SECP Issues Draft Market Conduct Rules, Proposes Timelines For Insurance Claims
ISLAMABAD, (APP – UrduPoint / Pakistan Point News – 20th Aug, 2026) The Securities and Exchange Commission of Pakistan (SECP) has issued the draft Market Conduct Rules for Insurers, 2026 for public consultation, proposing binding timelines for insurance claims, policy issuance and payments, along with greater disclosure of insurers’ claims performance.
The draft rules, applicable to personal lines insurance contracts for individual consumers, aim to strengthen policyholder protection and establish minimum standards for insurers in dealing with individual customers throughout the customer lifecycle.
Key proposals include:
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Faster claim decisions: Life insurers must decide a claim within 20 working days, non-life insurers (motor) within five working days, and other non-motor claims within seven working days.
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Timely claim payments: Once approved, claims must be paid within seven working days.
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Improved transparency: Insurers to disclose claim settlement, repudiation, outstanding, and pendency ratios on their websites and in annual reports, for at least the preceding three years.
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Streamlined policy processes: Insurers must communicate policy proposal decisions within seven working days, with life insurance policy documents issued within 20 working days, and digital/telemarketing policies issued within three working days.
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Enhanced protections for motor insurance customers: Insurers must disclose vehicle market value and explain over-insurance/under-insurance impact. Motor repairs must generally be completed within 15 working days.
Non-compliance with these rules may attract a fine of up to Rs. 1 million, with an additional fine of up to Rs10,000 per day for continuing defaults.
SECP has invited comments and suggestions from the public and stakeholders within 30 days of the notification.
