SECP aims to boost insurance penetration to 1.5%, introduce 'No-Fault Rule'

February 12, 2025 (MLN): InsureImpact 2025, a five-year plan aimed at increasing insurance penetration in Pakistan from the current level of nearly 0.8% to 1.5%, includes Journey Life Insurance introducing the adoption of a "No-Fault Rule."

This was said by Akif Saeed, Chairman of the Securities and Exchange Commission of Pakistan (SECP) while addressing a media briefing.

Under this rule, the focus will be on compensating the person who has suffered the damage, he added.

The insurance claim will start from Rs500,000, a significant improvement compared to the Rs20,000 legal compensation currently awarded by courts, which often discourages victims from pursuing claims.

He emphasized that this ambitious plan will require extensive awareness creation and collaboration to ensure its success.

The SECP, in collaboration with the Central Depository Company (CDC), has also launched a Centralized Motor Insurance Repository to revolutionize the motor insurance landscape.

This repository is expected to improve underwriting practices, and combat insurance fraud by providing a centralized digital database for motor insurance policies.

Insurance will now extend to multiple sectors, Akif Saeed further noted.

SECP plans to introduce social insurance in collaboration with the Benazir Income Support Program (BISP), providing coverage to vulnerable segments of society.

Mujtaba Ahmad Lodhi, Commissioner Insurance, SECP, highlighted SECP’s efforts in modernizing insurance regulations, strengthening mandatory insurance enforcement, and enhancing industry oversight.

Copyright Mettis Link News