LAHORE: An emergency meeting of the Professional Association of Insurance Surveyors of Pakistan (PAISP) was held in Lahore to deliberate on the Insurance Bill 2026, which is currently before the National Assembly.
The association’s president, Junaid Zaidi, expressed serious reservations about the proposed legislation, stating that a significant portion of the bill remains incomplete. He said the bill grants the Securities and Exchange Commission of Pakistan (SECP) authority to frame rules that effectively amount to lawmaking, whereas the SECP is a regulatory body whose primary function is to develop and enforce regulations, not to legislate.
He added that while the stated objective of the bill is to digitalise the insurance sector and ensure timely settlement of claims, it does not clearly define the role and responsibilities of insurance surveyors. He further noted that it also lacks adequate provisions addressing cybersecurity risks and safeguards required for a digital insurance framework.
Providing historical context, Zaidi said that when the Insurance Act of 1938 was enforced, numerous issues emerged in the settlement of insurance claims, and many policyholders were unable to receive their rightful payments. To address these challenges, Section 44-A was introduced through an amendment in 1958, formally recognising insurance surveyors as independent and impartial professionals. He said they were granted licences to assess losses and investigate claims, which significantly reduced disputes over settlements.
He further stated that if the Insurance Bill 2026 dilutes or removes the effective role of insurance surveyors and restores loss-assessment authority to insurance companies, the transparency of the claims settlement process would be compromised. As a result, he warned, the country could face a return to the challenges that existed prior to the reforms introduced in 1958.
The association called for the bill to be referred back to the Ministry of Commerce for redrafting. It proposed the formation of a committee comprising representatives of all relevant stakeholders to undertake comprehensive consultations and develop a more balanced legislative framework.
