SECP issues directive to protect insurance policyholders

In order to raise awareness among the public about availability of the insurance policyholders' grievance resolution forums, the Securities and Exchange Commission of Pakistan (SECP) has issued a circular requiring all insurers to incorporate awareness message in Urdu and English on their websites, and to attach it with all forms issued to the policyholders.

The Securities and Exchange Commission of Pakistan has further directed that notice boards containing the said awareness message in both languages should also be placed at prominent places frequented by the public or policyholders, including bank branches authorized to offer bancassurance products, says a state- ment issued by the Commission here yesterday. In line with its fundamental objective to protect the interests and secure fair treatment to the policyholders, the SECP has issued Circular No. 5 of January 26, 2016, whereby all insurers have been directed to incorporate awareness message regarding the insurance policyholders' grievance resolution forums, i.e. the federal insurance ombudsman and three small dispute resolution committees in Karachi, Lahore and Islamabad in Urdu and English on their websites, and to attach it with all forms issued to the policyholders.

The SECP has further directed that notice boards containing the aforesaid awareness message in both languages should also be placed at prominent places frequented by the public or policyholders, including bank branches authorized to offer bancassurance products.

The awareness message informs the insurance policyholders about the availability of the remedies available to them in the form of the office of the federal insurance ombudsman and the small dispute resolution committees, in case they have any complaint or grievance against an insurer, broker, agent, surveyor or even a bank carrying on bancassurance business.

The Securities and Exchange Commission of Pakistan firmly believes that by creating awareness about the complaints resolution forums, the insurance policyholders would be able to seek redress of their grievances in a timely manner as and when they have any complaint or grievance against an insurer and/or other insurance intermediaries.