The Securities and Exchange Commission of Pakistan (SECP) has constituted three small dispute resolution committees (SDRCs) in Islamabad, Lahore and Karachi to resolve disputes between insurers and policyholders. Each committee consists of three members, ie a chartered accountant or a management accountant, a lawyer and a representative of the insurance industry. During last month, the SDRCs resolved seven complaints.
The complaints were examined by the SDRC members and as per procedure hearings were conducted. Both parties, ie policyholder and insurance companies were given opportunity to give their point of view. The idea behind the constitution of these committees is to provide expeditious resolution to the insurance policyholders or their legal heirs in case any dispute arises between them and insurance companies. In addition, two other grievance resolution forums, ie the federal insurance ombudsman and the insurance tribunals are also available to policyholders. In four cases, the insurance companies refunded the amount claimed and in three cases orders were passed under Rule 14 of the 2015 Small Disputes Resolution Committee (Constitution and Procedure) Rules, thereby directing Insurance Companies to pay the claim and refund the amount of premium.--PR