Insurance surveyors: SECP suggests overhauling regulatory framework

The Securities and Exchange Commission of Pakistan has proposed a sweeping revision of the rules governing insurance surveyors, according to Business Recorder. Under the concept paper, insurers would have to appoint licensed surveyors for motor claims above Rs50,000 and non-motor claims above Rs100,000. Surveyors must be engaged within 72 hours of a claim being reported, while fines capped at Rs1 million could apply to violators.

Survey reports would be due 15 days after a motor claim and 30 days after a non-motor one, with extensions allowed only in exceptional cases and capped at six months overall. Surveyors and authorised surveying officers would be bound by a code of conduct covering integrity, impartiality and independence, conflict disclosure and confidentiality. They would also be barred from taking part in claim payments or settlements, and keep their files for a minimum of five years.

Policyholders could hire licensed surveyors at their own cost where the policy allows it, and could object to an appointment on grounds such as conflicts of interest. Engineering and agricultural surveyors would need relevant bachelor's degrees, and surveyors earning over Rs10 million a year would carry Rs3 million professional indemnity cover per event. The SECP has also proposed that insurers pay surveyors' fees promptly, and that non-life insurers adopt board-approved surveyor management policies, aiming to improve transparency and claim quality.