The Securities and Exchange Commission of Pakistan (SECP) issued five warning letters, eight show-cause notices and one order to various insurance companies for failing to comply with corporate laws, insurance laws and accounting standards and regulations.
The warnings, show-cause notices and the order were issued by the SECP Insurance Division in February.
Among these notices, one was issued to a takaful operator for compromising the principles of Shariah as envisaged in the Shariah Guidelines issued by eminent Shariah scholars, whereas the remaining notices were issued to various insurance and takaful companies for not complying with the provisions of the 1984 Companies Ordinance, the 2000 Insurance Ordinance, and rules and regulations made under them.
The SECP also fined Pak Qatar Family Takaful Limited an amount of one million rupees for non-compliance with Section 76(1) read with Sections 95 and 156 of the Insurance Ordinance.
The Insurance Division also initiated proceedings on appeals filed against orders of the federal insurance ombudsman. Three appellants were heard and two parties were brought to the point of settlement offers by the insurance companies, to which they are yet to respond.
The offers were made owing to the SECP’s mediation. Sixteen complaints were received which were satisfactorily handled during the month.