March 26, 2020: Amid the outbreak of COVID-19 (Coronavirus) in Pakistan, the Securities and Exchange Commission of Pakistan (SECP) has issued guidance to insurance companies for imparting maximum facilitation to insurance policyholders and claimants during this difficult time.
The outbreak of Coronavirus has caused disruption to everyday lives and routine of all persons including insurance policyholders; hence, it was felt important that the insurance policyholders are provided with maximum relief and facilitation in all operational aspects related to insurance policies in such testing times.
SECP has encouraged insurance companies to use digital or online payment modes for receipt of insurance premium and disbursement of claim payments. Insurers have been advised to consider the utilization of electronic mediums such as SMS, emails, WhatsApp or mobile phones, etc for handling claims, delivery of policy documents, and issuance of pre-authorizations for treatment in hospitals.
Insurers have been further advised to consider waiving off non-mandatory documentary requirements for claims processing and have been encouraged to use alternative methods for verifying the authenticity of claims in case claimants are unable to furnish a particular document due to unavoidable circumstances.
SECP believes that such measures will aid in improving the policy servicing to insurance policyholders in current scenarios and will ultimately lead towards the creation of healthy relationships between insurers and insurance policyholders.