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Securities and Exchange Commission of Pakistan (SECP) has issued 5 warning letters, 8 show-cause notices and an order to various insurance/takaful companies for failing to comply with corporate laws, insurance laws and accounting standards and regulations.
These warnings, show-cause notices and an order were issued by the Insurance Division in the month of February. Among these notices, one was issued to a takaful operator for compromising the principles of Shariah as envisaged in the Shariah Guidelines issued by the eminent Shariah scholars, whereas all others were issued to various insurance and takaful companies for not complying with the provisions of the 1984 Companies Ordinance, the 2000 Insurance Ordinance, and Rules and Regulations made thereunder.
The SECP also fined Pak Qatar Family Takaful Limited one million rupees for non-compliance with Section 76(1) read with Sections 95 and 156 of the Insurance Ordinance. The Insurance Division also initiated proceedings on the appeals filed against the orders of the federal insurance ombudsman. Three appellants were heard and two parties were brought to the point of settlement offers by the insurance companies, which they are yet to respond. The offers were made because of the SECP's mediation. Sixteen complaints received and satisfactorily handled during the month.

Copyright Business Recorder, 2013

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