The Securities and Exchange Commission (SECP) has advised insurance companies to grant one month free of cost extension in insurance coverage to all motor insurance policyholders. The decision has been taking while keeping in view the anticipated low claim ratio in motor insurance business due to lock-down.
The decision to provide one month free of cost extension in coverage will ease up the economic pressure on the motor insurance policyholders in these difficult times.
Further, the SECP has advised insurance companies to waive non-mandatory conditions for claims processing and use alternative methods for verifying the legitimacy of claims. This will assist the policyholder to submit and get the claim smoothly.
Moreover, the SECP has asked the insurance companies to consider extension in grace period of payment of renewal premiums under insurance policies.
Moreover, insurance companies have also been encouraged to utilize digital or online payment modes for receipt of insurance premium and disbursement of claim payments.
Additionally, SECP has urged insurance companies to use electronic means 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.
Measures for Insurance Companies
Similarly, SECP has also relaxed the license renewal requirements for insurance brokers, insurance surveyors, and authorized surveying officers by introducing a relaxation period of two months starting from March 15, 2020.
With this decision, the insurance brokers / insurance surveyors / authorized surveying officers whose license have expired or might expire during this period would be able to continue to carry on their business as usual without renewal.
