SECP Announces New Fine for Insurance Companies

In practice, the Securities and Exchange Commission of Pakistan (SECP) has proposed new rules requiring insurers to complete claim assessments within 15 to 30 days or face fines of up to Rs.

Key points

• Under the proposed amendments to the Insurance Rules, 2017, insurers would have to inform policyholders regarding required documents within seven days.
• Surveyors would have to retain claim records, photographs and supporting documents for at least five years and follow professional standards on impartiality, confidentiality and conflicts of interest.
• Non-life insurers would additionally need board-approved policies for appointing surveyors, assigning cases and monitoring their performance.
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• SECP has issued a concept paper on insurance surveyors for stakeholder feedback before drafting detailed amendments.

Under the proposed amendments to the Insurance Rules, 2017, insurers would have to inform policyholders regarding required documents within seven days. Surveyors would have 15 days to submit reports for motor insurance claims and 30 days for other claims. SECP Registers 5, 241 New Firms in September.

In practice, the proposals would restrict extensions for delayed reports to exceptional cases. While the total extension period would not exceed six months, extensions for motor insurance claims would be limited to 30 days. Surveyors would have to explain delays and provide progress updates every 30 days after the deadline.

If customers fail to provide required documents, surveyors could complete assessments using available information after sending at least two written reminders, with a gap of at least five days between them.

In practice, the proposed rules would additionally allow policyholders to hire their own licensed surveyors at their expense where their insurance policies permit it. Insurers would have to consider their findings during claim settlement. Customers could additionally challenge a surveyor's appointment over conflicts of interest or previous disputes.

Licensed surveyors would be mandatory for motor insurance claims exceeding Rs. 50, 000 and other insurance claims exceeding Rs. 100, 000.

Notably, the SECP has proposed fines of up to Rs. 1 million for violations, plus an extra penalty of up to Rs. 10, 000 per day for continuing non-compliance. SECP Announces New Registration Rules for Cannabis.

For context, the proposals additionally include stricter qualification and training requirements, at least 24 hours of annual professional development for specified professionals, and minimum professional indemnity insurance of Rs. 1 million or Rs. 3 million per event, depending on annual revenue.

Non-life insurers would additionally need board-approved policies for appointing surveyors, assigning cases and monitoring their performance. Stay Connected with ProPakistani.

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In short, SECP Announces New Fine for Insurance Companies is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.