SECP orders insurance companies to train their agents

Issues circular warning of punitive action if found in violation.

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has directed all the insurance companies to make sure that their insurance agents are properly qualified and have completed their respective foundation courses.

A circular issued by the SECP’s Insurance Division has stated that the insurance companies need to make sure that their agents meet the statutory requirements.

An SECP statement here on Friday said that all insurance companies are directed to ensure that no person is appointed as an agent unless he has the minimum prescribed qualifications and has completed the respective foundation course within the time period as specified in the statutory provisions. This mandatory requirement has also been prescribed in Sub-Rule (b) of Rule 26 of the 2002 SECP (Insurance) Rules, issued in pursuance of Section 97 of the 2000 Insurance Ordinance.

According to the law, the agents operating in the non-life insurance business shall be required to complete the foundation course of the Pakistan Insurance Institute, within a period of three years and agents operating in the life insurance business shall have to complete a three-month-long foundation course to be organised by the relevant insurance company.     The insurance agents, who have not completed their respective foundation course within the stipulated time, must complete the same by September 30, 2013.

In case of non-compliance, any business or transaction carried out by any agent, lacking requisite qualifications, shall be treated as null void and no payment of commission can be made to them.

Published in The Express Tribune, March 16^th, 2013.

Like Business on Facebook to stay informed and join in the conversation.