SECP unveils timelines for insurance claims

ISLAMABAD:

The Securities and Exchange Commission of Pakistan (SECP) has proposed new timelines for the settlement of insurance claims to strengthen consumer protection.

The proposed Insurance Market Conduct Rules 2026 will apply only to individual insurance policies. In a major step to safeguard the rights of insurance consumers, the SECP has released the draft rules for public consultation.

According to the details, the proposed rules aim to ensure the timely processing of claims, transparency and consumer protection. Mandatory timelines have been proposed for insurance companies to settle claims, while their responsibilities from the issuance of a policy to the payment of a claim will be clearly defined. Companies will be required to process and pay claims within the prescribed time limits.

Under the proposed rules, life insurance claims must be decided within 20 days of receiving the required documents. Motor insurance claims must be decided within five days of receiving the survey report, while other non-life insurance claims must be decided within seven days of the survey.