Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has concluded adjudication proceedings against six insurance companies in July and August 2017.
Orders were issued against their chief executives, directors and companies for violating provisions of the Insurance Ordinance, 2000, said in statement issued by SECP here on Thursday.
The majority of these proceedings pertained to the failure of the insurance companies to meet the sound and prudent criteria under Insurance Companies (Sound and Prudent Management) Regulation 2012, failure to settle policyholders’ complaints and non-compliance with provisions regarding reinsurance.
The SECP initiated seven new proceedings by issuing show-cause notices to insurers.
These notices pertained to failure of companies to comply with directive related to know-your-customer, failure in filing of financial statements, misstatement on the website and failure to comply with the Code of Corporate Governance for Insurers, 2016.
The underlying objective of such action was to ensure compliance with the existing insurance laws thereby protecting the interests of the shareholders and policyholders.
In one of the cases, the company was directed to cease entering into new contracts of insurance.
The company was further directed to settle all policyholders’ complaints/liabilities.
In another case, a company placed 95 percent of the risk abroad and circumvent the requirements of Rule 18 of the Insurance Rules, 2017 of circulating the risk in the market and obtaining the Commission’s permission.
Furthermore, the SECP disposed of 75 complaints about insurance policyholders since July.
It expeditiously addressed the complaints filed by insurance policyholders or their legal heirs against the insurance companies.
The SECP in its resolve to give prompt relief to the policyholders, disposed of 75 complaints at the start of this financial year.
Most of these complaints were settled to the satisfaction of the policyholders as they were given proper relief in respect of their complaints.
Accordingly, a relief of Rs5,352,866 was given to the policyholders through complaints resolution during these two months.
Effective and efficient resolution of complaints of the aggrieved policyholders reflect the SECP’s commitment to reforming and developing the insurance industry.
SECP is totally Corrupt Department who allow Owner of Mazhar Rafique M R Securities CEO to go Aboard with 1900 Clients hard earn money approx 300 Crore / 3 ARAB PKR. Clients loose every thing just because negligence of SECP Regulator who get some money from Owner of M R Security Pvt Ltd PSX/291 TREC Licence Holder on monthly Basis.
Even he sold out Clients Shares which clients purchased and put into CDC Account. Its our humbly request to the concern department at least please give us back our shares which is under PSX Custody with out any reason and delaying time for what????
Newly Joined Chinese Management request to please resolve this issue. PSX and SECP did audit just before 3 months and according to the record every thing is fine and he get Clearance letter why why why ……?????