Insurance policy: ICAP's properties shall fall within definition of public property: SECP

The Securities and Exchange Commission of Pakistan (SECP) has declared that any kind of insurance of properties, whether movable or immovable owned by Institute of Chartered Accountant of Pakistan (ICAP), shall fall within the definition of "public property" in light of Section 166 of the Insurance Ordinance, 2000.
According to a recent order issued by the SECP, the commission said that the ICAP has been established through an act of parliament named as "Chartered Accountants Ordinance, 1961", and thus, it becomes imperative to declare ICAP as a "statutory corporation" in terms of Section 166 of the Ordinance. So, any kind of insurance of properties, whether movable or immovable owned by ICAP, shall fall within the definition of "public property" in light of Section 166 of the Ordinance.
And the same treatment would also apply to the Virtual University of Pakistan. Therefore, the insurance company issued insurance policies to ICAP and VU in violation of Section 166 of the Ordinance.
The SECP has disposed of the proceedings initiated against the chief executive and directors of an insurance company (company) for alleged non-compliance with Section 166 read with Section 156 of the Insurance Ordinance, 2000 (the "Ordinance"). The chief executive and directors of the Company shall be referred to as the "Respondents" hereinafter.
The SECP stated that the written comments and arguments of the Respondents have been reviewed. The Respondents are of the opinion that the Government of Pakistan has published classification of all public sector entities ie the ministries and their respective associated departments/corporations under which ICAP has not been classified as a public sector entity.
Moreover, as per the Respondents, ICAP has itself claimed to be an autonomous body registered under Chartered Accountants Ordinance, 1961 despite appointment of four Government nominees on its council and that does not fall in the category of public sector. The Respondents however have admitted that the policy issued to Virtual University of Pakistan was in violation of 166 of the Ordinance, and the Company intends to withdraw it after expiry of the current insurance policy treating it as a public sector entity.
It is pertinent to mentioned that by virtue of the definition of the public property as laid down under Section 166 of the Ordinance, any property, movable or immovable, which belongs to, or the safety of which is the legal responsibility of a statutory corporation shall be deemed to be the public property. And, Section 166 of the Ordinance has also defined the term "statutory corporation" as a body corporate, other than a company, established or set up by the Federal Government or a Provincial Government in pursuance of any law, SECP added.
In the above quoted response of the Respondents, it appeared that the Respondents considered the Institute of Chartered Accountants of Pakistan (ICAP) as a non-public sector organisation/statutory corporation and that it did not fall within the scope of Section 166 of the Ordinance. However, the Respondents admitted that the VU was a public sector organisation, and that the Company violated the provisions of Section 166 of the Ordinance issuing a policy to the said university.