Aimed COVID-19; SECP measures to facilitate insurers, policyholders.

ISLAMABAD -- To facilitate insurance policyholders in current challenging times, the Securities and Exchange Commission (SECP) Monday asked insurance companies to waive non-mandatory requirements for claims processing.

SECP has also advised insurers to use alternative methods for verifying the authenticity of claims.

The outbreak of COVID-19 has posed unprecedented challenges to businesses across the country.

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.

To facilitate policyholders, the SECP has asked companies to consider extension in grace period of payment of renewal premiums under insurance policies. Moreover, insurers have been encouraged to utilize digital or online payment modes for receipt of insurance premium and disbursement of claim payments, utilize electronic mediums such as SMS, emails, mobile applications, online portals etc. for claims handling, delivery of policy documents and issuance of pre-authorizations for treatment in hospitals.

Furthermore, 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 of low claim ratio to motor...