SECP proposes new insurance rules to protect policyholders

Mettis Global reported that the Securities and Exchange Commission of Pakistan has released a draft of its Market Conduct Rules 2026 for insurance companies and opened it to public consultation. The rules would apply only to individual insurance policies and aim to strengthen protection for insurance consumers. Comments and objections are invited within 30 days, after which the SECP Policy Board will weigh it for adoption.

Life insurance claims would need a decision within 20 days once the paperwork is complete, while motor claims would be decided 5 days after the survey report. Other non-life claims would face a 7-day limit after the survey. Once approved, payments must follow within 7 days, and hospitalised health claims need settlement within 20 days. Discharge approvals would be due within 3 hours, and insurer delays could not hold patients back.

Insurers would only be able to seek relevant paperwork and would publish settled, rejected and pending claim data online, including the share pending over a year. New policy applications would need processing within 7 days, life policy documents within 20 days and digital sales within 3 days. Motor policyholders would learn the current market value of their vehicle, and non-life policyholders could cancel without a reason. Violations could cost insurers up to Rs1 million, with a further Rs10,000 per day for continued breaches.