Competition Commission of Pakistan (CCP) has issued show cause notices to Takaful Pakistan Limited (TPL) and Travel Agents Association of Pakistan (TAAP). According to a statement, CCP issued show cause notices against their default and travel insurance scheme in Pakistan which, prima facie, restricts the competition in the provision of travel insurance market and is also deceptive in nature.
Civil Aviation Authority of Pakistan which was originally seized of the matter, made a reference to the CCP to ensure that the said scheme does not violate competition law, it said.
The CCP conducted a comprehensive inquiry in the matter, which revealed that the travel insurance offered by TAAP under the said scheme, through its member travel agents is not only restricting competition but is also a deceptive as to its price to consumers. Travel agents, part of the scheme, charge Rs 600 to consumers purchasing tickets for international destinations, as charges for travel insurance.-PR