The Securities and Exchange Commission of Pakistan (SECP) has announced new annual supervision fee (year 2015) for the insurance companies. In this regard, the SECP has issued a circular number 2 of 2014 here on Wednesday. According to the circular, the fee would be greatest of Rs 100,000 or Rs 2.00 per 1000 of the gross direct premium written in Pakistan during the year 2013, subject to a maximum of Rs 50 million.
The circular said that attention is drawn towards the 'Condition Imposed on Registered Insurers' vide Sub-Section (3) of Section 11 of the Insurance Ordinance, 2000, which states that: "(3) An insurer registered under the Ordinance shall pay to the commission, on or before the fifteenth day of January in every calendar year, an annual supervision fee of the greatest of:
(a) Rs 100,000; and (c) Such amount as may be prescribed." The amount against Sub-section (c) above was prescribed through the insertion of Rule 7A in the Securities and Exchange Commission (insurance) Rules, 2002 vide S.R.O. Notification 1123(1)/2009 dated December 18, 2009, whereby the Annual Supervision Fee would be:
"Every insurer registered under the Ordinance shall pay to the Commission, on or before the fifteenth day of January in every calendar year, an annual supervision fee: (b) At the expiry of one year, at the rate of Rs 2.00 per 1000 of gross direct premium written in Pakistan during the calendar year, subject to a maximum of rupees fifty million."
Pursuant to the insertion of Rule 7A, the rate prescribed for the payment of annual supervision fee for the year 2015 will be; the greatest of Rs 100,000 or Rs 2.00 per thousand of the gross direct premium written in Pakistan during the year 2013, subject to a maximum of Rs 50 million, SECP said.
Accordingly, the SECP has advised the insurance companies to deposit the annual supervision fee in the commission's bank account and the original challan thereof, along with the figures of direct gross written premiums reconciled from the Audited Annual Accounts for the year ended December 31, 2013, should be furnished to the Insurance Division, Karachi, on or before January 15, 2015, positively.
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