Key Takeaways
- SECP has proposed new rules for insurance companies to complete claim assessments within 15 to 30 days.
- Insurers failing to meet deadlines could face fines of up to Rs. 1 million.
- The proposals include stricter qualification and training requirements for surveyors.
The Securities and Exchange Commission of Pakistan (SECP) has proposed new rules to expedite insurance claims assessment, aiming to reduce delays and improve customer satisfaction.
Under the proposed amendments to the Insurance Rules, 2017, insurers are required to inform policyholders about necessary documents within seven days, with surveyors having 15 days to submit reports for motor insurance claims and 30 days for other claims.
Extensions for delayed reports would be limited to exceptional cases, with a maximum of 30 days for motor insurance claims and a total extension period not exceeding six months.
Surveyors would have to explain any 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.
The SECP has also proposed allowing policyholders to hire their own licensed surveyors at their expense, provided their insurance policies permit it. Insurers would have to consider these findings during claim settlement.
Customers could challenge a surveyor’s appointment over conflicts of interest or previous disputes, with licensed surveyors mandatory for motor insurance claims exceeding Rs. 50,000 and other insurance claims exceeding Rs. 100,000.
The proposed rules also include stricter qualification and training requirements, with 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 need board-approved policies for appointing surveyors, assigning cases, and monitoring their performance. The SECP has proposed fines of up to Rs. 1 million for violations, plus an additional penalty of up to Rs. 10,000 per day for continuing non-compliance.
