KARACHI (January 18 2003) : The Securities Exchange Commission of Pakistan has not granted new certificates of registration to eight insurance companies, which failed to meet the set guidelines under the insurance law.
According to a release of the SECP, these companies are no longer authorised to transact insurance business in the country.
With the promulgation of the Insurance Ordinance, 2000, under the Capital Market/Insurance Sector's Reforms, all insurance companies registered under the repealed Insurance Act, 1938, are required to seek fresh registration, after meeting certain requirements as laid down under the new insurance law.
The eight companies, which did not meet the standards fixed under the new law were not granted registration certificate, and therefore, are not authorised to transact insurance business in the country.
These companies are Amicus Insurance Co, Beema Pakistan Ltd, (formerly Heritage Insurance Co), Eastern General Insurance Co, Pakistan Northern Insurance Co, Pearl Insurance Co, Shalimar Insurance Co, Standard Insurance Co, and Sterling Insurance Co.
Recently, 12 companies had been asked to cease underwriting new insurance business, as these companies could not increase their share capital to Rs 50 million by December 31, 2002, as required under the law.
However, three of these 12 companies, namely Jupiter Insurance Co, Credit Insurance Co and Union Insurance Co, have now been allowed to underwrite insurance business as they have succeeded in meeting the above requirement of paid-up capital.
In their case, the directive to cease new contract of insurance has accordingly been withdrawn by the SECP.