Insurance Rules, 2017 (updated till December 31, 2023)

GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Islamabad, the 9 th February, 2017 NOTIFICATION S.R.O. 89(I)/2017.- In exercise of powers conferred by section 167 of Insurance Ordinance, 2000 (XXXIX of 2000) read with S.R.O. 708(I)/2009 dated 27 th July 2009, the Securities and Exchange Commission of Pakistan, with the approval of the Policy Board, is pleased to make the following rules, the same having been previously published in the official Gazette through S.R.O. 1057(I)/2015 dated October 30 th, 2015.

1. Short title and commencement.- (1) These Rules shall be called the Insurance Rules, 2017.
   (2) These rules shall come into force at once.
2. Definitions.- (1) In these rules, unless there is anything repugnant in the subject or context.-
   (a) “Agent” means an insurance agent appointed by an insurer in accordance with the provisions of the Ordinance and these rules; (b) “Authorized Surveying Officer” means an authorized surveying officer registered in accordance with the provisions of the Ordinance and these rules; (c) “Class” means the class of insurance surveyors as provided in sub-rule (1) of rule 41; [(ca) “Digital-only insurer” means insurer as defined in the Ordinance having registration to carry on insurance business and primarily relies on technology for its insurance operations and makes distribution only through digital modes including outbound calls; (cb) “Microinsurance” means as defined in the SEC (Microinsurance) Rules, 2014; (cc) “Microinsurer” means insurer as defined in the Ordinance which is allowed to transact the microinsurance only; (cd) “protection products” means products as defined in the Corporate Insurance Agents Regulations, 2020; (ce) “Saving products” means products as defined in the Corporate Insurance Agents Regulations, 2020;] (d) “Related Party” of a person (“the first person”) includes:
   (i) member of the family of the first person;
   (ii) lender of any person in which the first person has any interest or shareholder, other than as a passive investor; (iii) any partner or employer or employee of the first person;

Inserted by S.R.O. 1513(I)/2022 dated August 16, 2022

(iv) if the person is owner or a partner and directly or indirectly holds or controls shares carrying not less than ten percent of voting power in such company; and (v) any person to whom the first person is indebted; (e) “Ordinance” means the Insurance Ordinance, 2000 (XXXIX of 2000). (2) The words and expression used but not defined shall have the meaning assigned to them in the Ordinance.
3. Qualifications of actuaries.- (1) Subject to sub-rule (2), any person signing as actuary under
the Ordinance shall be a fellow of –
(a) the Pakistan Society of Actuaries; or
(b) the Institute of Actuaries in England; or
(c) the Society of Actuaries in the United States of America; or (d) such other body as may be recognized by the Commission for the purposes of this rule, after obtaining views of the Pakistan Society of Actuaries. (2) The person referred to in sub-rule (1) shall have at least thirty-six months’ post fellowship experience out of which at least twelve months shall have been in Pakistan within the thirty-six months preceding the date of signing.
4. Additional sub-classes of insurance business.- For the purposes of sub-section (5) of section
4 of the Ordinance, insurance business of the nature of a domestic insurance policy or of a private motor property damage policy as defined in section 2 of the Ordinance shall not be considered related and subsidiary to life insurance business.
5. Restricted classes of insurance business.- For the purposes of subsection (6) of section 4 of
the Ordinance, the Commission while granting licence as a life or non-life insurer, as the case may be, may declare the following as restricted classes of insurance business for that applicant, namely:- (a) For life insurance:
(i) pension fund business; and
(ii) accident and health business.
(b) For non-life insurance:
(i) motor third-party compulsory business;
(ii) workers‘ compensation business;
(iii) accident and health business;
(iv) proportional treaty business; and
(v) non -proportional treaty business.

6. Application for registration as an insurer.- (1) For the purposes of subsection (6) of section 6
   of the Ordinance, an application for registration as an insurer shall contain the following information, namely:- (a) The name of the insurer; (b) the address of the principal office and in the case of an insurer incorporated outside Pakistan, the address of the principal office outside Pakistan; (c) the name, address and occupation of the directors of the insurer, and particulars of other directorships held by them; (d) the nature of, and all considerations and other benefits passing under, any agreement between the applicant and any director; (e) the names and addresses of, and particulars of any business carried on by, each person holding an interest of ten per cent or more in the issued share capital of the insurer; (f) a statement of the class or classes of insurance business to be carried on by the insurer; (g) where registration is sought for life insurance, a statement of the statutory funds to be established by the insurer; (h) the name and address of the auditor of the insurer, and a statement by the auditor that he consents to act as auditor of the insurer; (i) where registration is sought for life insurance, the name and address of the appointed actuary of the insurer, and a statement by the appointed actuary that he consents to act as appointed actuary of the insurer; (j) the name and address of the bank or banks which the insurer uses or proposes to use as its principal banker or bankers; (k) the name and address of any investment custodian used or proposed to be used by the insurer; (l) a statement of the authorized share capital and the paid-up share capital of the insurer, certified by the auditor of the insurer; (m) a statement, dated not more than seven days previous to the date of the application, from the State Bank of Pakistan showing the amount deposited pursuant to section 29 of the Ordinance; (n) a statement of the existing, if any, and proposed reinsurance arrangements of the insurer; (o) particulars of any agreement other than a reinsurance agreement which the applicant has with any person or body corporate carrying on insurance business; (p) particulars of the measures proposed by the applicant to ensure compliance with the requirements laid down in section 11 of the Ordinance including particulars of the senior management structure of the applicant, and the qualifications and experience of senior managers and directors; and

(q) particulars of the investment policy of the insurer.
(2) For the purposes of section 8 of the Ordinance, an application shall be a document, which may be inspected or copied, to the extent only of the information described in clauses (a) to (m), both inclusive, of sub-rule (1). [(3) The applicant desirous to obtain registration as digital-only insurer shall provide the following information in addition to the information mentioned in sub-rule (1), namely:- (a) description of business model of digital-only insurer, its vision, mission and strategic plan; (b) market analysis along with analysis of business and economic conditions and inherent opportunities; (c) description of target market or customer segment, along with relevant geographic or demographic factors and strategic plan to access that segment; (d) need analysis of targeted customer segment, products and services proposed to be offered and illustration of how these will address the customer needs; (e) distribution strategy, intended partnerships and alliances to be built, and product-wise projected business volume and value from each distribution channel/ mode; (f) product-wise expected claim ratios along with comparison of claim ratios of similar products in Pakistan and in regional and international markets; (g) branding, marketing and go to market strategy; (h) details of payment platform(s) with which the applicant intends to integrate/ partner for premium collection and claim disbursements while considering the accessibility and outreach factor; (i) demonstration of adequacy of human resources capacity with core competencies particularly in the area of technology such as data sciences, artificial intelligence/ machine learning, among others; (j) risk assessment, with special focus on operational risk and mitigating measures to be taken by the applicant to materialize its strategic plan and achieve the business targets as per submitted financial projections; (k) details of technology architecture to be deployed for conduct of end-to-end digital only operations in the areas of customer acquisition, underwriting, administration, claims processing and payment, etc. along with implementation plan. Also include the details of vendors/ entities from whom technology systems will be procured or outsourced, technology implementation partners, use of cloud service, where cloud will be hosted, security/ encryption mechanism used by cloud service provider (CSP) and/ or any service level agreement between company and SLA; (l) results of Vulnerability Assessment and Penetration Testing performed by the Company, if any, and remedial actions taken by the company; (m) results of third-party independent audit conducted by the applicant on Information Technology and Information System operations, if any;

(n) CV of sponsors/ shareholders and details of sources of capital; (o) any other information/document as required by the Commission. (4) The applicant desirous to obtain registration as microinsurer will provide the following information, in addition to the information mentioned in sub-rule (1), namely:- (a) description of business model of microinsurer, its vision, mission, and strategic plan with special focus on serving the underprivileged societal segment; (b) market analysis along with analysis of business and economic conditions and inherent opportunities; (c) description of geographic and demographic segment in which it intends to operate and strategic plan to access that segment; (d) need analysis of targeted customer segment, target products and services and illustration of how these will address the customer needs; (e) distribution strategy, intended partnerships and alliances to be built, and product-wise projected business volume and value from each distribution channel/ mode; (f) product-wise expected claim ratios along with comparison of claim ratios of similar products in Pakistan and in regional and international markets; (g) branding, marketing and go to market strategy; (h) risks and mitigating measures to be taken by the applicant to materialize its strategic plan and achieve the business targets as per submitted financial projections; (i) CV of sponsors/ shareholders and details of sources of capital; (j) any other information/ document as required by the Commission.]
7. Documents to be submitted along with application for registration.- (1) For the purposes of
sub-section (6) of section 6 of the Ordinance, the following documents shall be submitted along with any application for registration, namely:- (a) a copy of the statute, charter, deed of settlement, memorandum of association or other document by which the applicant is constituted; (b) a copy of the articles of association or rules in respect of the applicant; (c) if applicable, a photocopy of the certificate of incorporation and the certificate of commencement of business of the applicant; (d) copies of all accounts, statements and reports laid before the shareholders of the applicant at the last five annual general meetings of the shareholders or, if less than five annual general meetings of the shareholders of the applicant have been held, copies of the accounts,

Inserted by S.R.O. 1513(I)/2022 dated August 16, 2022

statements and reports laid before the annual general meetings of shareholders which have been held; (e) in respect of life insurance and in respect of such classes of non-life insurance as are prescribed pursuant to sub-section (6) of section 4 of the Ordinance, a certified copy of the published prospectus, if any, and of the standard policy forms of the insurer and statements of the assured rates, advantages, terms and conditions to be offered in connection with insurance policies together with a certificate in connection with life insurance business by the appointed actuary that such rates, advantages, terms and conditions are workable and sound; and (f) a business plan showing projected business to be written and cash flows for a period of not less than ten years from the date of the application in the case of a life insurer and not less than three years from the date of the application in the case of a non-life insurer, showing the forecast financial position of the insurer as at the 31 st December, in each calendar year, and the forecast results of the insurer for each year or part of a year ending on the 31 st December. (2) Any document required to be submitted which is not in either English or Urdu language shall be accompanied by a certified translation of that document into English or Urdu language. (3) For the purposes of section 8 of the Ordinance, the documents specified in clauses (a), (b), (c), (d) and (e) of sub-rule (1) shall be the documents which may be inspected and copied.
8. [Annual supervision fee to be paid by an insurer in terms of clause (c) of subsection (3) of
section 11 of the Ordinance. - (1) Every insurer registered under the Ordinance shall pay to the
Commission, on or before the fifteenth day of January in every calendar year, an annual supervision fee at the rate of Rs. 1.60 per thousand of gross direct premium written in Pakistan during the calendar year preceding to the last year, subject to a maximum of rupees one hundred million. (2) Every insurer registered under the Ordinance and undertaking reinsurance business only shall pay to the Commission, on or before the fifteenth day of January in every calendar year, an annual supervision fee at the rate of Rs. 0.8 per thousand of gross reinsurance premium written in Pakistan during the calendar year preceding to the last year.]
9. Transfer of policies.- For the purposes of sub-section (5) of section 16 of the Ordinance, the
amount of assets to be transferred shall be determined in such a manner as is fair and equitable between the policy holders of the statutory funds concerned as advised by the appointed actuary.
10. Expense adjustment.- For the purposes of sub-section (9) of section 23 of the Ordinance, the
prescribed proportion shall be one hundred percent.
11. Minimum paid-up capital requirement for insurers.- (1) For the purposes of sub-section (2) of
section 28, the amount given in the table below shall be the minimum required amount of paid-up
capital for an insurer registered under the Ordinance to carry on insurance business:-

3 Rule 8 substituted by S.R.O. 1871(I)/2023 dated December 26, 2023. Rule 8 before substitution stated:
“8. Annual supervision fee to be paid by an insurer in terms of clause (c) of sub-section (3) of section 11 of the Ordinance.- Every insurer registered under the Ordinance shall pay to the Commission, on or before the fifteenth day of January in every calendar year, an annual supervision fee at the rate of [Rs.
1.60 per thousand of gross direct premium written]
in Pakistan during the calendar year preceding to the last year, subject to a maximum of rupees fifty million.”

