Complaints against insurance companies: Policyholders told not to approach SECP

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed the insurance policy holders not to approach the SECP in the first stage for filing of their complaints or grievances regarding an insurance policy against the insurance companies, agents and bank representatives.

According to a circular number 27 of 2020 issued by the SECP here on Tuesday, the commission has asked the insurance policy holders to first approach the relevant insurance company, and in case their complaints are not entertained, only then approach the other forums including the SECP.

In order to communicate and create awareness among policyholders about the availability of complaint resolution forums, the SECP had issued Circular No 5/2016 dated January 26, 2016, Circular No 36/2017 dated December 12, 2017, and Directive vide SRO 1405(1)/2018 dated November 16, 2018.

This has been mentioned by the SECP through Circular No 27 of 2020 (Awareness among policyholders about availability of forums for resolution of their grievances) issued by the SECP on Tuesday.

In this context, it has been observed that without first approaching the respective insurer, the complainants/policyholders are directly filing their complaints with the SECP.

In view of this fact, amendments in the annexure to the Circular No 5/2016 have been made to ensure that complainants/policyholders as a first step, approach the respective insurer, and in case their grievances are not resolved, they may file their complaints to other grievance handling forums.

The circular No 5 of 2016 requires following from insurers:

I. Fix the notice board(s) containing the attached 'awareness message' in both Urdu as well as English languages at prominent places at head office and branch offices where general public or the policyholders pay frequent visits including bank branches authorized to offer bank assurance products to the general public.

II. Upload the attached 'awareness message' on their (insurance companies) respective websites under the heading of "Complaints Resolution Forums" in both Urdu as well as English languages.

III. Print the attached 'awareness messages on all the forms, ie, policy illustrations, proposal forms, policy documents and claim forms on conspicuous position in both Urdu as well as English languages.

The insurance companies shall take all necessary steps to ensure that the changes are reflected in the policy documents, notice board(s) and website with effect from October 1, 2020, the SECP concluded.

The SECP has informed policy holders that the complaints against the insurance companies should not be filed with the SECP in the initial phase.

At the first stage, the complaints should be filed with the relevant insurance company.

In case, if the insurance company fails to address policy holders' grievance, the complaints may be filed with other external independent forums: Federal Insurance Ombudsman; or respective Official Coordinator, Small Disputes Resolution Committee -Karachi Specialized Companies Division; Official Coordinator, Small Disputes Resolution Committee -Lahore Company Registration Office - Lahore, and Official Coordinator, Small Disputes Resolution Committee-Islamabad Insurance Division, Blue Area, Islamabad.

At the later stage, the complaint against an insurance company may also be filed with the SECP (insurance regulator in Pakistan) at the SECP NIC Building, 63-Jinnah Avenue, Blue Area, Islamabad.

Copyright Business Recorder, 2020