Insurance Ombudsman

Business Recorder in its editorial of November 19, wrote: "The appointment of the Insurance Ombudsman and the turning down of the officer by the appointee, apparently a rare sight in this country, should not mystify anyone, because of the patent illegality of the appointment notification, discovered later.
Chapter 125 of the Insurance Ordinance 2000 that deals with the appointment and functions of the Ombudsman clearly debars any person from appointment to this office who has been during the two years prior to appointment employed with an Insurance Corporate."
THIS SUB-SECTION 4 OF SECTION 125 OF THE INSURANCE LAW OF 2000 STATING: "The Insurance Ombudsman shall not hold any other office of profit in the service of Pakistan or occupy any other position carrying the right of remuneration of the rendering of services, and shall not during the two years immediately prior to his appointment have held any office in anybody corporate carrying insurance business in Pakistan," should not preclude M.A. Lodhi for the position of Insurance Ombudsman on account of the following reasons:
a) Summary was sent by the Ministry of Commerce to the Establishment Division.
b) Establishment Division asked Ministry of Commerce to attach the Insurance Ordinance 2000 with the summary under which Insurance Ombudsman was to be appointed.
c) Establishment Division after having examined and processed the case sent it to the Prime Minister's Secretariat.
d) Prime Minister's Secretariat sent it to Ministry of Law for examining the case.
e) Ministry of Law sent summary for approval to the Prime Minister's Secretariat. It was only after the scrutiny and processing of the case by the Establishment Division and Ministry of Law that the Prime Minister's Secretariat approved it.
f) The notification dated November 15, 2005, was issued specifically states that Maudood Ahmad Lodhi is appointed as Federal Insurance Ombudsman under Section 125 of Insurance Ordinance, 2000 with immediate effect.
It inter-alia means that the Prime Minister's Secretariat has also gone through the Section 125 and deemed to have waived the condition of two years gap.
Therefore, there is no need to specifically mention that two years' gap has been waived. When the Competent Authority makes an appointment, it is presumed that he had considered this Clause.
As such, it is deemed to have been waived whereas in this case it has been specifically stated that the incumbent has been appointed under Section 125 of Insurance Ordinance, 2000, which clearly means that the Competent Authority and all Ministries/Division had scrutinised the case properly, before issuing the notification of 15th November, 2005.
The selection of Lodhi was very appropriate as he is the man of integrity, has vast experience of life and non-life insurance business, his academic qualifications are excellent.
He was the correct choice for the post of Insurance Ombudsman.