Insurance companies asked to smoothen claims processing

Published May 12, 2020
SECP has written to insurance companies to consider extension in grace period of payment of renewal premiums under insurance policies. — Dawn/File
SECP has written to insurance companies to consider extension in grace period of payment of renewal premiums under insurance policies. — Dawn/File

ISLAMABAD: The Securities and Exchange Commission (SECP) has asked insurance companies to waive non-mandatory requirements for claims processing and use alternative methods for verifying their authenticity to facilitate insurance policyholders during the pandemic.

The SECP has been continuously taking measures to extend every possible relief and facilitation to companies and persons connected therewith being investors, borrowers or policyholders amid the Covid-19 crisis.

The SECP has written to insurance companies to consider extension in grace period of payment of renewal premiums under insurance policies.

Moreover, insurers have been encouraged to utilise digital or online payment modes for receipt of insurance premium and disbursement of claim payments. Furthermore, they have been urged to utilise electronic mediums such as SMS, emails, mobile applications, online portals etc. for claims handling, delivery of policy documents and issuance of pre-authorisations for treatment in hospitals.

Taking into account the anticipated low claim ratio in motor insurance business due to lockdown, the SECP has recommended insurance companies to pass on the benefit to policyholders by granting one month free of cost extension in insurance coverage to all motor insurance policyholders.

Published in Dawn, May 12th, 2020

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...