ISLAMABAD, Oct 1: Securities and Exchange Commission of Pakistan (SEC) has warned companies and individuals to stop underwriting insurance risk, particularly, third party motor cover without the authority and certificate of registration for engaging in insurance business.

Conduct of insurance business without such authority, it stated here on Tuesday, was a serious violation of the law and tantamount to indulging in fraudulent business. In this connection, the SEC pointed to section 6 of the Insurance Ordinance, promulgated in August 2000, which spells out the requirement for registration of an insurer and clearly debars a person from conducting insurance business without obtaining a certificate of registration from the SEC.

SEC, the statement further said, “has taken a serious view of this unauthorised business and warns the operators of such companies to immediately stop underwriting insurance business, failing which strict legal/penal action shall be taken against such companies and their directors as well as other principal officers.”

SEC, in consonance with its desire to protect the interests of policy holders as well as the industry, has advised the general public to obtain insurance cover only from companies that have obtained certificate of registration from the SEC.

For the convenience of general public, the list of insurance companies who have been registered by the SEC has been placed at the Commission’s website www.secp.gov.pk.