[Minimum Paid up Capital Requirement
Amount in PKR (million)
Life insurers 700
Non-life insurers 500
Life microinsurers 150
Non-life microinsurers 80
Life digital-only insurers 250
Non-life digital-only insurers 100 ]
(2) An applicant who, after the commencement of this rule, desires to register itself under the Ordinance shall be required to comply with the above mentioned minimum paid up capital requirement. (3) For the purposes of sub-rule (1), the amount of minimum paid up capital will be net off any discount offered on issue of shares.
12. Admissibility of assets.- For the purposes of sub-section (2) of section 32 of the Ordinance,
the percentages[/ limit of admissibility] specified in column (3) of the table below shall apply for the clauses of the said sub-section specified in column (1) of that table in respect of the assets described in column (2) thereof.

Substituted for the following table by S.R.O. 1513(I)/2022 dated August 16, 2022:
Type of Insurer
Minimum Paid-Up Capital Requirement
Amount given in million rupees
Year
2015 2016 2017 and onwards
31 st December 30 th June 31 st December 30 th June 31 st December (1) (2) (3) (4) (5) (6) Life Insurers 500 550 600 650 700 Non-Life Insurers 300 350 400 450 500 Inserted by S.R.O. 1012(I)/2022 dated July 5, 2022 Inserted by S.R.O. 1012(I)/2022 dated July 5, 2022 Clause Description of Assets Percentage [/ limit of admissibility] 6 (1) (2) (3) (b) In a statutory fund of a life insurer, any assets For assets other than bank deposits – five per cent For total bank deposits – one hundred per cent; and For deposits in a single bank – greater of Rs. 25 million or fifteen per cent. (f) Loans which are secured against immovable property Five percent for both life and non-life insurer. (n) Any one unit of immovable property In the case of both a non-life insurer and a life insurer, – fifty percent till 31 December 2011;

then thirty five percent till 31
December 2013; then twenty percent till 31
December 2014 and thereafter.
(o) Total immovable property In the case of both a non-life insurer and a life insurer, – sixty percent till 31 December 2011; then forty five percent till 31 December 2013; then thirty percent till 31 December 2014 and thereafter. (p) Shares in any one company or in group of related companies five percent in case of life insurer. In the case of a non-life insurer –

• till 30 December 2012 twenty-five per
  cent; and
• thereafter as per the following table
  On and after 31 December 2012 twenty percent
  On and after 31 December 2013 fifteen percent
  On and after 31 December 2014 ten percent
  On or after 31 December 2015 five percent
  (q) Shares of listed companies in the aggregate In case of both life and non-life insurers.– Seventy percent till 31 December 2011; Sixty percent till 31 December 2012; Fifty percent till 31 December 2013 and thereafter (r) Shares of companies (not being listed companies) in the aggregate Five per cent in case of non-life insurer and two and half per cent in case of life insurer till 31 December 2012 and thereafter. (s) Immovable property and shares in the aggregate In the case of both life and non-life insurers.- Eighty per cent till 31 December 2011; Seventy per cent till 31 December 2012;

7 Entries appearing in clause (v) substituted by S.R.O. 1011(I)/2022 dated July 5, 2022. Entries appearing in clause (v) before substitution stated:
Units in any one open ended mutual fund
To the extent they exceed ten percent of the non￾life insurer’s total investment or in case of a life insurer ten percent of the total investment of the relevant statutory fund or shareholders’ fund. Sixty per cent till 31 December 2013 and thereafter. (t) Loans to any person or group of related persons For both life and non-life insurers:

• To any one person – one per cent; and
• To a group of related persons – two per
  cent till 31 December 2012 and thereafter.
  (v) Following assets prescribed by the Commission shall be effective from 31 December 2012:
  Term finance certificates / sukuk bonds issued by one issuer, not being a state owned enterprise To the extent they exceed five percent of the non-life insurer’s total investment or in case of a life insurer five percent of the total investment of the relevant statutory fund or shareholders’ fund. Term finance certificates / sukuk bonds in aggregate To the extent they exceed thirty percent of the non-life insurer’s total investment or in case of a life insurer, thirty percent of the total investment of the relevant statutory fund or shareholders’ fund. [Units in any one open ended mutual fund including exchange traded funds To the extent they exceed ten percent of the non-life insurer’s total investment or in case of a life insurer ten percent of the total investment of the relevant statutory fund or shareholders’ fund. Units in all open ended mutual funds including exchange traded funds managed by the same asset management company In the case of units of open ended mutual funds including exchange traded funds of the same asset management company, to the extent they exceed fifteen percent of the non-life insurer’s total investment or in case of a life insurer fifteen percent of the total investment of the relevant statutory fund or shareholders’ fund. In the case of units of exchange traded funds of the same asset management company, to the extent they exceed an additional five percent of the non-life insurer’s total investment or in case of a life insurer an additional five percent of the total investment of the relevant statutory fund or shareholders’ fund.]

13. Valuation.- (1) For the purposes of sub-section (3) of section 34 of the Ordinance, where an
    amount referred to in sub-section (1) of that section cannot be reliably determined by reason of the absence of relevant information on which to base a determination, an insurer may perform a valuation based on the present value of the expected future cash flows pertaining to an asset or a liability, as the case may be, and in determining the present value a discount rate appropriate to the timing of the future cash flows shall be used.

Units in all open ended mutual funds managed by the same asset management company To the extent they exceed fifteen percent of the non-life insurer’s total investment or in case of a life insurer fifteen percent of the total investment of the relevant statutory fund or shareholders’ fund. Inserted by S.R.O. 1012(I)/2022 dated July 5, 2022 Investment in any single real estate investment trust To the extent they exceed five percent of the non-life insurer’s total investment or in case of a life insurer five percent of the total investment of the relevant statutory fund or shareholders’ fund. Investment in all real estate investment trusts in aggregate To the extent they exceed ten percent of the non-life insurer’s total investment or in case of a life insurer, ten percent of the total investment of the relevant statutory fund or shareholders’ fund. All investment in shares (listed and unlisted), modaraba certificates, property, mutual funds and real estate investment trusts in aggregate but excluding mutual funds which have no direct or indirect investment in equities or property To the extent they exceed sixty percent of the non-life insurer’s total investment or in case of a life insurer, sixty percent of the total investment of the relevant statutory fund or shareholders’ fund. Listed modaraba certificates issued by any one company To the extent they exceed five percent of the non-life insurer’s total investment or in case of a life insurer five percent of the total investment of the relevant statutory fund or shareholders’ fund. Loans to any person or group of related persons in aggregate To the extent they exceed five percent of the non-life insurer’s total investment or in case of a life insurer five percent of the total investment of the relevant statutory fund or shareholders’ fund. [Right of Use Assets recorded as per International Financial Reporting Standard 16 (Leases) From the date of coming into effect of this amendment, in the case of both life insurer and non-life insurer, right of use asset to the extent of the corresponding right-of-use liability but excluding right of use assets created against vehicles, office equipment and intangible assets.]

(2) For the purpose of sub-section (3) of Section 34 of the Ordinance the amounts determined under clauses (c) and (d) of sub-section (2) of section 34 of the Ordinance shall for Accident and Health Business written by a non-life insurer be based on the advice of an Actuary as defined in Rule 3.
14. Net admissible assets of life insurers.- (1) For the purposes of sub-section (2) of section 35 of
the Ordinance, the required minimum amount to be maintained in the Shareholders’ Fund shall be the sum of the following:
[(a) A fixed amount which shall be as follows:
(i) for life insurer, rupees one hundred and sixty-five million only; and (ii) for life microinsurer and life digital-only insurer, rupees seventy-five million only;] (b) If the company has been given written permission by the Commission under Rule 14(2) below, a solvency margin calculated in accordance with the principles set out in Annexure III. (2) The Commission may grant written permission to a life insurer to maintain the solvency margin calculated in accordance with the principles set out in Annexure III in its shareholders’ fund and statutory funds in aggregate (this being in addition to the fixed amount prescribed in Rule 14(1)(a)) instead of in each statutory fund on the following conditions:
(a) The life insurer makes an application in writing, not less than three months before the date on which such permission is to come into effect, seeking permission to maintain the solvency margin calculated in accordance with the principles set out in Annexure III in its shareholders’ fund and statutory funds in aggregate instead of in each statutory fund, such margin being in addition to the fixed amount specified in Rule 14(1)(a); and (b) The application in Rule 14(2)(a) is supported by a non-revocable resolution of the Board of Directors of the life insurer to maintain the solvency margin calculated in accordance with the principles set out in Annexure III in its shareholders’ fund and statutory funds in aggregate for a period of not less than ten years from the date of the application, and, during this period, not to declare any dividend without the express written consent of the Appointed Actuary of the life insurer. (3) For the purpose of sub-section (3) of section 35 of the Ordinance, the surplus of admissible assets in Pakistan over liabilities in Pakistan, other than policyholder liabilities, which a life insurer shall maintain at all times in each statutory fund maintained by it for the conduct of business other than investment-linked business shall be the amount of policyholder liabilities plus, unless written permission has been granted to the life insurer under Rule 14(2) to maintain the solvency margin in its

Substituted by S.R.O. 1513(I)/2022 dated August 16, 2022. Clause (a) of rule 14(1) before substitution stated:
(a) A fixed amount which shall be as follows:

• till 30 December 2012 – seventy five million rupees; and
• thereafter as per the following table;
  On or After Rupees
  ’31 December 2012 One hundred and five million ‘31 December 2013 One hundred and thirty five million ’31 December 2014 One hundred and sixty five million

shareholders’ fund and statutory funds in aggregate, a solvency margin calculated in accordance with the principles set out in Annexure III. (4) For the purpose of sub-section (4) of section 35 of the Ordinance, the surplus of admissible assets in Pakistan over liabilities in Pakistan, other than policyholder liabilities, which a life insurer shall maintain at all times in each statutory fund maintained by it for the conduct of investment-linked business shall be the amount of policyholder liabilities plus, unless written permission has been granted to the life insurer under Rule 14(2) to maintain the solvency margin in its shareholders’ fund and statutory funds in aggregate, a solvency margin calculated in accordance with the principles set out in Annexure III. (5) For the purpose of sub-Section (5) of Section 35 of the Ordinance, the surplus of admissible assets denominated in each currency over liabilities including policyholder’s liabilities denominated in such currency shall be a solvency margin calculated in accordance with the principles set out in Annexure III with respect to policies denominated in such currency. (6) Where sub-section (6) of section 50 of the Ordinance applies in respect of a statutory fund, policyholder liabilities for the purposes of the said sub-sections shall not be less than the amount determined by the appointed actuary under that sub-section.
15. Solvency of non-life insurer.- (1) For the purposes of clause (a) of subsection (3) of section 36
of the Ordinance, the following shall be the prescribed amount, namely:- [(a) for non-life insurer, rupees one hundred and fifty million only; (b) for non-life microinsurer, rupees fifty million only; and [(c) for non-life digital-only insurer:
(i) Rupees fifty million till December 31, 2024; and (ii) Rupees seventy-five million thereafter.] 10 ] (2) For the purposes of clause (b) of sub-section (3) of section 36 of the Ordinance, the prescribed percentage shall be twenty per cent. (3) For the purposes of clause (c) of sub-section (3) of section 36 of the Ordinance, the prescribed percentage shall be twenty per cent.

Substituted by S.R.O. 1513(I)/2022 dated August 16, 2022. Clause (a) and (b) of rule 15(1) before substitution stated:
(a) till 31 December 2011, fifty million rupees; and (b) thereafter as per the following table On or After Rupees 31 December 2012 One hundred million 31 December 2013 One hundred and twenty five million 31 December 2014 One hundred and fifty million 11 Substituted by S.R.O. 435(I)/2023 dated March 28, 2023. Clause (c) before substitution stated:
(c) for non-life digital-only insurer, rupees seventy-five million only.

