November 15, 2002	Friday	Ramazan 9, 1423

KARACHI, Nov 14: The State Bank has allowed remittances of re-insurance premia on policies issued in respect of accidental death.

In a circular issued to all banks the SBP says that the step has been taken “to further liberalize the foreign exchange regime.”

For this purpose the circular has amended the relevant part of the Foreign Exchange Manual. The amended part now says that remittance of re-insurance premia arising from the life insurance policies is not permissible except in the following cases: (In other words remittance of re-insurance premia is allowed in the following cases):

(a) re-insurance premia on policies reinsured before 29th December 1970.

(b) re-insurance premia on policies issued and reinsured on or after 25th May 1973 for sums over Rs350,000 in respect of death risk only; and

(c) re-insurance premia on policies issued in respect of death risks for any amount.

The circular says that remittances in the above-said cases would be allowed by the State Bank in accordance with the procedure laid down for this purpose.

Bankers say this liberalization of outward remittances will help the insurance companies in a big way. The insurance industry has been hit hard worldwide in the aftermath of 9/11 terrorist attack on the US. Pakistan is no exception.