The Securities and Exchange Commission of Pakistan (SECP) has unveiled draft Market Conduct Rules for Insurers, 2026, proposing mandatory timelines for claim processing, policy issuance and payments to strengthen consumer protection.
Under the proposed rules, life insurers would have to decide claims within 20 working days after receiving all required documents. Motor insurance claims would need to be decided within five working days of the final survey report, while other non-life claims would have a seven-working-day deadline.
Approved claims would have to be paid within seven working days. Health hospitalization claims would need to be settled within 20 working days, while hospital discharge authorization would have to be provided within three hours.
The draft also requires insurers to publicly disclose claim settlement, repudiation, outstanding and pendency ratios for at least the previous three years.
New policy proposals would have to be decided within seven working days, while digitally or telemarketing-sold policies would have to be issued within three working days.
Non-compliance could attract a fine of up to Rs1 million and an additional Rs10,000 per day for continuing violations. The SECP has invited public and stakeholder feedback within 30 days before the proposed rules proceed through the approval process.
