SECP passes orders against insurance companies

Three orders issued against Takaful company, one against life insurer.

KARACHI: The Securities and Exchange Commission (SECP) passed orders on Tuesday against a Takaful provider and a life insurer for breaching the Insurance Ordinance, 2000 and the Companies Ordinance, 1984.

According to a press statement issued by the equity market watchdog, three orders were issued against a Takaful company for not complying with the provisions of the Insurance Ordinance, 2000 and the Companies Ordinance, 1984, of which one order was related to interpretation of the exemption given under proviso to Section 187(h) of the Companies Ordinance, 1984.

On the other hand, one order was passed against a life insurance company under the Insurance Ordinance, 2000 as result of adjudication of an appeal against the order of the Federal Insurance Ombudsman.



In April, the SECP issued 13 warning letters, four show-cause notices to various insurance and Takaful companies for contravening the various provisions of corporate laws, insurance laws and related accounting standards and regulations.

These warnings, show-cause notices, and orders were issued by the Insurance Division of the SECP after conducting 13 hearings.

To maintain transparency and provide equal opportunity to all insurance surveyors, the Pakistan Insurance Institute has been mandated to examine and check competency of surveyors, on the basis of which SECP will issue a licence.

Published in The Express Tribune, May 8^th, 2013.

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