Compensating road accident victims: SECP proposes implementation of motor 3-party liability insurance scheme

The Securities and Exchange Commission of Pakistan (SECP) has proposed implementation of motor third-party liability insurance scheme to compensate road accident victims. According to the SECP annual report for 2014-15, the SECP has constituted Small Dispute Resolution Committees under section 117(1) of the Insurance Ordinance, 2000. It proposed enhancement of paid-up capital of insurance companies from Rs 500 million to Rs 700 million for life insurance companies and from Rs 300 million to Rs 500 million for non-life insurance companies in a phased manner.
It also proposed establishment of insurance repository and proposal for effective implementation of compulsory group life insurance. It proposed revision of insurance regulatory framework with technical assistance from the FIRST Initiative/World Bank. It also proposed reforms to bring indirect insurance brokers within the SECP's regulatory ambit and strengthening the regulatory regime for direct insurance brokers.
It proposed strengthening the regulatory regime for insurance surveyors and development of Credit and Surety Ship Rules, 2015 for imposing conditions on insurance companies offering insurance guarantee products.
The SECP said efforts were underway to be fully compliant to ICPs of IAIS by the end of the next financial year and seeking a formal assessment by IAIS and Code of Corporate Governance for Insurance Sector is being developed. During the financial year (2014-15), the SECP renewed the licenses of "seven" direct insurance brokers and issued fresh licenses to "five" insurance brokers, which raised the total number of registered direct insurance brokers to 12. Licensing of surveyors and authorised surveying officers. During the period under review, the Insurance Division has also approved 413 licenses of authorised surveying officers and 251 surveyors during the period under review, SECP added.