ISLAMABAD, Nov 15: The Securities and Exchange Commission of Pakistan (SECP) has directed the non-life insurance companies to raise their paid-up capital to a minimum of Rs50 million by Dec 31, 2002 and to Rs80 million by 2004.

At present about 35 non-life insurance companies were maintaining paid-up capital below Rs50 million. Under Insurance Ordinance 2000, promulgated last year, the paid-up capital is required to be raised up to Rs200 million in a phased manner.

The Commission said that it was part of a detailed action plan, in collaboration with Insurance Association of Pakistan (IAP) and Institute of Chartered Accountants of Pakistan (ICAP), to facilitate these 35 companies to comply with statutory provisions.

The Commission said that it would be concentrating on complaints received from the general public against non-payment of claims by the insurance companies.

It said that it has been observed generally through investigations that companies were unwilling or unable to pay the claims even in cases when the claims were assessed and declared payable by an independent insurance surveyors.

“In order to watch and protect the interest of the policy-holders or insured in the country, efforts are being made to enhance the capacity of the local insurance industry to honour claims made on it”, said the SECP.