Amendments: SECP raises value of claims for insurance policy holders

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) on Wednesday notified amendments to Rule 6 of the Small Dispute Resolution Committees (Constitution and Procedure) Rules, 2015, in exercise of the powers conferred under Section 117 of the Insurance Ordinance, 2000.

The limits of disputes being arbitrated by the SECP as prescribed under the rules were quite nominal, so majority of the disputes did not fall within the jurisdiction of the committees, according to a press release.

Therefore, the limits of pecuniary value of claims have been increased to Rs2.5 million for motor/life insurance policies and Rs5 million for domestic insurance policies.

There was a great need to raise the pecuniary limits of the claims to be arbitrated by these committees. It will complement the existing grievance forums (ombudsman and tribunals) and reduce workload on these forums.

Published in The Express Tribune, February 2^nd, 2017.

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