Draft of market conduct rules for insurers issued

Business Recorder reported that the Securities and Exchange Commission of Pakistan has released a draft of Market Conduct Rules for Insurers, 2026, inviting public input. The proposal sets binding deadlines for insurance claims, policy issuance and payments, and would require insurers to publish more detail on how they handle claims. The draft covers individual consumers' personal lines policies and sets minimum standards across the customer lifecycle.

Under the draft, life insurers would have 20 working days to decide a claim after receiving all required papers, while motor claims in non-life cover would need a decision within five working days of the final survey report. Other non-life claims have a seven working day limit, and payment is due within seven working days of the decision. Health insurers would face a 20 working day settlement window for hospitalization claims and must issue discharge authorization within three hours.

Insurers must also publish ratios covering claims settled, repudiated, outstanding and pending, through their websites and annual reports, with data for at least three earlier years. Insurers would disclose estimated vehicle market values to motor customers and explain over and under insurance, while approved repairs are generally meant to finish within 15 working days. Penalties for breaches could reach Rs1 million, with an extra Rs10,000 per day for continuing defaults. Public and stakeholder comments are invited for 30 days after notification, and feedback will be weighed before approval.