16. [Assets to be invested in securities.- (1) Thirty per cent of the assets of the shareholders‘ fund
    of a life insurer, or of a statutory fund of a life insurer, other than a statutory fund which contains only investment linked policies, shall be invested in Government securities, under sub -section (7) of section 35 of the Ordinance. (2) A further ten percent of the assets of the shareholders’ fund of a life insurer, or of a statutory fund of a life insurer, other than a statutory fund which contains only investment linked policies, shall be invested in a combination of Government securities and other approved securities, under sub -section (7) of section 35 of the Ordinance:
    Provided that for the purposes of computation of the limits provided at sub-rule (1) and (2) above, inter-fund receivables of a shareholders’ fund or a statutory fund and right of use assets, other than right of use assets created against vehicle, office equipment and intangible assets, shall be excluded.]
17. Requirement to effect and maintain reinsurance arrangements.- (1) For the purposes of sub￾sections (2) and (3) of section 41 of the Ordinance, the following information shall be submitted in
    respect of each reinsurance arrangement namely:- (a) Type of reinsurance treaty; (b) number of lines or slabs, as the case may be; (c) insurers maximum retention; (d) maximum liabilities under total reinsurance treaty; (e) estimated premium income; (f) aggregate commission loss limit, if any; (g) commission; (h) profit commission; (i) over riding commission;

12 Rule 16 substituted by S.R.O. 1012(I)/2022 dated July 5, 2022. Rule 16 before substitution stated:
16. Assets to be invested in securities.- (1) Thirty per cent of the assets, excluding inter-fund receivables
of the shareholders‘ fund of a life insurer, or of a statutory fund of a life insurer, other than a statutory fund which contains only investment linked policies, shall be invested in Government securities, under sub -section (7) of section 35 of the Ordinance. (2) A further ten percent of the assets, excluding inter-fund receivables of the shareholders‘ fund of a life insurer, or of a statutory fund of a life insurer, other than a statutory fund which contains only investment linked policies, shall be invested in a combination of Government securities and other approved securities, under sub -section (7) of section 35 of the Ordinance.

(j) name and addresses of re-insurers with their respective shares and their rating by reputable international rating agencies; (k) maximum liabilities of each reinsurer; and (l) name and addresses of broker who placed reinsurance. (2) If the insurer’s retention is based on maximum probable loss the maximum liabilities of each reinsurer must be stated, including maximum liability under the total reinsurance treaty and a separate statement for each class or sub-class of business shall be furnished.
18. Reinsurance outside Pakistan.—(1) For the purposes of sub -section (5) of section 41 of the
Ordinance, no insurer shall reinsure facultatively outside Pakistan any insurance business or any part thereof underwritten by it in Pakistan without the permission of the Commission. (2) The Commission may, grant permission under sub - rule (1) in any of the following circumstances, namely:
(a) The insurance or any part thereof is in excess of the insurer‘s treaty arrangements, and the Commission is provided with documentary evidence that such excess cannot be reasonably placed within Pakistan; (b) the insurance business, although covered by a treaty arrangement shall be desired to be reinsured facultatively for protecting the treaty or for any other special reason, subject to satisfaction of the Commission; Provided that such facultative reinsurance shall not run contrary to subsisting contractual obligations under the treaty; and (c) the insurance business is of special nature and there are no treaty arrangements for it. (3) No insurer in Pakistan shall accept reinsurance on facultative basis in excess of its net retention if the insurer seeking such reinsurance so indicates in the reinsurance slip, request note or otherwise in writing.
19. Accounting and reporting.- For the purposes of sub-sections (1) and (2) of section 46 of the
Ordinance, the statements as set out in Annexure II shall be furnished.
Provided that annual accounts for the period ended 31 st December, 2016 and quarterly accounts for the period ending 31 st March 2017 shall be prepared in accordance with the previous requirements. Provided further that where the Commission is satisfied that it is not practicable to give effect or comply with the formats annexed as Annexure II under this rule, the Commission may, for reasons to be recorded in writing, relax such requirement subject to such conditions as it may deem fit.
20. Additional copies.- (1) For the purposes of sub-sections (1) and (2) of section 47 of the
Ordinance, the number of additional copies required to be delivered shall be one, which shall be delivered in printed form to the Insurance Division of the Commission.

(2) For the purposes of sub-section (4) of section 47 of the Ordinance, one translation either into the English or Urdu language shall accompany each copy in the original language required to be delivered, and that translation shall be duly attested.
21. Fees for special audit.- (1) The fees payable under sub-section (4) of section 49 of the
Ordinance to an auditor for a special audit shall be such as may be determined by the Commission on case-to-case basis. (2) The Commission shall in determining such fees have regard to, without limitation- (a) the size of an insurer and the complexity of the business of the insurer; (b) the quality of the books and records of the insurer; (c) the nature of the considerations which led the Commission to direct that the special audit be performed and the impact of such considerations on the risk of material error in the company’s records and returns and the difficulty of performance of the special audit; (d) the seniority and experience of the persons involved in the special audit; (e) the amount of time necessarily expended on the special audit; (f) the amount of money disbursed as expenses in the conduct of the special audit; and (g) the fees ordinarily charged for specialist auditing services.
22. Financial Condition Report. - For the purposes of Section 50 of the Ordinance, the Financial
Condition Report shall be prepared in accordance with the requirements prescribed in Annexure IV.
23. Minimum valuation basis.- For the purposes of sub-section (5) of section 50 of the Ordinance,
the minimum valuation basis shall be such as is set out in Annexure V.
24. Financial Statements of Life Insurance Companies. (1) For the purposes of section 52 of the
Ordinance, the statements required to be filed by life insurers under the Companies Ordinance, 1984 (XLVII of 1984), shall be as set out in Annexure II. (2) The Commission may, by notification in the official Gazette, not inconsistent with these rules, provide for accounting and presentation procedures for preparing financial statements under this rule, and the basis of calculation of any amount or ratio required under this rule to be included in any statement forming a part of those financial statements.
25. Power of the Commission to Issue Directives.- For the purposes of section 60 of the
Ordinance, the Commission may, if it believes on reasonable grounds that an insurer registered with the Commission under the Ordinance, has failed, or is about to fail, to comply with the conditions of registration set out in section 11 of the Ordinance, issue such direction, not inconsistent with and not otherwise provided in the Ordinance, to protect the interest of the policyholders, as it deem appropriate.
26. Procedure to be followed by the Commission while issuing direction under rule 25.- While
issuing directions the Commission shall follow the following procedure.- (a) Establishment of Non-Compliance with Section 11: The Commission shall ensure that there is

a reasonable ground that an insurer has failed, or is about to fail, to comply with any conditions of registration set out in section 11 of the Ordinance. (b) Notice of Non-Compliance: The Commission shall send a notice to insurer to inform him in writing the details and nature of non-compliance or potential non-compliance with section 11 and give fifteen days time period to respond to such notice in writing. (c) Extension of time to respond to the Notice of Non-Compliance: The Commission may grant an extension of time period not exceeding fifteen days to the insurer to respond to the notice as per sub-rule (b) above:
Provided that no further extension shall be granted if an insurer fails to respond to such notice within the stipulated time period. (d) Hearing Opportunity: Based on the insurer’s written response of the notice, where the Commission determines that the non-compliance or potential non-compliance with Section 11 still exists, the Commission shall, while adjudicating upon the rights of insurer or imposing any other penalty, provide an opportunity of hearing to the insurer within a period of fifteen days by informing the insurer in writing:
Provided that the Commission may grant an extension of time period not exceeding fifteen days to the insurer on the written application of insurer to that effect and no further extension shall be granted where an insurer refuses or fails to avail such hearing opportunity within the stipulated time period. Provided further that where the Commission is satisfied that delay in issuing direction to the insurer shall be detrimental to the interest of the insurance policy holders and immediate regulatory action is required, the Commission may, after recording reasons in writing, immediately issue interim direction to an insurer till the time an opportunity of hearing is provided and a final decision is taken within a period of not more than thirty days. (e) Other Considerations: Where the Commission determines that non-compliance or potential non-compliance to Section 11 still exists, the Commission shall issue such directions to the insurer, having regards to the aspects given under sub-section (4) of section 22 of the SECP Act 1997, (XLII of 1997) as it deem appropriate.
27. Amalgamation and transfer of life insurance business.- The statement of assets and liabilities
required under clause (b) of sub-section (3) of section 68 of the Ordinance shall be made as set out in Annexure I.
28. Procedure when nominee is a minor.- (1) For the purposes of the proviso to sub-section (1) of
section 72 and the proviso to sub -section (1) of section 73 of the Ordinance, an appointment shall be
made in writing and signed by the policy holder making the appointment and shall be communicated to the insurer.

(2) Any appointment referred to in sub-rule (1), in order to be effectual shall, unless incorporated in the text of the policy itself, be made by an endorsement on the policy. (3) Any appointment referred to in sub-rule (1) may, at any time before the policy matures for payment, be cancelled or changed by an endorsement, or further endorsement, as the case may be, and communicated to the insurer.
29. Nomination under group life insurance policies.- A nomination under section 73 of the
Ordinance shall be made in writing and shall be either— (a) signed by the person whose life is insured under a contract of group life insurance; or (b) affixed with the thumb impression of the person whose life is insured under a contract of group life insurance, if he is illiterate, after it has been read to him in the presence of a responsible person, who shall sign the nomination as witness to the fact that it has been so read, and shall be furnished to the policy holder.
30. Compliance visiting.- (1) This rule refers to the powers given to the Commission to conduct
compliance visits under section 84 and 110 of the Ordinance.
(2) A compliance visit by the Commission or a delegate of the Commission to the premises of an insurer, an agent, or a broker (‘party visited’) shall not constitute an investigation or an audit under the Ordinance. (3) The Commission shall give not less than two week’s written notice of an intention to perform a compliance visit, and shall have regard to the convenience of the party proposed to be visited in setting the date, time, place and duration of the visit:
Provided that if the Commission believes on reasonable grounds that waiver of notice is necessary to prevent breach of the Ordinance, or to prevent concealment of evidence of actual or apprehended breach of the Ordinance, the period of notice may, with the consent of the Chairman of the Commission, be reduced to twenty-four hours. (4) The notice of a visit shall set out the provision or provisions of the Ordinance, rules, regulations or directives of the Commission in respect of which it is proposed to verify compliance. (5) A visit under this rule shall not be carried out in such a way as to disrupt unduly the operations of the party visited. (6) A party visited shall not be visited again under this rule until the elapse of not less than six months from the termination of the previous visit, except to the extent that the Commission believes on reasonable grounds that a subsequent visit is necessary to satisfy it that appropriate action is being taken to remedy a defect noted on a compliance visit. (7) A party visited shall co-operate fully with the Commission in the conduct of compliance visit, and shall make available such books and records, information and explanations as the Commission may reasonably require. (8) The Commission shall give to a party visited, within one month following the completion of compliance visit, a written report on the results of the compliance visit.

(9) The party visited shall, if the Commission so requires, respond to the written report referred to in sub-rule (8) within one month following receipt by the visited party of the report. (10) The Commission may have regard to the results of a compliance visit in deciding whether to take any action in respect of a party visited under powers given to the Commission under the Ordinance, rules or regulations; provided that no such action shall be taken without giving the party visited an opportunity to be heard.
31. Independent insurance survey to be conducted.- []
13 For the purposes of sub-section (1) of
section 85 of the Ordinance, the Commission, may direct the insurer to arrange for an independent or
another survey of the loss through another surveyor or surveyors approved by the Commission, if in case the Commission has reason to believe that an insurance surveyor has given a false report or has grossly over-assessed or under-assessed a loss or has made an adjustment of loss in a grossly unjust manner. [] 14
32. Paid-up policy values.- (1) For the purposes of clause (b) of subsection (3) of section 92 of the
Ordinance, the paid-up policy value shall, in the case of participating and non-participating conventional contracts, before the inclusion of bonuses, be not less than- (a) where the whole of the benefits payable under the policy are payable on a particular date or on the happening of a particular event, the amount bearing to the total sum insured by the policy exclusive of bonuses the same proportion as the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable; and (b) where the benefits payable under the policy are payable on two or more dates, the amount bearing to total of each planned payment exclusive of bonuses the same proportion as the total period for which premiums have been paid bears to the maximum period for which premiums were originally payable less any benefit paid earlier. (2) In the case of unit linked and universal life contracts, the paid-up policy value shall be determined in any of the following two manners:
(a) the paid up sum insured shall not be less than the amount of sum cover of the policy at inception, as long as the cash value in the unit/investment account is sufficient to meet the ongoing periodic administration charges and insurance coverage charges, otherwise the policy would lapse without value. Under this option, the paid up sum insured is payable at the death of the life assured. (b) The paid up sum insured shall be reduced to zero and the policy shall be maintained for the unit/investment account only. In such case, the insurance coverage charges, shall not be deducted and only the administrative charge shall be deducted. Under this option, the amount payable on the death of the life insured shall be the unit/investment account value, if any.

