Could 21, 2025 (MLN): The Securities and Trade Fee of Pakistan (SECP) has formally ceased the assure enterprise of The United Insurance coverage Firm of Pakistan Restricted, efficient instantly, by means of a Route issued on Could 20, 2025, beneath part 60 of the Insurance coverage Ordinance, 2000.

Previous to this motion, SECP issued a show-cause discover to United Insurance coverage, which obtained a keep order from the Lahore Excessive Court docket on February 21, 2024.

Nevertheless, the court docket dismissed United Insurance coverage’s petition on April 10, 2025, citing it as with out advantage, in accordance with the press launch issued right this moment.

The choice follows United Insurance coverage’s deliberate refusal to encash known as ensures on numerous pretexts, resulting in an accumulation of ensures totaling Rs2.2 billion by December 2023.

Moreover, complaints amounting to Rs822 million relating to non-encashment have been obtained throughout 2024 and 2025.

Regardless of a number of listening to alternatives, the corporate failed to satisfy the regulatory necessities to proceed its ensures enterprise.

SECP additionally discovered that United Insurance coverage made materially false statements throughout proceedings concerning the settlement of a assure price roughly Rs1bn.

This concern might be addressed individually beneath the Ordinance. To safeguard the pursuits of policyholders and assure holders, and to take care of public belief within the insurance coverage sector, SECP has prohibited United Insurance coverage from issuing new ensures or rolling over present ones.

The corporate has been directed to meet obligations associated to present ensures as they mature.

United Insurance coverage retains the precise to hunt cancellation or modification of this Route, supplied it complies with regulatory necessities, together with securing correct collateral and settling all unpaid ensures.

As a part of its ongoing efforts to boost compliance and shopper confidence, SECP has addressed over 3,000 complaints since July 1, 2024, leading to recoveries amounting to Rs1.3bn for policyholders.

This proactive stance by SECP is anticipated to strengthen compliance within the insurance coverage sector and reinforce public belief.

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Posted on: 2025-05-21T16:45:00+05:00

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