ISLAMABAD: The Securities and Exchange Commission (SECP) has asked insurance companies to waive non-mandatory requirements for claims processing and use alternative methods for verifying their authenticity to facilitate insurance policyholders during the pandemic.

The SECP has been continuously taking measures to extend every possible relief and facilitation to companies and persons connected therewith being investors, borrowers or policyholders amid the Covid-19 crisis.

The SECP has written to insurance companies to consider extension in grace period of payment of renewal premiums under insurance policies.

Moreover, insurers have been encouraged to utilise digital or online payment modes for receipt of insurance premium and disbursement of claim payments. Furthermore, they have been urged to utilise electronic mediums such as SMS, emails, mobile applications, online portals etc. for claims handling, delivery of policy documents and issuance of pre-authorisations for treatment in hospitals.

Taking into account the anticipated low claim ratio in motor insurance business due to lockdown, the SECP has recommended insurance companies to pass on the benefit to policyholders by granting one month free of cost extension in insurance coverage to all motor insurance policyholders.

Published in Dawn, May 12th, 2020