The Securities and Exchange Commission of Pakistan (SECP) has proposed new rules to speed up insurance claim assessments, protect policyholders and penalize insurers and surveyors for delays.
Under the proposed changes, insurers would have to appoint surveyors within 72 hours of receiving a claim notification. They would also need to inform customers about required documents within seven days.
Surveyors would be required to submit reports within 15 days for motor insurance claims and 30 days for other insurance claims.
The proposals are part of the SECP’s concept paper on strengthening the regulatory framework for insurance surveyors. The commission has invited initial feedback from stakeholders before developing detailed amendments to the Insurance Rules, 2017.
The proposed rules would allow extensions only in exceptional cases. The total extension period would be capped at six months, while extensions for individual motor insurance claims could not exceed 30 days.
Surveyors would have to request extensions before the deadline, explain the reasons for delays and provide progress updates to insurers every 30 days until they submit their final reports.
If policyholders fail to provide required information, surveyors could complete their assessments using available documents after sending at least two written reminders, with a minimum gap of five days between them.
The SECP has also proposed allowing policyholders to hire their own licensed surveyors at their expense where their insurance policies permit it. Insurers would have to consider these surveyors’ findings during claim assessment and settlement, subject to prescribed conditions.
Customers would also be able to object to a surveyor’s appointment on valid grounds, including conflicts of interest or previous disputes.
Under the proposed framework, licensed surveyors would be mandatory for motor insurance claims exceeding Rs. 50,000 and non-motor claims exceeding Rs. 100,000.
Surveyors would have to keep records of their work, including photographs, supporting evidence, policy details and assessment reports, for at least five years. They would also be required to follow professional standards covering impartiality, confidentiality and conflicts of interest.
The proposed penalties include fines of up to Rs. 1 million for non-compliance and an additional Rs. 10,000 per day for continuing violations.
Non-life insurers would also need board-approved policies for appointing surveyors, assigning cases and monitoring their performance.
The proposals further include stronger qualification and training requirements, at least 24 hours of annual professional development for specified professionals, and minimum professional indemnity insurance of Rs. 1 million or Rs. 3 million per event, depending on annual revenue.
The SECP says the proposed changes aim to make insurance claim assessments faster and more transparent while improving accountability across the industry.