13 The words “(1) Subject to sub-rule (2),” omitted by S.R.O. 658(I)/2018 dated 28 th May, 2018. 14 Sub-rule (2) of rule 31 omitted by S.R.O. 658(I)/2018 dated 28 th May, 2018. Omitted rule 31(2) stated:
“(2) Independent survey shall be conducted in respect of the claim lodged for the amount exceeding one hundred thousand rupees except in case of motor and casualty insurance where the amount of loss or claim is for more than fifty thousand rupees.

33. Conduct of agents and insurer.- (1) For the purpose of sections 96 to 99 of the Ordinance, the
    following actions of an agent shall be treated as violations of the Ordinance, and the agent shall be disqualified from engaging into the business of insurance agency for a period of five years, namely:- (a) Acts as agent in breach of any of the sub-sections of section 96; (b) holds the property or other documents and cover notes of the previous insurer after entering into the contract of agency with the new insurer; (c) fails to pass on the payment received from the policyholder to the insurer within the prescribed time as per sub-section (2) of section 99; and (d) receives from or pays to a policyholder or intending policyholder any sum in relation to the contract of insurance without prior approval of the insurer in violation of sub-section (3) of
    section 99.
    (2) For the purposes of sections 96 to 99, the following actions of an insurer shall be treated as violations of the Ordinance, and the insurer shall be liable to penalty as per section 156 of the Ordinance, namely:- (a) Appoints a person as an agent in breach of any of the subsections of section 96; (b) fails to take action as provided in sub-rule (3) on the written complaint of the policyholder or intending policyholder within a period of two months; (c) knowingly permits a disqualified agent to obtain and operate another contract of insurance agency in the name of another person or close relative who is not an active insurance agent; (d) pays commission or other remuneration to an agent in violation of sub-section (5) of section 99; and (e) fails to disqualify an agent found guilty of offence under sub-rule (1). (3) On receipt of a written complaint from the policyholder or intending policyholder that an agent or any other person related to the agent has received money in relation to a contract of insurance from the complainant and the agent has failed to deposit this money with the insurer, the insurer shall conduct an inquiry into it and inform the policyholder or intending policyholder, as the case may be, about the outcome of the inquiry within two months period of the complaint.
34. Qualifications required of insurance agents.- For the purposes of section 97 of the Ordinance,
    the following shall be the prescribed qualifications, namely:- (a) For persons holding licence of insurance agent or certificate of employer of agents under the repealed Act, there shall be no prescribed qualifications; and (b) for persons entering into agency contracts after commencement of the Ordinance, the minimum qualification shall be Matriculate or Secondary School Certificate, and in the case of a natural person, that person, or in the case of a body corporate, each director, or in the case of a partnership, each partner, shall have the said qualification, and -

(i) agents operating in the non-life insurance business shall be required to complete the foundation course of the Pakistan Insurance Institute or a foundation course of thirty days’ duration, to be organized in-house by the concerned insurance company, subject to that insurance company having prior approval of the course syllabus by the Commission; and (ii) agents operating in the life insurance business shall be required to complete a foundation course of three months duration, to be organized by the concerned insurance company. [(c) for persons entering into agency contracts with insurers after April 1, 2023, following shall be the prescribed qualification in respect of a natural person, and in the case of a body corporate or a partnership, each of its designated persons engaged in insurance sales: - (i) for life insurance, Matriculate or Secondary School Certificate (SSC) and a sixty (60) days foundation course based on a curriculum notified by the Commission, to be conducted by the respective Insurer or an institute approved by the Commission, and shall also be examined and certified by an institute approved by the Commission within a period of six months from the date of entering into agency contract; or Higher Secondary School Certificate or equivalent and 60 hours foundation course based on a curriculum notified by the Commission conducted by the respective insurer or an institute approved by the Commission, and shall also be examined and certified by an institute approved by the Commission within a period of six months from the date of entering into agency contracts. (ii) For non-life insurance, Higher Secondary School Certificate or equivalent and 60 hours foundation course based on a curriculum notified by the Commission conducted by the respective insurer or an institute approved by the Commission, and shall also be examined and certified by an institute approved by the Commission within a period of six months from the date of entering into agency contracts:
Provided that agents and designated persons may be given exemption from the requirement of foundation course who meet such criteria and requirements as may be specified by the Commission through notification. Provided further that the person who has completed agent foundation course from an insurer/ approved institute and has obtained certification from an approved institute during agency with an insurer, will not be required to undergo the complete agent foundation course on joining the different insurer and may start agency with another insurer after completing the refresher course.]

15 Substituted by S.R.O. 436(I)/2023 dated March 28, 2023. Clause (c) before substitution stated:
(c) for persons entering into agency contracts with insurers after June 30, 2017, the minimum qualification shall be Higher Secondary School Certificate or equivalent, and in the case of a natural person, that person, or in the case of a body corporate or a partnership, each of its designated persons engaged in the business of insurance sales, shall have the said qualification, and such agents or designated person shall be required to undergo a foundation course based on a curriculum as approved by the Commission within a period of one year from the date of entering into agency contracts, conducted by the respective insurer or an institute recognized by the Commission, and shall also be examined and certified by an institute. The agents or designated person shall also be required to attend a refresher course after every two years from such institute(s) as specified by the Commission for the purposes of continued professional education:

[(d) The agents or designated person shall also be required to attend a refresher course after every two years from the institute approved by the Commission or complete CPD hours as notified by the Commission from the institute approved by the Commission.]
35. Registration of insurance agents.- Every insurer shall, in the register required to be kept by it
for the purposes of sub -section (1) of section 98 of the Ordinance, maintain the following details in respect of each insurance agent, namely:
(a) For a natural person:
(i) his name;
(ii) his date of birth;
(iii) his residential address;
(iv) his postal address (if different);
(v) the names of persons employed by the insurance agent for the purpose of carrying out the business of an insurance agent; (vi) the date of appointment and his registration; and (vii) such other particulars as may be specified by the Commission. (b) For a body corporate:
(i) its name;
(ii) the address of its registered office;
(iii) its postal address (if different);
(iv) a description of the business carried on by it (other than insurance agent); (v) the names of shareholders holding more than ten per cent of the issued share capital;

Provided that agents and designated persons may be given exemption from the requirement of foundation course who meet such criteria and requirements as may be approved by the Commission from time to time, but such exemption shall be availed through registering with an institute as approved by the Commission. Provided further that agents or designated persons who are matriculate or hold Secondary School Certificate and have already completed a foundation course, in case of non-life insurance from Pakistan Insurance Institute and in case of life insurance from the respective insurer prior to commencement of this sub-rule, shall stand exempted from the requirement of foundation course. Such person shall, however, be required to register with an institute as approved by the Commission within three months of the date of effect of this sub-rule and attend a refresher course after every two years from such institute(s) as specified by the Commission for the purposes of continued professional education. 16 Inserted by S.R.O. 436(I)/2023 dated March 28, 2023

(vi) the date of appointment and its registration; and (vii) such other particulars as may be specified by the Commission. (c) For a firm:
(i) its name;
(ii) the address of its principal office;
(iii) its postal address (if different);
(iv) a description of the business carried on by it (other than insurance agent); (v) the names of the partners in the firm; and (vi) the date of appointment and its registration.
36. Statement and declaration required of insurance agents.- (1) Every insurer shall, before
appointing an insurance agent, and thereafter at intervals of not less than twelve months, obtain from every insurance agent continuing to be appointed by it a statement of the information required under Rule 35 to be held by it in its register. (2) Every statement obtained under sub-rule (1) shall be accompanied by a declaration by the insurance agent stating that— (a) the information given by him in accordance with sub-rule (1) is complete and correct; (b) he has complied with the requirements of the Ordinance and the rules made thereunder concerning the required qualifications of an agent; (c) he is (in the case of an existing agent) engaged or (in the case of an agent seeking appointment) proposes to engage bona fide in obtaining insurance policies for the insurer to whom the declaration is made; (d) he undertakes to comply, and (in the case of an existing agent) declares that he has during the previous twelve months complied with the relevant provisions of the Ordinance and the rules made thereunder concerning the conduct of an agent; and (e) he, or, in the case of a body corporate, any director of the body corporate, or officer of the body corporate engaging in the business of insurance agency, or, in the case of a firm, any partner of the firm, or officer of the firm engaging in the business of insurance agency, is not disqualified from acting as an insurance agent by virtue of:- (i) being a minor; (ii) having been found of unsound mind by a Court of competent jurisdiction; (iii) having been found guilty, within the five years preceding the date of the declaration, of criminal misappropriation or criminal breach of trust, cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction;

(iv) having served any custodial sentence imposed by a Court of competent jurisdiction, ending within the five years preceding the date of the declaration; (v) having been found guilty by a Court of competent jurisdiction of any offence involving insurance; or (vi) having been otherwise declared as disqualified by the Insurance Tribunal, other than for a term which had expired prior to the date of the declaration. (3) Every statement and declaration required under this rule shall be made in writing and the declaration shall be signed — (a) in the case of a natural person, by the applicant and duly attested in the presence of witnesses who shall, not be related to the applicant; (b) in the case of a body corporate, by not fewer than two directors of the body corporate and duly attested; and (c) in the case of a firm, by not fewer than two partners of the firm and duly attested. (4) The statement and declaration shall be retained by the insurer for a period of not less than five years from the date of the declaration and shall be produced to the Commission on demand. (5) An agent shall notify to the insurer of any change in the details required under sub-rule (1) within three months of that change having effect, such notification to be in writing and signed — (a) in the case of a natural person, by the agent and duly attested in the presence of witnesses who shall not be related to the agent; (b) in the case of a body corporate, by not fewer than two directors of the body corporate and duly attested; and (c) in the case of a firm, by not fewer than two partners of the firm and duly attested. (6) If an agent or, in the case of a body corporate, any director or officer of the body corporate engaging in the business of insurance agency, or, in the case of a firm, any partner or officer of the body corporate engaging in the business of insurance agency becomes disqualified for any reason from acting as an insurance agent, the agent shall within seven days notify the insurer of the disqualification and shall forthwith cease, or cause the disqualified person to cease, engaging in the business of insurance agency. (7) In addition to the statement and declaration under this rule, the insurer may, as and when it deem necessary, call for other information, documents, photographs, etc.
37. Requirements for insurance broker’s licence.- For the purposes of sub-section (3) of section
102 of the Ordinance, the following shall be the prescribed qualifications of a company for issuance of an insurance broker‘s licence, namely:- (a) A minimum paid-up share capital of not less than fifteen million rupees for an insurance broker to be registered in Pakistan:

Provided that existing licensed insurance brokers who have paid up capital less than the minimum required amount shall comply with enhanced requirement of the paid up capital by December 31, 2017:
(b) cash or approved securities to the value of ten percent (10%) of the minimum prescribed paid up capital of the insurance broker, deposited with the State Bank of Pakistan; Provided that existing licensed insurance brokers shall comply with the requirement of statutory deposit by December 31, 2017. (c) professional indemnity insurance, to a limit of thirty million rupees for any one occurrence; Provided that existing licensed insurance brokers shall comply with the requirement of professional indemnity insurance on the expiry of their active licence after coming into force of this provision. The insurance cover must indemnify an insurance broker against:
(i) Any error or omission or negligence on his part or on the part of his employees and directors; (ii) Any loss of money or other property for which the broker is legally liable in consequence of any financial or fraudulent act or omission; (iii) Any loss of documents and costs and expenses incurred in replacing or restoring such documents; (iv) The indemnity cover:
(a) Should be on a yearly basis for the entire period of license; (b) Should not contain any terms to the effect that payments of liabilities (claims under the policy) depend upon the insurance broker having first met the liability; (c) Should indemnify in respect of all liabilities (claims under the policy) made during the period of the insurance regardless of the time at which the event giving rise to the claim may have occurred. (d) every registered insurance broker shall maintain a net equity, which is total assets of the insurance broker over its total liabilities, of at least following percentages of their minimum paid-up capital, as per the following schedule:
st Year of Business 2 nd Year of Business 3 rd Year of Business 4 th Year of Business and onwards 35% 50% 60% 70% Provided that existing insurance brokers shall comply with this requirement as per the above schedule from the date of coming into force of this provision.

