The Securities and Exchange Commission of Pakistan (SECP) has proposed revision of the pecuniary limit for Small Dispute Resolution Committees (SDRCs) to arbitrate disputes between SECP and insurance companies pertaining to individual life contracts, domestic insurance policies and private motor insurance policies. In this regard, the SECP has proposed amendment to the Small Dispute Resolution Committees (Constitution and Procedure) Rules, 2015 through an S.R.O. 844(1)/2016 issued here on Tuesday.
According to the SECP''s proposal, the committee shall have the authority to arbitrate a dispute having specified pecuniary limit: In case of an individual life contract, the limit has been proposed to be set at Rs 2.5 million. Presently, the maximum limit for individual life insurance policy was Rs 1 million.
In case of a domestic insurance policy, the committee shall have the authority to arbitrate a dispute having specified pecuniary limit of Rs 5 million. At present, maximum sum insured limit is rupees two million for domestic insurance policy.In case of a private motor insurance policy, limit has been proposed to be enhanced to Rs 2.5 million. Presently, maximum limit is Rs 1 million for a private motor insurance policy.
Following is text of the S.R.O. 844(1)/2016 issued here on Tuesday: The following draft amendments in the Small Dispute Resolution Committees (Constitution and Procedure) Rules, 2015 are proposed to be made by the Securities and Exchange Commission of Pakistan, with the approval of the Securities and Exchange Policy Board, in exercise of the powers conferred by section 117 and sub-section (2) of section 167 of the Insurance Ordinance, 2000 (XXXIX of 2000), read with S.R.O. 708(1)/2009 dated 27th July 2009, which are hereby published for information of all persons likely to be affected thereby and notice is hereby given that objections and suggestions, if any, received within the thirty days of the publication of this notification, will be taken into consideration, namely:-
DRAFT AMENDMENTS In the aforesaid Rules, for rule 6, the following shall be substituted, namely:-
"6. Committee to arbitrate certain disputes.- The Committee shall have the authority to arbitrate a dispute having following pecuniary limit:
In case of an individual life contract, rupees two million five hundred thousand;
In case of a domestic insurance policy, rupees five million; and In case of a private motor insurance policy, rupees two million five hundred thousand."