6.4 C
London
Sunday, January 16, 2022

Insurance Companies in Pakistan – Top 3 Insurance Companies

Insurance Companies in Pakistan

The comptroller of the armed forces has questioned the profits of insurance companies in Pakistan. The prime minister Akbar Kamal Khan Beliani has accused the former insurer of ignoring poor conditions and corruption. In fact, the Capital Holding and Investment Company (CHIC) had not paid the life insurance premiums due to the customers because of dishonoring court order on payment of the premium.

The Pakistan Insurance Companies Act (PICA) was introduced to protect the interests of customers by ensuring respect for court orders by ensuring recovery of premium paid by the beneficiaries.

Complaints

The affected group include six clients who had taken at least one type of life insurance. All the six clients were on premium installment. Each of the clients paid Rs. 7000 on the monthly installment. So, these clients paid Rs.1.8 million total in their premiums. What did CHIC do to resolve the issue?

CHIC neglected its responsibility to pay the life insurance premiums. Some of the key concerns of the affected customers include delay in payment of premium, inauspicious payment of the premium, insufficient repayment of the premium, and disappearance of the premium amount through CDA accounts.

Premium PAN Card

However, in one case, CHIC was asked by the Federal Caudatan to pay the agent’s premiums from his PAN Card. CHIC did not comply with that request. After the Central Board of Revenue approached CHIC with complaint against the insurance company for paying the premium without payment of the first part of the premium amount, the officials issued a “superseding order” against CHIC by demanding Rs. 7.58 million premium.

CHIC ignored the issues in which its agents were in violation of laws to pay and ensure that refunds are paid from the refunds.

In addition, CHIC did not pay the relevant medical insurance payments from the original premiums paid by the beneficiaries of their life insurance policies.

Life Insurance Premium

Moreover, CHIC paid about Rs. 750 million Rs. 7.75 million back to these affected beneficiaries in respect of the premiums paid, but in terms of further damages, they were asked by CCI to pay Rs. 356 million. This amount returned to the beneficiaries was because of non-delivery of life insurance premium. In addition, CHIC deducted Rs. 2.05 million as “carried forward premium from E.B.I. records.”

This was not a premium owing to a payment of annuity account from the clients due to “fidelity certificate” by the client.

Furthermore, if CHIC decides to reconcile with CCI, the company’s management had terminated the accounting policy for cases that need to be merged. Furthermore, because of financial pressure and unpaid claims by the clients, CHIC allowed a client to cancel his policy for the reason that he was reported to be in the process of filing assets return.

Fraudulent Transactions

Though a refund of Rs. 4,000 in the case of fraudulent transactions were received by CHIC from Electronic On-line account, the insurer signed the documents to claim the return under Sec 10(iii) of the PMC Act.

The policy was terminated two months before the time of filing of assets return. However, CHIC never informed the policy holder and purchased the case under the same policy. At the same time, there were rumors that the policy holder’s account would become insolvent because of 25 percent per annum underwriting premium.

Why did Prime Minister Beliani not perform any action against the insurance company?

Insurance Companies Ordinance

The issue started only when the Prime Minister introduced legislation that would bring about amendment and rearrangement of the Insurance Companies Ordinance, 1974 (or PICA) in order to implement the Pakistan Insurance Companies Act, 1976 (or PICA).

We are reminded of the history of Pakistan Insurance Companies Act, 1976 (or PICA). In the year 1986, 13 insurance companies were put into form of a syndicate, an international insurance company. Later, several years ago, the government of Pakistan passed the Insurance Companies Act, 2010 (or PICA).

Under the new act, the insured disputes with his insurer will be settled through arbitration under a magistrate.

performance of insurance companies

Due to the bad performance of insurance companies, former Prime Minister Nawaz Sharif introduced a four-month voluntary action of giving explanations to the insurer. This period was extended in a new law for two years.

Finally, as we know how unreliable these companies are and are thus considered a hidden haven for money laundering and asset making.

List of Insurance Companies in Pakistan

On the list of the most successful companies in Pakistan:

1. NICB : Pakistan’s first health insurance company that administers over 50 million consumers. They are easily recognized as the main insurer of the country

2. ACC: Punjab Insurance Company is the newest-ever company in Pakistan. As a state-of-the-art company they have constructed new buildings for their employees to work in. A new headquarters was constructed for which the company had to hire over 1000 workers.

3. SITE Group: The first company to launch a public policy in Pakistan and the first company to launch a company-wide policy, in which they wanted to put up measures for the homeless population of Pakistan.

Insurance companies in Pakistan have developed a criterion for assuring that clients receive a good service. This is a process that is more transparent, reduces financial risk, enhances the party’s customer-customer relationship and creates public good in the financial sector.

1. Citizens Pakistan

2. Sharks Networks Ltd

3. Sharaq Da’a Insurance

4. Saatchi Kashmir and Kashmir Insurers Ltd

5. Best Health Insurance Agency

Alparslan Episode 5 English Subtitles HD

Alparslan Episode 5 Urdu Subtitles HD

Read Also :-  Health Insurance – All About Health Insurance

Spread the love
Sultan Javedhttps://thupload.com/
I trying to implement my beautiful faith in every aspect of my life. I'm Recently Graduated in Information Technology from GC University Faisalabad. I love to write about Life-Style, News & Trends. My Skills are SEO, Web Developer & Blogger. I hope what you find here is thought-provoking and beneficial. Enjoy! :)
Latest news
Related news

LEAVE A REPLY

Please enter your comment!
Please enter your name here

You cannot copy content of this page