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SECP Not To Amend Insurance Ordinance

The Insurance (Amendment) Bill was intended to maximise the capital limit from Rs1 million to Rs500 million for life insurance business

Securities and Exchange Commission of Pakistan has withdrawn its proposed amendments in Insurance ordinance, 2001, by stating that the amendments were moved in haste and without considering all stakeholders into consultation – reported Daily Times.

Salman Ali Sheikh, chairman of SECP, along with Salman Ghani, Federal Secretary Commerce has placed joint request before the National Assembly Standing Committee on Commerce for the withdrawal of proposed amendments.

Reportedly, the committee had a meeting in the chairmanship of the Khurram Dastgir Khan, MNA in the parliament house. SECP chairman, Salman Ali Sheikh conveyed the committee that Insurance (Amendment) Bill was initially passed through Finance Bill 2008 in haste.

The bill was considered without formal discussions with stakeholders and proper research on the issue involved in the subject since before their formal approval, this bill along with few other bills was excluded from the Finance Bill at last minute due to the reservations expressed by the stakeholders.

The Insurance (Amendment) Bill was intended to maximise the capital limit from Rs1 million to Rs500 million for life insurance business and from Rs1.5 million to Rs300 million for starting non-life insurance business in the country.

The main amendment was the proposed registration of foreign re-insurance brokers or agents in Pakistan. The representative from Insurance Association of Pakistan strongly opposed this amendment and urged SECP not to register them and allow them to come to Pakistan, otherwise the country would be left with only two registered re-insurance agents, quoted the Pakistan-based newspaper.