Provided further that while determining the value of the assets owned by a company, any amount on account of goodwill or of any other intangible asset like deferred tax asset, shall be disregarded. (e) the body corporate engaging in the business of insurance broking — (i) has not been found guilty, within the five years preceding the present date, of criminal misappropriation or criminal breach of trust, cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction; (ii) has not been found guilty by a Court of competent jurisdiction of any offence involving insurance; or (iii) has not been otherwise declared as disqualified by the Insurance Tribunal, other than for a term which had expired prior to the present date.
38. Fitness and propriety requirements for the Chief Executive and Directors of
Insurance Brokers.- (1) For the purposes of sub-section (3) of section 102 of the Ordinance, the following shall be the prescribed fitness and proprietary requirements for the Chief Executive Officer and Directors of the insurance broker. Provided that a proposed director or chief executive officer of an insurance broker shall not assume the charge of office until his appointment has been approved by the Commission. (2) The fitness and propriety of the chief executive officer and director of an insurance broker shall be assessed by taking into account all the relevant factors including but not limited to the following:
(a) In determining a person's integrity and track record, a person shall not be considered a Fit and Proper person if such person:
(i) has been convicted in criminal breach of trust, fraud, etcetera; (ii) has been convicted of an offence involving moral turpitude; (iii) has been subject to adverse findings, after conducting an inquiry, by the Commission or any other regulatory, judicial or professional body or any government agency or authority; (iv) has been involved in the financial irregularities or malpractices in a Company due to which the registration or license of the Company has been revoked or cancelled or which has gone into liquidation or other similar proceedings; (v) is ineligible, under the Companies Ordinance, 1984 or any other legislation from acting as a director; (vi) has entered into a plea bargain arrangement with the National Accountability Bureau or any other regulatory body; (vii) having served any custodial sentence imposed by a Court of competent jurisdiction, ending within five years preceding the date of the declaration; or (viii) having been otherwise declared as disqualified by the Insurance Tribunal, other than for a term which had expired prior to the date of the declaration.

(b) In determining a person's financial soundness, the following shall be considered:
(i) all persons subject to this Rule shall submit an affidavit to the Commission affirming under the oath that the person and the companies, firms, sole proprietorship etc. where the person is a chief executive, director (other than nominee director), owner or partner etc. has no overdue payment of any financial institution. Provided that the Commission shall provide an opportunity of making representation to the person in case of overdue or past due payment; (ii) all persons subject to this Rule shall not be considered as fit and proper if any overdue/past due payment to a financial institution, irrespective of amount, is appearing in the overdue column of latest CIB report of the person and of the companies, firms, sole proprietorship etc. where the person is a chief executive, director (other than nominee director), owner or partner etc. Provided that the following exceptions may be granted by the Commission for the purpose of this clause in case where:
(a) Amount overdue is under litigation and the same is also appearing as amount under litigation in the CIB report; and (b) No overdue payment appearing in the overdue column in the subsequent latest CIB report. (iii) all persons subject to fit and proper criteria under this Rule shall report any change with reference to their financial soundness to the insurance broker within three business days and the insurance broker shall within a period of seven business days report the same to the Commission. (iv) whether the person has applied to be adjudicated as an insolvent and his application is pending; or (v) whether the person is an un-discharged insolvent. (c) In determining a person's competence and capability the following shall be considered:
(i) the chief executive must have a minimum educational qualification of a bachelor's degree or equivalent from an institution recognized by the Higher Education Commission of Pakistan or foreign qualification of equivalent level recognized by the Higher Education Commission of Pakistan along with insurance related qualification, with at least five years of management cadre experience working with an insurer, reinsurer or an insurance/reinsurance broker or surveyor/loss adjustor or corporate agent or in such capacity, in an entity related to insurance business, or at least seven years of senior level experience with any financial institution as it may satisfy the Commission. (d) The position of chief executive or director of an insurance broker shall not give rise to any conflict of interest or potential conflict of interest in accordance with the provisions of the Ordinance.

(e) After coming into force of these provisions, the insurance broker applying for a new license shall ensure that the person appointed as chief executive officer or director is in compliance with these provisions; however, the existing chief executive officer and directors of an existing insurance broker shall comply with these requirements as follows:
(i) the chief executive officer of an insurance broker shall comply with these provisions before the commencement of his new term in the office, if any, as chief executive officer (ii) the existing directors of an insurance broker shall comply with these provisions before the commencement of their new term in the office, if any, as directors.
39. Licensing of insurance brokers.- (1) An application for grant of a licence or renewal of
licence to act as an insurance broker shall, for the purposes of sub-section (4) or (5) of section 102 of the Ordinance, shall contain the following details in respect of the applicant, namely :- (a) registered name of the insurance broker; (b) the address of its registered office; (c) its postal address (if different); (d) details of the insurance broking business to be carried out by the new insurance broker and in case of an existing insurance broker, details of the insurance broking business carried out during the last year including but not limited to the break-up of the revenue/income into reinsurance/insurance commission, brokerage commission, brokerage fees and details of any other revenue/income along with the detailed break-up of the expenses incurred; (e) the names of insurance companies, if any, which have appointed the applicant as insurance agent along with the details of these arrangements; (f) details of the pattern of shareholding of the issued share capital of the insurance broker; and (g) for the purposes of Rule 38 above, details of the Chief Executive and Directors of the insurance broker and duly signed declaration in the form as set out in Annexure VI and VII, respectively; (h) the annual audited accounts of the insurance broker referred to in rule 50 of these rules. (2) Every application made under sub-rule (1) shall be accompanied by a declaration by the applicant stating that – (a) the information given by him in accordance with sub-rule (1) is complete and correct; (b) he has complied with the requirements of the Ordinance and the rules made thereunder concerning the required qualifications of an insurance broker; (c) he undertakes to comply, and (in the case of an existing insurance broker) declares that he has during the previous twelve months has complied with the Ordinance and the rules made thereunder concerning the conduct of an insurance broker; and (d) the body corporate engaging in the business of insurance broking —

(i) has not been found guilty, within the five years preceding the present date, of criminal misappropriation or criminal breach of trust, cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction; (ii) has not been found guilty by a Court of competent jurisdiction of any offence involving insurance; or (iii) has not been otherwise declared as disqualified by the Insurance Tribunal, other than for a term which had expired prior to the present date. (3) The application under this rule shall be in writing and signed by at least two directors while the declaration required under this rule shall also be signed by at least two directors of the insurance broker on a stamp paper of appropriate value. (4) Any application for issue of initial authorization to act as an insurance broker shall be accompanied by a fee of [rupees fifty thousand] 17, which shall be refunded in full by the Commission if the authorization is not granted. [(5) An application for renewal of authorization to act as an insurance broker shall be submitted to the Commission at least one month prior to the expiry of the licence and shall also be accompanied by a renewal fee of rupees thirty seven thousand five hundred or rupees one for every rupees one thousand of the gross revenue, without netting off any expenses, whichever is higher during the preceding financial year, subject to a maximum of rupees two hundred and fifty thousand.] (6) An insurance broker shall notify to the Commission of any change in the details required under sub￾rule (1) immediately and not later than two weeks of that change having effect, such notification being in written form and signed by at least two directors of the body corporate.
40. Protection of run-off. —For the purposes of sub-section (1) of section 107, the level of
professional indemnity insurance shall be thirty million rupees and the period for which such run-off insurance is required shall be five years or until all liabilities of an insurance broker are irrevocably transferred to another licensed insurance broker, whichever is the earlier.
41. [Classes of insurance surveyors.— (1) For the purposes of section 114 of the Ordinance, the
following shall be the main classes of insurance surveyors, namely :- (a) Fire and property damage business; (b) Marine, aviation and transport business; (c) Motor business (to include own damage and third party liability); (d) Miscellaneous business;

17 Substituted for “rupees one hundred thousand” by S.R.O. 550(I)/2020 dated 10 th June, 2020. 18 Sub-rule (5) substituted by S.R.O. 550(I)/2020 dated 10 th June, 2020. Sub-rule (5) before substitution stated:
(5) An application for the renewal of authorization to act as an insurance broker shall be submitted to the Commission at least one month prior to the expiry of the licence and shall also be accompanied by a renewal fee of rupees seventy five thousand rupees or rupees two for every rupees one thousand of the gross revenue, without netting off any expenses, whichever is higher during the preceding financial year, subject to a maximum of rupees five hundred thousand.

Provided that miscellaneous business shall be classified into following sub-classes, namely:- (i) Liability business; (ii) Workers compensation business; (iii) Credit and surety ship business; (iv) Accident and health business; (v) Agriculture insurance including crop insurance; (vi) Engineering business including machinery breakdown; and (vii)Others. (2) A licence granted by the Commission under section 112 of the Ordinance shall specify the main class of insurance surveyors for which the licence is granted. Provided that existing licencees as insurance surveyors shall apply for the licence of the main classes referred in sub-rule (1) on the expiry of their valid licence as on the commencement date of this notification. Provided further that the insurance surveyors having licence for the miscellaneous class on the commencement date of this sub-rule shall at the time of renewal of their existing licence be issued a licence of miscellaneous business confirming that the applicant is eligible to undertake all the sub-classes stated at sub-clause (i) to (vii) of clause (d) of sub-rule (1) above. (3) A certificate of registration as an authorized surveying officer under section 113 of the Ordinance shall specify the main class of insurance surveyors for which the certificate of registration is granted. Provided that existing licencees as authorised surveying officers shall apply for the licence of the main classes referred in sub-rule (1) on the expiry of their valid licence as on the commencement date of this notification. Provided further that the authorised surveying officers having licence for the miscellaneous class on the commencement date of this sub-rule shall at the time of renewal of their existing licence be issued a licence of miscellaneous business confirming that the applicant is eligible to undertake all the sub-classes stated at sub-clause (i) to (vii) of clause (d) of sub-rule (1) above.]

19 Rule 41 substituted by S.R.O. 658(I)/2018 dated 28 th May, 2018. Rule 41 before substitution stated:
41. Classes of insurance surveyors.— (1) For the purposes of section 114 of the Ordinance, the following
shall be the classes of insurance surveyors, namely :- (a) Fire and property damage business. (b) Marine, aviation and transport business. (c) Motor third-party compulsory business. (d) Liability business. (e) Workers compensation business. (f) Credit and surety ship business. (g) Accident and health business. (h) Agriculture insurance including crop insurance. (i) Miscellaneous business (business which does not relate to the classes mentioned above). Provided that existing licencees shall apply for the licence of the above classes on the expiry of their licence.

42. Conditions for licensing of insurance surveyors.— For the purposes of subsection (3) of
    section 112 of the Ordinance, the following shall be the prescribed conditions, namely :—
    (a) [For the purposes of clause (a) of that sub-section, the prescribed minimum paid-up share capital shall be one million rupees. A surveying company registered under this Ordinance shall at all times ensure that the provision relating to minimum paid up share capital requirements are complied with.] (b) for the purposes of clause (b) of that sub-section, the prescribed minimum level of professional indemnity insurance shall be [one million rupees for any one event] 21 and such insurance shall extend to a body corporate and all directors or officers of the body corporate who act as authorized surveying officers; (c) for the purposes of clause (e) of that sub-section, there shall be [an] 22 approved professional association [which shall be determined by the Commission] 23; and (d) for the purposes of clause (f) of that sub-section, the following shall be the prescribed other conditions, namely:— (i) At least one officer or director who is individually certified as an authorised surveying officer for the class or classes of insurance surveyor in which a body corporate acts or proposes to act; and

Provided further that the persons having licence for the miscellaneous class and allowed to undertake class of insurance surveyors stated at clause (d), (e), (f), (g) and (h) of this sub-rule, on the date of notification of these rules shall be issued licence for the classes as aforesaid within a year of coming into force of this sub-rule. (2) A licence granted by the Commission under section 112 of the Ordinance shall specify the class of insurance surveyors for which the licence is granted. (3) A certificate of registration as an authorized surveying officer under section 113 of the Ordinance shall specify the class of insurance surveyors for which the certificate of registration is granted. 20 Rule 42(a) substituted by S.R.O. 658(I)/2018 dated 28 th May, 2018. Rule 42(a) before substitution stated:
(a) For the purposes of clause (a) of that sub-section, the prescribed minimum paid-up share capital shall be two million rupees; Whereas, the existing insurance surveyors shall comply with the requirement of minimum paid up share capital by December 31, 2017. A surveying company registered under this Ordinance shall at all times ensure that the provision relating to minimum paid up share capital requirements are complied with. 21 Substituted for “three million rupees” by S.R.O. 658(I)/2018 dated 28 th May, 2018. 22 Substituted for “an” by S.R.O. 658(I)/2018 dated 28 th May, 2018. 23 Inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018.

