ISLAMABAD, Jan 17: The Securities and Exchange Commission of Pakistan has not granted new certificates of registration to eight insurance companies that could not meet the requirements laid down under the new insurance law.

These companies are no longer authorized to transact insurance business, a press release of the SECP said here on Friday.

With the promulgation of Insurance Ordinance, 2000 under the Capital Market/ Insurance Sector’s Reforms, all insurance companies registered under the repealed Insurance Act, 1938, were required to seek fresh registration, after meeting certain requirements as laid down under the new insurance law.

Out of 56 insurance companies operating under the old insurance law, 48 companies were able to fulfil the new requirements and, therefore, granted new certificates of registration.

The remaining eight companies which could not meet the standards fixed under the new Law were not granted registration certificate and, therefore, are not authorized to transact insurance business in the country.

These companies are: Amicus Insurance Company Limited, Beema Pakistan Limited (formerly Heritage Insurance Company Limited), Eastern General Insurance Company Limited, Pakistan Northern Insurance Company Limited, Pearl Insurance Company Limited, Shalimar Insurance Company Limited, Standard Insurance Company Limited and Sterling Insurance Company Limited.

Recently during this month, out of 48, which were granted registration certificate, 12 companies had been asked to cease underwriting new insurance business, as these companies could not increase their share capital to Rs50 million by December 31, 2002, as required under the law.

However, three of these 12 companies, namely, Jupiter Insurance Company Limited, Credit Insurance Company Limited and Union Insurance Company Limited have now been allowed to underwrite insurance business as they have succeeded in meeting the above requirement of paid-up capital.

In their case, the directive to cease new contract of insurance has accordingly been withdrawn by the SECP.—APP