) you can use to evaluate three offers.

Which of those would you prefer?