(ii) neither a body corporate in respect of such of the following conditions as apply to the body corporate, nor any director of the body corporate in respect of such of the following conditions as apply to a natural person— (a) is a minor; (b) has been found of unsound mind by a Court of competent jurisdiction; (c) has been found guilty, within the five years preceding the present date, of criminal misappropriation or criminal breach of trust, cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction; (d) has served any custodial sentence imposed by a Court of competent jurisdiction, ending within five years preceding the present date; (e) has been found guilty by a Court of competent jurisdiction of any offence involving insurance; (f) has been otherwise declared as disqualified by the Insurance Tribunal, other than for a term which had expired prior to the present date; or (g) has directorship of any insurance brokers company formed under Section 102 of the Ordinance.
43. Grant of licences to insurance surveyors. — (1) An application for grant of licence for any class
of insurance surveyors, for which a current licence is not held shall, for the purpose of sub-section (4) of section 112 of the Ordinance, contain the following details in respect of the applicant, namely:
(a) the name of the body corporate;
(b) the address of its registered office;
(c) its postal address (if different);
(d) a description of the business carried on by it (other than insurance surveying); (e) the names of shareholders holding more than ten per cent of its issued share capital; (f) the names of all officers or directors of the body corporate who are individually registered to act as authorised insurance surveyors; (g) the names of other persons employed by the body corporate for the purpose of carrying out the business of an insurance surveyor; (h) the class of surveyors for which licence is sought; [] 24 (i) evidence, in original or certified copy form, of compliance with the prescribed qualifications[; and] 25

24 The word “and” omitted by S.R.O. 658(I)/2018 dated 28 th May, 2018 25 Semicolon and the word “and” inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018

(j) [such other information as may be specified by the Commission in writing.] 26 (2) An application for renewal of a licence for a class of insurance surveyors for which a licence is held shall, for the purposes of sub-section (4) of section 112 of the Ordinance, contain the following details in respect of the applicant, namely:— (a) For a natural person:
(i) his name;
(ii) his date of birth;
(iii) his residential address;
(iv) his postal address (if different);
(v) a description of his occupation (other than insurance surveying); (vi) the name of his employer (if employed); and (vii) the class of surveyors for which renewal of licence is sought. (b) For a body corporate:
(i) its name;
(ii) the address of its registered office;
(iii) its postal address (if different);
(iv) a description of the business carried on by it (other than insurance surveying); (v) the names of shareholders holding more than ten per cent of the issued share capital; (vi) the names of all officers or directors of the body corporate who are individually licensed as an insurance surveyor; (vii) the names of other persons employed by the body corporate for the purpose of carrying out the business of an insurance surveyor; [] 27 (viii) the class of surveyors for which renewal of licence is sought[; and] 28 (ix) [such other information as may be specified by the Commission in writing.] 29 (c) For a firm:

26 Rule 43(1)(j) inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018 27 The word “and” omitted by S.R.O. 658(I)/2018 dated 28 th May, 2018. 28 Semicolon and the word “and” inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018 29 Rule 43(2)(b)(ix) inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018

(i) its name;
(ii) the address of its principal office;
(iii) its postal address (if different);
(iv) a description of the business carried on by it (other than insurance surveying); (v) the names of the partners in the firm; (vi) the names of all officers or partners of the firm who are individually licensed as an insurance surveyor; (vii) the names of other persons employed by the firm for the purpose of carrying out the business of an insurance surveyor; [] 30 (viii) the class of surveyors for which renewal of licence is sought[; and] 31 (ix) [such other information as may be specified by the Commission in writing.] 32 (3) Every application made under sub-rule (1) or sub-rule (2) shall be accompanied by a declaration by the applicant stating that — (a) the information presented in accordance with sub-rule (1) or sub-rule (2), as the case may be, is complete and correct; (b) the applicant has complied with the requirements of the Ordinance and rules concerning the required qualifications of an insurance surveyor; (c) the applicant is not appointed as an insurance agent of an insurance company; (d) the applicant undertakes to comply and, in the case of an existing insurance surveyor, declares that he has during the previous twelve months complied, with the Ordinance and rules concerning the conduct of insurance surveyors; (e) the insurance surveyor or, in the case of a body corporate, any [present] 33 director of the body corporate, or [present] 34 officer of the body corporate engaging in the business of insurance surveying or, in the case of a firm, any [present] 35 partner of the firm, or [present] 36 officer of the firm engaging in the business of insurance surveying, is not disqualified from acting as an insurance surveyor by virtue of:
(i) being a minor;
(ii) having been found of unsound mind by a Court of competent jurisdiction;

30 The word “and” omitted by S.R.O. 658(I)/2018 dated 28 th May, 2018.
31 Semicolon and the word “and” inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018. 32 Rule 43(2)(c)(ix) inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018. 33 Inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018. 34 Inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018. 35 Inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018. 36 Inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018.

(iii) having been found guilty, within five years preceding the date of the declaration, of criminal misappropriation or criminal breach of trust, cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction; (iv) having served any custodial sentence imposed by a Court of competent jurisdiction, ending within five years preceding the date of the declaration; (v) having been found guilty by a Court of competent jurisdiction of any offence involving insurance; or (vi) having been otherwise declared as disqualified by the Insurance Tribunal, other than for a term which had expired prior to the date of the declaration. (4) An application and declaration required under this rule shall be made in written form and the declaration shall be signed — (a) in the case of a natural person, by the applicant in the presence of a witness who shall be a natural person not a related party of the applicant, and who shall also sign the declaration as witness; (b) in the case of a body corporate by at least two directors of the body corporate; and (c) in the case of a firm, by at least two partners of the firm. (5) An insurance surveyor shall inform the Commission of any change in the details required to be given under sub-rule (1) or (2) within three months of that change having taken effect and, such information shall be in written form and signed— (a) in the case of a natural person, by the insurance surveyor and duly attested in the presence of witnesses who shall not be related party of the insurance surveyor; (b) in the case of a body corporate, by not fewer than two directors of the body corporate and duly attested; and (c) in the case of a firm, by not fewer than two partners of the firm and duly attested. (6) An application for grant of a new licence or renewal of a licence for any class of insurance surveyors shall be accompanied by a fee of Rs. 25,000/- (twenty five thousand) which shall be refunded if the licence is not granted. [(7) An application for grant of a new licence for any main class of insurance surveyors shall be accompanied by a fee of Rs. 7,500/- (rupees seven thousand and five hundred) per main class, which shall be refunded if the application is not granted. (8) An application for renewal of a surveyor licence for any main class of insurance surveyors shall be accompanied by a fee of Rs. 5,000/- (rupees five thousand) per main class, which shall be refunded if the application is not granted.

Provided that on the commencement date of sub-rule (7) and (8), the provision of sub-rule (6) shall lapse, and where an applicant for fresh licence or renewal of licence as an insurance surveyor, paid the licence fee to the Commission in accordance with sub-rule (6) above, the Commission shall recalculate the fee as imposed through sub-rule (7) or sub-rule (8), as the case may be, and shall refund the excess amount of fee paid by the insurance surveyor. (9) Where an application for renewal of a licence has been made to the Commission under sub-rule (2) above, but has not been decided by the Commission prior to the expiry date, the licence of the insurance surveyor shall continue to be valid until the application for renewal has been decided by the Commission. Provided that the Commission shall decide the renewal of registration of the insurance surveyor within a period of not more than thirty days from the expiry date of its licence.]
44. Authorised surveying officers — For the purposes of clause (c) of sub-section (3) of section
113 of the Ordinance, any person entitled to apply to be registered as an authorised surveying officer shall possess the following qualifications, namely:- (a) The minimum educational qualification for an insurance surveyor or authorized surveying officer shall be Bachelor‘s Degree in any discipline from a recognized university:
(b) a minimum of three years‘ practical experience of insurance survey in the class or classes of insurance surveyors for which registration is sought, either conducted under the supervision of an insurance surveyor licensed at that time under the Ordinance or registered under the repealed Act, or conducted as an employee of an insurance company; (c) a fresh applicant, seeking first time registration as an authorised surveying officer, shall be registered by the Commission as an authorised surveying officer, on obtaining passing marks in a test for any or all classes of insurance surveying business, which shall be undertaken from any professional institute, approved by the Commission for the purposes of this sub-rule. Provided that, the requirement of this sub-rule, may be waived by the Commission, if the fresh applicant has undertaken a masters’ degree in any discipline from an HEC recognized university and also has minimum of three years of experience in the financial sector. Provided further that, the requirement of this sub-rule, may be waived by the Commission, if the fresh applicant is an associate of the Chartered Insurance Institute and has served in a senior management position in the claims or underwriting department of a non-life insurer for a period of not less than ten years. (d) the person:
(i) is not a minor;
(ii) has not been found of unsound mind by a Court of competent jurisdiction

37 Inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018.

(iii) has not been found guilty within five years preceding the present date of criminal misappropriation or criminal breach of trust cheating or forgery or an abetment of or an attempt to commit any such offence by a Court of competent jurisdiction; (iv) has not served any custodial sentence imposed by a Court of competent jurisdiction ending within five years preceding the present date (v) has not been found guilty by a Court of competent jurisdiction of any offence involving insurance; (vi) has not been otherwise declared as disqualified by the Insurance Tribunal, other than for a term which had expired prior to the present date; and (vii) is not an appointed agent (otherwise than in the sense that a person conducting a survey on the instructions of an insurance company may be described as that company‘s agent) or an employee of an insurance company carrying on business in Pakistan.
45. Training and Continuous Professional Development: [(1) With effect from January 1, 2019,
the directors and chief executive officer of all fresh applicants for Miscellaneous business of survey will submit Continuous Professional Development Certificate as evidence of completion of four days training undertaken during the immediate preceding three years’ from an insurance institute(s), approved by the Commission, in the relevant sub classes.] (2) With effect from [January 1, 2019] 39, an application by an authorized surveying officer for renewal will be accompanied by an evidence of completion of four hours’ Continuous Professional Development in that class in the preceding year from any professional institute, approved by the Commission.
46. Registration of authorised surveying officers.- (1) An application for registration as an
authorised surveying officer for any class of insurance surveyors for which a valid certificate is not held shall for the purposes of sub-section (4) of section 113 of the Ordinance, contain the following details in respect of the applicant, namely :— (i) his name; (ii) his date of birth; (iii) his residential address; (iv) his postal address (if different)

38 Sub-rule (1) of rule 45 substituted by S.R.O. 658(I)/2018 dated 28 th May, 2018. Sub-rule (1) of rule 45 before substitution stated:
“(1) With effect from January 1, 2018, the directors and chief executive officer of all fresh applicants for classes of insurance surveyor business specified at clause (d), (e), (f), (g) and (h) of sub-rule (1) of rule 41 will submit Continuous Professional Development Certificate as evidence of completion of four days training undertaken during the immediate preceding three years’ from an insurance institute(s), approved by the Commission, in the relevant classes.” 39 Substituted for “January 1, 2018” by S.R.O. 658(I)/2018 dated 28 th May, 2018.

