Securities and Exchange Commission of Pakistan recommends to Law Division to establish insurance tribunal in Islamabad

Islamabad, January 22, 2015 (PPI-OT): The SECP has written to the Law and Justice Division, recommending it to establish a specialized and independent insurance tribunal in Islamabad in accordance with the provisions of the 2000 Insurance Ordinance to clear up the backlog of pending cases.

The SECP has pointed out to the law ministry that in 2006 with the approval of the chief justices of relevant High Courts, the federal government had conferred the powers of the insurance tribunal on district and sessions judges in Karachi, Lahore and Peshawar. Yet due to heavy workload in sessions courts the SECP’s complaints have been pending for the last five years. “The desired results could not be achieved as no relief was provided to the aggrieved policyholders.”

Thus, in order to provide speedy justice to the aggrieved policyholders, the SECP is in favour of establishing independent and exclusive insurance tribunals as envisaged under sections 121, 122 and 123 of the Insurance Ordinance.

The SECP has offered to provide office space to specialized tribunals at its offices in Islamabad, Lahore, Peshawar, Faisalabad, Multan, Quetta and Karachi. The SECP has also pointed out that it has no objection to the Law and Justice Division’s proposal to confer the powers of the insurance tribunal on the district and sessions judge as an interim arrangement.

Meanwhile, the SECP has started formulating regulations for the small dispute resolution committees. These committees will arbitrate between insurance companies and the policyholders.

For more information, contact:
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254

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