BML 5.01 Decreased By ▼ -0.05 (-0.99%)
BOP 13.08 Increased By ▲ 0.08 (0.62%)
CNERGY 7.12 No Change ▼ 0.00 (0%)
CPHL 87.45 Increased By ▲ 1.38 (1.6%)
DCL 14.34 Decreased By ▼ -0.33 (-2.25%)
DGKC 170.76 Increased By ▲ 1.95 (1.16%)
FCCL 46.76 Increased By ▲ 0.59 (1.28%)
FFL 15.82 Decreased By ▼ -0.10 (-0.63%)
GCIL 26.87 Decreased By ▼ -0.39 (-1.43%)
HUBC 144.18 Increased By ▲ 2.27 (1.6%)
KEL 5.07 Decreased By ▼ -0.05 (-0.98%)
KOSM 6.69 Decreased By ▼ -0.20 (-2.9%)
LOTCHEM 20.59 Decreased By ▼ -0.41 (-1.95%)
MLCF 84.73 Increased By ▲ 0.66 (0.79%)
NBP 121.82 Decreased By ▼ -0.56 (-0.46%)
PAEL 43.46 Increased By ▲ 1.28 (3.03%)
PIAHCLA 22.29 Increased By ▲ 0.33 (1.5%)
PIBTL 8.93 Decreased By ▼ -0.06 (-0.67%)
POWER 14.01 Decreased By ▼ -0.08 (-0.57%)
PPL 169.94 Decreased By ▼ -0.01 (-0.01%)
PREMA 43.39 Decreased By ▼ -0.38 (-0.87%)
PRL 33.11 Increased By ▲ 0.24 (0.73%)
PTC 24.26 Decreased By ▼ -0.33 (-1.34%)
SNGP 119.64 Increased By ▲ 0.34 (0.28%)
SSGC 45.55 Increased By ▲ 0.38 (0.84%)
TELE 8.08 Decreased By ▼ -0.09 (-1.1%)
TPLP 10.47 Increased By ▲ 0.14 (1.36%)
TREET 23.97 Decreased By ▼ -0.18 (-0.75%)
TRG 58.05 Decreased By ▼ -0.80 (-1.36%)
WTL 1.52 Decreased By ▼ -0.03 (-1.94%)
BR100 13,631 Increased By 52 (0.38%)
BR30 39,851 Increased By 184.3 (0.46%)
KSE100 134,300 Increased By 517.4 (0.39%)
KSE30 40,814 Increased By 132.5 (0.33%)

LAHORE: An Insurance Tribunal has directed the Securities and Exchange Commission of Pakistan (SECP) to ensure availability of Universal Access Numbers and websites with insurance companies to answer policyholders’ questions.

It has also directed the insurance companies to appoint qualified insurance agents who can explain the policy terms and conditions to prospective policyholders.

In a recent case, which relates to the surrender claim of the policy, the policyholder claimed that she was not properly explained the terms and conditions of the policy at the time of selling the policy. The relevant insurance company also failed to produce training certificates of the agent during the proceedings.

After paying premiums for six years, the policyholder applied for surrender of the policy to fund their daughter’s marriage. However, the insurance company paid only one third of the claim while leaving the balance unpaid.

The policyholder argued that she had fully complied with the policy terms and conditions by paying premiums regularly and was therefore entitled to the surrender amount along with damages.

The Insurance Tribunal ruled in favour of the policyholder, directing the insurance company to pay the surrender amount along with damages.

The tribunal also emphasized the importance of insurance companies appointing qualified agents who can explain policy terms and conditions clearly to prospective policyholders.

It has further ruled that insurance companies must communicate clearly and transparently with policyholders throughout the policy cycle. This includes providing regular updates on the status of the policy, the creation of statutory funds, and the investment of premium amounts.

The Tribunal also emphasized the importance of using plain language in policy documents, so that policyholders can easily understand the terms and conditions of their policy.

Additionally, the Tribunal directed insurance companies to provide detailed illustrations of the policy benefits and terms, ensure that policyholders understand the policy terms and conditions before purchasing and invest premium amounts in companies with a high credit rating to protect the interests of policyholders.

The Tribunal also ruled that insurance companies must comply with the mandatory provisions of the law, and that failure to do so would have serious consequences.

Copyright Business Recorder, 2024

Comments

Comments are closed.