(v) a description of his occupation (other than insurance surveying) (vi) the name of his employer; (vii) the class of surveyors for which registration is sought; [] 40 (viii) evidence in original or certified copy form of compliance with prescribed qualifications[; and] 41 . (ix) [such other information as may be specified by the Commission in writing.] 42 (2) An application for renewal of registration as an authorised surveying officer for a class of insurance surveyors for which registration is held shall, for the purposes of sub-section (4) of section 113 of the Ordinance, contain the following details in respect of the applicant, namely :- (i) His name; (ii) his date of birth; (iii) his residential address; (iv) his postal address (if different); - (v) a description of his occupation (other than insurance surveying); (vi) the name of his employer; (vii) the class of surveyors for which renewal of registration is sought[; and] 43 (viii) [such other information as may be specified by the Commission in writing.] 44 (3) Every application made under sub-rule (1) or (2) shall be accompanied by a declaration by the applicant stating that — (a) the information presented in accordance with sub-rule (1) or (2), as the case may be, is complete and correct; (b) the applicant has complied with the requirements of the Ordinance and these rules concerning the required qualifications of an authorized surveying officer; (c) the applicant is not appointed as an insurance agent of an insurance company carrying on business in Pakistan; (d) the applicant is not an employee of an insurance company carrying on business in Pakistan; -

40 The word “and” omitted by S.R.O. 658(I)/2018 dated 28 th May, 2018.
41 Semicolon and the word “and” inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018 42 Rule 46(1)(ix) inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018 43 Semicolon and the word “and” inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018 44 Rule 46(2)(viii) inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018

(e) the applicant undertakes to comply, and in the case of an existing authorised surveying officer declares that he has during the previous twelve months complied with the provisions of the Ordinance and rules concerning the conduct of an authorised surveying officer; and – (f) the applicant is not disqualified from acting as an authorised surveying officer by virtue of — (i) being a minor; (ii) having been found of unsound mind by a Court of competent jurisdiction; (iii) having been found guilty, within five years preceding the date of the declaration, of criminal misappropriation or criminal breach of trust, cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction; (iv) having served any custodial sentence imposed by a Court of competent jurisdiction, ending within five years preceding the date of the declaration; (v) having been found guilty by a Court of competent jurisdiction of any offence involving insurance; or (vi) having been otherwise declared as disqualified by the Insurance Tribunal, other than for a term which had expired prior to the date of the declaration. (4) An application and declaration required under this rule shall be made in writing and the declaration shall be signed by the applicant in the presence of a witness who shall be a natural person, not a related party of the applicant, and who shall also sign the declaration as witness. (5) An authorized surveying officer shall inform the Commission of any change in the details required to be presented under sub-rule (1) or (2) within three months of that change having effect, such information shall be in written form and signed by the authorised surveying officer in the presence of a witness who shall be a natural person, not a related party of the authorized surveying officer and who shall also sign the declaration as witness. (6) An application for grant of an Authorized Surveying Officers’ new licence or renewal of licence will be accompanied by a fee of Rs. 5,000/- (five thousand rupees) per class. [(7) An application for grant of an Authorized Surveying Officers’ new licence will be accompanied by a fee of Rs. 5,000/- (rupees five thousand) per main class, which shall be refunded if the application is not granted. (8) An application for renewal of an Authorized Surveying Officers’ licence shall be accompanied by a fee of Rs. 2,000/- per main class (rupees two thousand), which shall be refunded if the application is not granted. Provided that on the commencement date of sub-rule (7) and (8), the provision of sub-rule (6) shall lapse, and where an applicant for fresh licence or renewal of licence as an authorised surveying officer, paid the licence fee to the Commission in accordance with sub-rule (6) above, the Commission shall recalculate the fee as imposed through sub-rule (7) or sub-rule (8), as the case may be, and shall refund the excess amount of fee paid by the authorised surveying officer.

(9) Where an application for renewal of a licence has been made to the Commission under sub-rule (2) above, but has not been decided by the Commission prior to the expiry date, the licence of the authorised surveying officer shall continue to be valid until the application for renewal has been decided by the Commission. Provided that the Commission shall decide the renewal of registration of the authorised surveying officer within a period of not more than thirty days from the expiry date of its licence.]
47. Surveys and reports of insurance surveyors.- (1) Pursuant to clause (d) of subsection (3) of
section 112 the report of an insurance surveyor shall be subject to the conditions as laid down in sub
rule (2).
(2) Every report given by an insurance surveyor shall be signed by a natural person who is, at the date of the report, registered as an authorised surveying officer for the class of insurance surveyors to which the loss being surveyed relates and authorized surveying officer and the insurance surveyor be jointly and severally responsible for the report, and shall include the following, namely: — (a) a description of the property or interest which constitutes the subject matter of the survey report, sufficient to identify the property or interest; (b) the terms of reference given to the insurance surveyor by the person engaging him; (c) any instructions given to the insurance surveyor by the person engaging him, as to the facts to be assumed or other assumptions to be made by the insurance surveyor; (d) a description of the procedures carried out by the insurance surveyor in the conduct of the survey; (e) the opinion of the insurance surveyor on the matters contained in the term of reference; and (f) a declaration that neither the insurance surveyor, nor any director, employee, associate or partner of the insurance surveyor, nor any related party of any of those persons, has any interest directly or indirectly by way of insurance, ownership, agency commission, repairs, disposal of salvage, or in any other way whatsoever, other than as an insurance surveyor in the property or interest which constitutes the subject matter of the survey report. (3) Every survey conducted by, and report given by, an insurance surveyor shall comply with the relevant professional standards of any professional body of which the insurance surveyor is a member. (4) Every survey conducted by, and report given by, an insurance surveyor shall be conducted and given with due diligence and skill, and in good faith and the report shall be finalized as early as possible but within the period of ninety days:
Provided that where claim, in motor (to include own damage and third party liability) and marine cargo, hull and aviation and miscellaneous business, amount exceeds rupees one million, and in fire and allied perils and engineering classes amount exceeds rupees ten million, and final report has not been submitted within the 90 days of his appointment, the insurance surveyor shall submit preliminary report to the Commission before expiry of the 90 days, mentioning therein the reasons for delay, if any. In case no preliminary report is submitted

45 Inserted by S.R.O. 658(I)/2018 dated 28 th May, 2018.

within the 90 days in the first instance, he will be required to submit status report thereafter every 90 days. (5) If the Commission has reason to believe that a survey performed has not been performed with due diligence or skill, or in good faith, or that it otherwise does not comply with the conditions of this rule, such that the report does not present a fair opinion on the matters contained in the terms of reference, the Commission may direct the insurer to arrange an additional survey of the subject matter of the survey report to be performed by one or more licensed insurance surveyors who shall be approved by the Commission. (6) An additional survey under sub-rule (5) shall be performed at the expense of the insurer and a copy of the report on the additional survey shall be provided to the Commission.
48. Insurance of interests in Pakistan .—(1) For the purposes of subsection (1) of section 165 of
the Ordinance, no person shall insure outside Pakistan any risk or part thereof in respect of any property or interest which is located in Pakistan at the time the insurance is effected. (2) The Federal Government may grant exemption to any person from the requirements of sub-rule (1):
(a) Where any risk cannot be insured suitably in Pakistan; or (b) Where there are reasons of exceptional nature for granting exemption. (3) The exemption under sub-rule (2) shall be for such property or interests, and for such period as the Federal Government may deem fit.
49. Prescribed fee for copying and for provision of duplicate documents.- (1) This rule shall apply
to all provisions in the Ordinance pursuant to which a person is entitled to charge a prescribed fee for the provision of a document, or a duplicate document, or is entitled to charge a fee for the grant of permission to make copies. (2) The fee shall be determined by the person entitled to charge the fee but shall not exceed the sum of:
(a) twenty-five rupees for each page of a document of which one copy is made; or (b) where a document or a duplicate document is provided, twenty-five rupees for each page of the document or duplicate document. (3) Where multiple copies are made or provided of one document or of one page of a document, the fee for second and subsequent copies shall not exceed one half of the fee as set out in sub rule (2). (4) For the purposes of this rule a page which is printed on both sides shall be counted as two pages.
50. Reporting by insurance brokers.- (1) Each year an insurance broker shall be required to
provide to the Commission, as at the preceding 31 st December, or in respect of the year then ended – (a) a balance sheet of the company; (b) a profit and loss account of the company;

(c) a certificate from the auditors of the insurance broker certifying the amount of net equity maintained by the insurance broker as on the reporting date; (d) a statement of the insurance premium written through the broker, distinguishing between premium in respect of which the broker had an agency agreement with the insurer, subdivided by classes of insurance business, and premium in respect of which the broker did not have an agency agreement with the insurer; subdivided by classes of insurance business; and (e) a statement of the commission or brokerage, by whatever name called, receivable by the broker, subdivided by classes of insurance business, distinguishing between commission earned on premium in respect of which the broker had an agency agreement with the insurer, and commission earned on premium in respect of which the broker did not have an agency agreement with the insurer. (2) The Commission may, on the application of a broker, approve a date other than the 31 st December, for the date as at which the statements shall be required to be made up for the purposes of sub-rule (1). (3) The statements referred to in this rule shall be provided to the Commission not later than four months after the date to which they are made up.
51. Misrepresentation by life insurers.- (1) Subject to sub-rule (2), no life insurer shall –
(a) make, issue, circulate or cause to be made, issued or circulated, any estimate, illustration, circular or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the bonuses, shareholders’ dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the bonuses, shareholders’ dividends or share of surplus previously paid on similar policies or make any misleading representation or any misrepresentation as to the financial condition of any policyholder insured in any company for the purpose of inducing or tending to induce such policyholder to enter into, allow to lapse, forfeit or surrender his insurance policy; or (b) make, publish, disseminate, circulate or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated or placed before the public in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster or in the electronic media or in any other manner an advertisement, announcement or statement with respect to the business of insurance, or the financial position of any insurer or with respect to any person in the conduct of his insurance business, which is false, untrue, deceptive, misleading or calculated to injure any person engaged in the business of insurance. (2) Nothing contained in sub-rule (1) shall prevent an insurer from publishing any return in a form in which it has been furnished to the Commission or a true and accurate abstract from such returns.
52. Power of the Commission to provide for matters in respect of promotional material and
policy documentation.- (1) The Commission may, by notification in the official Gazette, not inconsistent with the provisions of the Ordinance, provide for matters in relation to any promotional material or policy documentation issued by a life insurer, including but not limited to the form and content of that material or documentation and the form and content of any notices which that material or documentation shall contain. (2) A notification issued under sub-rule (1) shall have regard to the information needs of policyholders and their capability of understanding information provided to them.

(3) For the purposes of this rule,-
(a) “promotional material” means any document or advertisement that contains statements that may affect a person’s decision to enter into, vary or continue a life policy, or a particular type of life policy; and (b) “policy documentation” includes contracts, endorsements and proposal documentation.
53. Power to require withdrawal of materials used for communication.- The Commission may
require any person carrying on such activities in Pakistan to withdraw any written, electronic or other material issued by it for mass communication or communication with a policyholder or prospective policyholder including a policy or proposal document – (a) if it includes any matter which is, in the opinion of the Commission, likely to mislead a policyholder or a prospective policyholder; or (b) if it is, in the opinion of the Commission, misleading by omission, ambiguous or couched in obscure language.
54. Liability for insurance advice.- Where insurance advice is given in writing to a person by an
insurer, an agent of an insurer or an insurance broker, that advice shall have regard to the circumstances of the person, and where that advice is not reasonable having regard to those circumstances, and where it is reasonable for the person receiving the advice to rely upon it, the person receiving the advice shall be entitled to recover (in the case of an insurer or an agent of an insurer), from the insurer or broker, as the case may be, any loss or damage directly suffered by him as a result of following or acting upon the advice in good faith. The burden of proving that due regard was given to the circumstances of the policyholder and that the advice was reasonable under the circumstances shall rest with the insurer or broker.
55. Policyholder’s duty of disclosure.- (1) A proposal form provided to a prospective policyholder
shall carry or contain a notice of his duty of disclosure stating the consequences of non-disclosure. (2) If an insurer fails to comply with the provisions of sub-rule (1), the insurer shall not be able to rely upon non-disclosure by the policyholder (other than fraudulent non-disclosure) as grounds for refusing to pay a claim or for diminishing a claim which is otherwise payable.
56. Duty of life insurer to provide certain information.- (1) A life insurer shall provide to an
intending policyholder under a policy the terms of which or the provisions of the Ordinance provide for it to acquire a surrender value, at or before the commencement of the policy, a clear statement of the expected surrender values on the policy at one year from the commencement of the policy and at subsequent dates at an interval of one year, for a period of not less than ten years or if earlier until maturity, and the assumptions on which those expected surrender values are based. (2) A life insurer shall provide to the intending policyholder a clear statement of the options available to the policyholder should the policy holder not maintain premium payments:
Provided that this statement shall not be required in respect of a life insurance policy under the terms of which the premium is payable once only.

