Ceylinco Insurance PLC vs Z.O.A (Formerly Z.O.A Refugee Care Netherlands) – SC APPEAL 173/2018-2024

The case between Z. O. A. and Ceylinco Insurance PLC addressed the enforcement of arbitration provisions under insurance policies incorporating a Terrorism Endorsement. The legal inquiry focused on whether disputes arising from terrorism‑related losses fell within the arbitration agreement and on the proper allocation of liability as prescribed by the policy terms. It was determined that the arbitration clause exclusively governs the contractual relationship and that any liability under the terrorism cover accrues in favor of the insurer, thereby affirming the High Court decision.

E. A. G. R. Amarasekara, J. — It was determined that the factual background, including the procurement of insurance cover for fleet vehicles and the involvement of the National Insurance Trust Fund, establish