SECP unveils timelines for insurance claims

The SECP has put forward draft rules that set deadlines for insurers to settle claims, with the aim of better protecting policyholders. According to The Express Tribune, the proposed Insurance Market Conduct Rules 2026 would cover individual insurance policies only, and the draft has been released for public consultation.

Under the timelines, life insurance claims would have to be decided within 20 days once the required paperwork is in hand. Motor claims would face a five-day limit after the survey report is received, while other non-life claims would need a seven-day decision period counted from the survey.

The draft also spells out insurers' responsibilities from the point a policy is issued through to payment of a claim, and companies would have to process and pay within the stated limits. The report presents the move as a significant effort to protect policyholders and improve transparency.