Securities and Exchange Commission of Pakistan (SECP) has issued a licence to the Sahara Insurance Company Limited (SICL), a wholly-owned subsidiary of the Employees Old Age Benefits Institution (EOBI), to transact non-life insurance business in the country.
With continuing emphasis on social insurance, the EOBI decided to incorporate the SICL with the primary objective of providing health insurance coverage to the EOBI pensioners, aged between 60 and 70. In addition, accidental death and disability coverage will also be provided to expatriate Pakistanis working abroad. In case of health insurance, the premium will be funded by the Workers Welfare Fund while premiums for accidental death and disability insurance will be paid directly by the expatriate Pakistani labour force to Sahara Insurance Company Limited (SICL).
It is important to note that the last time a licence was issued by the SECP to an insurance company was in 2009, and that was to a life insurer. With this move, it is anticipated that the health insurance sector in Pakistan will witness visible growth, while holistically improving insurance penetration and density figures that have remained one of the lowest in the region.
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