SECP proposes Rs 1 million fines for insurers that delay claims: 7-day document rule, 15-day motor surveys
Proposed changes to the Insurance Rules 2017 would put every claim on a clock and let policyholders bring their own surveyor. Here is the timeline and what it means for you.
Insurance claims in Pakistan would have to be assessed on a fixed clock under rules the Securities and Exchange Commission of Pakistan (SECP) has proposed: insurers would get seven days to tell you which documents a claim needs, surveyors 15 days to report on a motor claim and 30 days on other claims, and a company that misses the deadlines could be fined up to Rs 1 million, plus up to Rs 10,000 a day while the breach continues, ProPakistani reported on Tuesday.
The changes are proposed amendments to the Insurance Rules, 2017. They are not in force yet: the SECP has put out a concept paper for comments from insurers, surveyors and the public before it drafts the final text, and no effective date has been given.
The proposed claim timeline
| Step | Deadline |
|---|---|
| Insurer tells you which documents it needs | 7 days |
| Surveyor's report, motor claim | 15 days |
| Surveyor's report, other claims | 30 days |
| Extension, motor claim | 30 days at most |
| All extensions together | 6 months at most |
After a missed deadline the surveyor would have to explain the delay in writing and send progress updates every 30 days.
What changes for policyholders
- You know what to send, quickly. The seven-day document list ends the back and forth that holds many car and health claims up for weeks.
- A claim cannot stall on paperwork forever. If you do not send the documents, the surveyor can finish the assessment on what is available, but only after two written reminders at least five days apart.
- Your own surveyor. Where the policy allows, you could hire a licensed surveyor at your own cost, and the insurer would have to consider that report when settling.
- Challenge a conflict. You could object to a surveyor who has a conflict of interest or a past dispute with you.
- Licensed surveyors made compulsory for motor claims above Rs 50,000 and other claims above Rs 100,000.
Rules for surveyors and insurers
Surveyors would keep claim records, photographs and documents for at least five years, complete 24 hours of professional training a year and carry professional indemnity cover of Rs 1 million or Rs 3 million per event, depending on their revenue. Non-life insurers would need board-approved policies on how surveyors are appointed, assigned cases and monitored.
What to do now
Nothing changes on your current claim until the rules are notified. If a claim is stuck today, the Insurance Ombudsman and the SECP's complaint service already take complaints against insurers. Buying a car on finance? Our car loan calculator shows the monthly instalment. More on the regulator's recent actions: SECP penalties of Rs 4.73 billion this year.
Frequently asked questions
- How long does an insurance company in Pakistan have to settle a claim survey under the SECP proposal?
- Surveyors would have 15 days to report on a motor claim and 30 days on other claims, after the insurer has told you within 7 days which documents it needs. The rules are proposed, not yet in force.
- What is the fine for insurers that delay claims?
- Up to Rs 1 million, plus up to Rs 10,000 a day while the non-compliance continues, under the SECP proposal.
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