Sri Lanka’s push toward digital motor insurance, symbolised by the newly launched E-Motor Insurance Digital Card, is being hailed as progress. Yet beneath the optimism lies a web of risks that could undermine both motorists and institutions if left unaddressed.
At the heart of the initiative is a fully digital insurance credential, backed by insurer databases and verified through mobile devices used by police officers. While this promises efficiency, it also introduces single-point system dependency. Any outage, cyber incident, or data mismatch could instantly render thousands of motorists “unverifiable” at roadside checks, creating legal and logistical chaos.
Cybersecurity is a major concern. The E-Motor Card and the upcoming National Insurance Verification System consolidate sensitive personal, vehicle, and insurance data across multiple insurers. Sri Lanka’s public digital infrastructure has historically faced capacity and security challenges, raising questions about whether adequate safeguards, audits, and breach-response protocols are in place before nationwide rollout.
The donation of 500 tablets to the Police, while welcomed, exposes another vulnerability: operational readiness. Technology alone does not guarantee effectiveness. Without consistent training, maintenance, and clear standard operating procedures, officers may revert to discretionary enforcement ironically increasing disputes rather than reducing them. Device malfunction or poor connectivity in remote areas could leave both police and motorists in limbo.
There is also the issue of digital exclusion. Although the verification system will offer USSD and SMS access, the E-Motor Card itself assumes a degree of digital literacy and device access. Older motorists, commercial drivers, and rural users may struggle to adapt, potentially facing fines or delays despite holding valid insurance.
From a regulatory standpoint, the system concentrates power and responsibility among insurers and regulators, but offers limited clarity on accountability when errors occur. If an insurer’s database fails to update a renewed policy in real time, who bears responsibility the driver, insurer, or enforcement officer?
Fraud risks, while reduced in some areas, may simply evolve. Digital forgery, QR spoofing, and identity mismatches are growing threats globally. Without continuous monitoring and system upgrades, fraudsters may exploit weaknesses faster than regulators can respond.
Finally, the broader concern is governance sequencing. Critics argue that Sri Lanka is digitising enforcement before fully strengthening consumer dispute mechanisms and data protection laws. In such a scenario, efficiency may come at the cost of fairness.
The E-Motor Insurance Card represents progressbut progress with conditions. Without strong safeguards, transparent oversight, and inclusive implementation, a tool designed to simplify compliance could instead expose new fault lines in Sri Lanka’s digital governance experiment.