SECP issues warning to insurance companies

The Securities and Exchange Commission of Pakistan (SECP) has issued five warning letters, eight showcause notices and one order to various insurance/ takaful companies for "failing to comply with corporate laws, insurance laws and accounting standards and regulations".

An announcement to this effect was made in a statement issued here on Wednesday. It said that these warnings, showcause notices and order were issued by the Insurance Division in the month of Feb. Among these notices, one was issued to a takaful operator for compromising the principles of Shariah as envisaged in the Shariah Guidelines issued by the eminent Shariah scholars, whereas all others were issued to various insurance and takaful companies for "not complying with the provisions of the 1984 Companies Ordinance, the 2000 Insurance Ordinance, Rules and Regulations made there under", the SECP statement added.

It said that the Insurance Division also initiated proceedings on the appeals filed against the orders of the federal insurance ombudsman.

Three appellants were heard and two parties were brought to the point of settlement offers by the insurance companies, which they are yet to respond. The offers were made because of the SECP's mediation.Sixteen complaints were received and satisfactorily handled during the month, it added.