The Securities and Exchange Commission of Pakistan (SECP) has proposed stricter rules for insurance claim assessments, including deadlines for surveyors and fines of up to Rs. 1 million for violations.
Under the proposed amendments to the Insurance Rules, 2017, insurers would have to inform policyholders about the documents required for a claim within seven days.
Surveyors would be required to submit assessment reports within 15 days for motor insurance claims and 30 days for other insurance claims.
The proposals are intended to improve accountability, reduce delays in claim processing and strengthen protections for policyholders. The SECP has issued a concept paper on insurance surveyors and invited stakeholder feedback before preparing detailed amendments.
Proposed Deadlines for Insurance Claim Assessments
Under the proposed framework, insurance surveyors would be expected to complete assessments within the prescribed time limits. Extensions would be allowed only in exceptional circumstances.
For motor insurance claims, an extension would be limited to 30 days, while the total extension period for delayed reports would not exceed six months.
Surveyors would also have to explain the reasons for delays and provide progress updates every 30 days after the original deadline.
The proposed rules aim to make the claims process more predictable for customers while requiring surveyors to account for delays.
Rules for Missing Documents and Customer Disputes
The SECP has also proposed a procedure for cases in which policyholders fail to provide the documents needed to assess a claim.
Surveyors could proceed with an assessment using the available information after sending at least two written reminders to the customer. The reminders would have to be separated by at least five days.
The proposals would also allow policyholders to appoint their own licensed surveyors at their own expense where their insurance policies permit it. Insurers would be required to consider the findings of these surveyors during claim settlement.
Customers could also challenge the appointment of a surveyor on grounds such as a conflict of interest or a previous dispute.
Licensed Surveyors to Be Required for Certain Claims
Under the proposed rules, licensed surveyors would be mandatory for motor insurance claims exceeding Rs. 50,000 and other insurance claims exceeding Rs. 100,000.
Surveyors would have to maintain claim records, photographs and supporting documents for at least five years. They would also be required to follow professional standards relating to impartiality, confidentiality and conflicts of interest.
The measures are intended to improve the reliability of assessments and provide a clearer record of how insurance claims are evaluated.
SECP Proposes Fines for Non-Compliance
The proposed framework includes fines of up to Rs. 1 million for violations, along with an additional penalty of up to Rs. 10,000 per day for continuing non-compliance.
The SECP is also proposing stricter qualification and training requirements for surveyors. Specified professionals would need to complete at least 24 hours of professional development annually.
Minimum professional indemnity insurance would be set at Rs. 1 million or Rs. 3 million per event, depending on annual revenue, under the proposed framework.
New Oversight Requirements for Insurers
Non-life insurance companies would also be required to establish board-approved policies for appointing surveyors, assigning cases and monitoring their performance.
These policies would be intended to strengthen internal oversight and make insurers more accountable for the way claim assessments are managed.
The proposals remain at the consultation stage. The SECP is seeking feedback from stakeholders before drafting detailed amendments, meaning the requirements and deadlines should not yet be treated as final rules in force.
If adopted, the framework could introduce clearer timelines and stronger professional standards for insurance claim assessments in Pakistan.
