Covid-19 outbreak: SECP issues guidelines to insurance policyholders

The Securities and Exchange Commission of Pakistan (SECP) has issued guidelines to the insurance companies to ensure continuity of services to insurance policyholders during coronavirus outbreak in the country.
According to the SECP guidelines issued here on Monday, in view of the disruption caused by the coronavirus (COVID-19), the Insurance Division through a circular instructed insurance companies to show its commitment to serve insurance policyholders by providing maximum relief and facilitation in all operational aspects related to insurance policies.
The guidelines extended to insurance companies covered the following major aspects including utilisation of digital payment modes for receipt of insurance premium and disbursement of claim payments.
Other areas included utilisation of electronic mediums such as SMS, emails, mobile applications, online portals etc. for claims handling, delivery of policy documents and issuance of pre-authorisations for treatment in hospitals.
The SECP guidelines also directed the insurance companies to consider providing coverage against claims incurred in non-panel hospitals along with recommendation for increasing list of panel hospitals.
The SECP guidelines also directed the insurance companies to waiver off non-mandatory documentary requirements for claims processing and use alternative methods for verifying authenticity of claims and consider extension in the grace period for payment of renewal premiums under insurance policies.
Insurers advised by the SECP to utilise Institutional Delivery System (IDS) Module: Due to the disruption caused by COVID-19, all the major segments of financial services sector have been impacted.
In order to ensure uninterrupted settlement of equity trades, insurance companies have been advised to perform their settlement by utilising the "Institutional Delivery System (IDS)" module of NCCPL, the SECP directed.
The SECP has initiated Assessment of the Effects of coronavirus on the Insurance Sector: In order to understand and analyse the effects of the coronavirus pandemic on the insurance sector in Pakistan, the Insurance Division has sought information from insurance companies to assess the impact of coronavirus outbreak on premiums, claims, commissions and investment performance of the insurance industry.
Furthermore, insurers have been advised to assess the disruptions caused due to coronavirus and the risks faced in relation to its services and operations and accordingly prepare a "plan" addressing how it shall manage the effects of the coronavirus outbreak, which shall cover challenges faced in all the functions and processes; preventive measures to be taken to mitigate risk of disruption; assessment of systems, policies and procedures and effective communication plan with all stakeholders.
The aforementioned measures have been taken to ensure continuity of business for the insurance sector and continuous availability of insurance coverage for the insurance policyholder, the SECP added.