(3) The Commission may, by notification in the official Gazette, not inconsistent with the provisions of the Ordinance, provide for any matters relating to the form and content of the notices provided to an intending policyholder under this rule, including but not limited to – (a) the assumed investment earnings rates and in the case of participating policies bonus crediting rates on the basis of which surrender values included in such notices are calculated; (b) the assumed expense rates on the basis of which surrender values included in such notices are calculated; and (c) the inclusion in such notices of words in a form as required by such notification.
57. Unit valuations.- (1) Subject to sub-rule (2), a life insurer offering investment-linked policies
shall publish, in a newspaper having general circulation, not more than ten days following the last day of each month, the values attributed by it to units for the purpose of redemption of units by policyholders at close of business on the last working day of that month. (2) Where a life insurer offering investment-linked policies publishes the values attributed by it to units for the purpose of redemption of units by policyholders more frequently than is required by sub-rule (1), that insurer shall not be required to publish the information as at close of business on the last working day of a month provided that – (a) information referred to in sub-rule (1), made up as at close of business on a date not more than five days prior to the last working day of that month or not more than five days after the last working day of that month, is published in a newspaper having general circulation; and (b) the information is published not more than ten days following the date as at which it is made up.
58. Insurance policy not to be issued without receipt of premium.- (1) Save as provided under
sub-rule (2), (3) and (4) below, no insurance policy shall be issued where premium has not been received by the insurer. (2) An insurer may issue a cover note prior to the receipt of premium, in order to enable the intending policyholder to review the details and scope of coverage being offered. g Provided that the cover note should not be for a period exceeding seven days in the case of motor business and beyond thirty days in all other cases and must be replaced with an insurance policy before expiry of such cover note, subject to receipt of premium by the insurer. (3) Notwithstanding the above, an insurance policy may be issued where the premium has been mutually agreed to be paid in installments and the first such installment has been duly received by the insurer. (4) The policy schedule must clearly specify the number of agreed installments and their due dates, along with a stipulation that cover under the policy shall stand suspended in case any instalment is not received within the scheduled due date thereof. (5) The provision of this rule shall apply in respect of direct non-life insurance contracts only.
59. Endorsements.- No endorsement to a policy, which has retrospective effect, may be made
without the express consent in writing of the policyholder.

60. Effect of averaging provision in domestic insurance policy.- (1) Subject to sub-rule (2), the
    operation of an averaging provision in a domestic insurance policy shall be limited to cases in which the amount of the sum insured is less than eighty per cent of the value of the property insured at the time of taking out the policy, and to cases in which the amount of the loss is greater than five per cent of the sum insured. The value of the loss to be paid shall be determined according to a sliding scale such that one hundred per cent of the loss is payable when the sum insured is eighty per cent of the value of the property, and the amount of the loss payable is reduced by one and a quarter per cent for each percentage point below eighty per cent that the sum insured bears to the value of the property insured at the time of taking out the policy. (2) Nothing contained in sub-rule (1), shall prevent an insurer from inserting an averaging clause, which is more favourable to the policyholder.
61. Insurer’s duties when claim denied.- (1) An insurer shall, whenever a claim is denied, provide
    the policyholder with a written statement of reasons for denial of the claim. (2) Where refusal to pay a claim, in whole or in part, is based, in whole or in part, upon a survey report, the policyholder shall be provided, at his option, with a copy of the survey report.
62. Free look period for life insurance.- (1) A life insurance policy, not being a group life insurance
    policy, and the term of which is for more than one year, shall be liable to be cancelled at the option of the policyholder within fourteen days of commencement, and if the policyholder cancels the policy within that time all amounts paid by way of premium shall be refunded without any deduction for management expenses, other than expenses incurred in connection with the medical examination of any person insured under the policy. (2) No person shall offer any inducement to a person for the purposes of procuring that person to cancel his policy in accordance with this rule. [62A. Allowable classes of business.– (1) For the purposes of sub-section (6) of section 4 of the Ordinance and rule 5 of these Rules, a life digital-only insurer is allowed to transact class 1 and class 4 as stated in sub-section (1) of section 4 of the Ordinance subject to the requirement that digital-only insurance will only cover the individuals and/or natural persons and not the legal persons or any person who is not a natural person. (2) For the purposes of sub-section (6) of section 4 of the Ordinance and rule 5 of these Rules, a non￾life digital-only insurer may transact class 1, 2 7, 8 and class 9 as provided in sub-section (3) of section 4 of the Ordinance subject to the requirement that digital-only insurance will only cover the individuals and/or natural persons and not the legal persons or any person which is not a natural person:
    Provided that life and non-life digital-only insurer may sell insurance to legal person for covering the risks of individuals associated with it such as in case of group life insurance or group health insurance or such similar cases where beneficiary of the insurance policy is natural person and not the legal person. (3) The maximum exposure of a digital-only insurer under a single policy issued by it shall be 5% of the shareholders’ equity of the digital-only insurer plus the related reinsurance available to it under the said policy:

Provided that for the purposes of this sub-rule, the shareholders’ equity shall be taken as per the latest available audited accounts of the digital-only insurer on the date of issuance of the policy. Provided further that the Commission may revise the percentage of maximum exposure provided in this sub-rule through notification in the official Gazette.

(4) The life digital-only insurer will underwrite protection products only as per classes envisaged in sub￾rule (1). (5) Without prejudice to the requirements of sub-rule (4) above, the Commission may, on application in writing, allow a life digital-only insurer to underwrite life insurance saving products, subject to compliance with the following requirements:
(a) The life digital only insurer shall have minimum paid up capital of at least Rs. 500 million; (b) The life digital only insurer shall maintain net admissible assets in its shareholders fund in accordance with the requirement of sub-clause (i) of clause (a) of sub-rule (1) of rule 14 of these rules; (c) The life digital only insurer shall demonstrate technological and operational readiness before the launch of life insurance saving products substantially in accordance with the requirements of rule 62C of these rules. (d) For all saving products, the life digital only insurer, shall demonstrate its readiness for compliance with the following:
(i) provision of policy illustration to the policyholder in accordance with the requirements of the Directive for Life Insurance and Family Takaful Illustrations, 2016; (ii) pre and post-sale disclosure and communication to be made with the policyholders along with timelines thereof; (iii) acknowledgment of receipt of policy documentation and terms and conditions by the insurance policyholder; (e) Where the life digital only insurer intends to issue unit linked contracts, it shall demonstrate its readiness for compliance with the following:
(i) communication of disclosure requirements under rule 6 of the Unit Linked Product and Fund Rules, 2015 to the policyholder through digital modes; (ii) undertaking of need analysis and unit linked fund suitability analysis under rule 7 and rule 7A of the Unit Linked Product and Fund Rules, 2015 through digital modes; and (iii) the minimum allocations proposed to be made into the investment account of the insurance policyholders. (6) The products underwritten by the microinsurer will be subject to the sum insured limits prescribed under SEC (Microinsurance) Rules, 2014 and as revised from time to time.

(7) Subject to meeting the minimum paid-up capital, solvency, and other applicable regulatory requirements applicable to life insurer and non-life insurer, as the case may be, the Commission may, on application by the digital-only insurer and/ or microinsurer, remove the restriction on classes of business to be underwritten and the requirements of net retained exposure by the digital-only insurer and/ or microinsurer, as the case may be. 62B. Digital-only Insurer to have adequate Reinsurance Arrangements. – (1) The digital-only insurer will maintain adequate reinsurance arrangements having regard to its exposure, nature and volume of business and risk portfolio, in accordance with the provisions of Section 41 of the Ordinance. (2) Subject to the requirements of section 42 of the Ordinance, the digital-only insurer shall make reinsurance arrangements with insurers or reinsurers registered under the Ordinance. Provided that where it is not practicable to comply with the requirements of sub-rule (2) above, the digital-only insurer shall along with its reinsurance arrangements submit reasons for its inability to comply with sub-rule (2) along with supporting documentary evidence thereof. 62C. Digital-only insurer to demonstrate technological and / or operational readiness before commencement of operations.- (1) The Commission may require the applicant desirous to obtain registration as digital-only insurer to present the system prototype demonstration in operational environment during the registration process to assess the technology and operational readiness level of the digital-only insurer. (2) The digital-only insurer will develop digital claim lodgment and payment process since inception of operations, and will develop system to provide updates to the policyholder about the stage of claims processing. The digital-only insurer will demonstrate the implementation plan for complete transition to digitalized claims processing comprising of claim intimation, claims assessment and payment. (3) The Commission may give directions to the applicant desirous to obtain registration as digital-only insurer to make such modifications in its technology, systems, products, solutions, and/ or business model as the Commission may deem fit. (4) The Commission may conduct onsite inspection of applicant desirous to obtain registration as digital-only insurer or may require it to produce such documents, information, or reports, verified by independent experts for assessment of its technological or operational and/ or commercial readiness, as it may deem fit. (5) The Commission may levy certain conditions at the time of registration such as number or volume of transactions, number or nature of customers to be enrolled, limits on premium and / or overall business volume or such other elements, to be complied with during specified period of time. 62D. Competence and Capability of Digital-only Insurer.- (1) Without prejudice to anything stated in the Insurance Companies
(Sound and Prudent Management) Regulations, 2012, the digital-only insurer should have at least two directors on its Board with at least five years’ experience in digital financial services, or Insurtech or fintech or such other relevant field preferably at senior level. (2) The digital-only insurer will ensure the availability of technology proficient human resource necessary for the conduct of business operations on digital basis with least involvement of non-tech mode for any aspect of core business.

62E. Digital-only insurer to file products with Commission.- (1) Along with the product details submitted in compliance of Section 13 of the Ordinance, the life digital-only insurer is required to submit, in respect of each product, break-up of profit margins and expenses, associated terms and conditions, benefits, exclusions, expected claim ratios, with special focus on communication of terms and conditions to the policyholders through digital mode, offer and acceptance mechanism, customer enrolment process, premium collection mode, claim lodgment options available to policyholder, claim payment mechanism, and any other aspect related to the insurance policy proposed to be distributed by the life digital-only insurer. (2) The non-life digital-only insurer is required to submit to the Commission, on semi-annual basis, details of products launched in last six months envisaging product features, rates, benefits, pricing mechanism and all contents specified in (1) above. (3) The submission made under sub-rule (1) and (2) will be accompanied by the assessment of whether the proposed insurance product has and is likely to provide value to the policyholders for whom it is designed, whether the product is sustainable, and whether the terms of the contract are fair to insured persons along with the basis on which it has assessed the proposed insurance product as meeting the criteria. (4) The digital-only insurer is required to ensure that anything in the insurance product contents or the promotional material is not misleading or deceptive. (5) The Commission may, as it may deem fit, require the digital-only insurer to make such changes in the particulars submitted as per sub-rule (1), (2) and (3). 62F. Technological Capability of Digital-only insurer.- (1) The digital-only insurer will develop adequate technological capability to conduct the operations digitally in the areas of customer engagement, customer enrolment, distribution, administration, servicing, claim processing and/ or any other aspect of core operations. This may include inter alia the necessary resources to carry out the business operations, the availability of back-up system for business continuity planning and disaster recovery and arrangements to protect the confidentiality of policyholder data. (2) The digital-only insurer will make available its technology systems/ platforms along with the details of applications and/ or algorithms used in its business operations, whether proprietary or outsourced, for review or inspection of the Commission, as may be required by the Commission. (3) The digital-only insurer will comply with the SEC Guidelines on Cybersecurity for Insurance Sector, 2020, and will formulate cybersecurity framework in accordance with the guidance given in the said Guidelines and align its risk management framework with the cybersecurity framework. 62G. Disclosures and Business Conduct Requirements.- (1) The digital-only insurer will ensure that the key facts relating to
insurance policy such as risk insured, sum insured, policy benefits, premium, free look period, period of coverage and any other material fact, are communicated to the prospective policyholder while making the sales pitch before the offer to insurance contract is made. The detailed terms and conditions may be communicated to the policyholder after issuance of insurance policy and the onus of such communication as stated in this sub-rule lies on digital-only insurer. (2) The digital-only insurer will provide evidence of insurance cover promptly after inception of insurance policy. (3) The digital-only insurer will obtain necessary information that forms part of proposal form and the beneficiary information including name, CNIC/ passport number or another national identity number

and relationship of policyholder with the beneficiary. The insurer will disclose the risk of refusal of claim payment due to non-disclosure of medical or other material information in the proposal form. (4) In case of loyalty insurance products where policyholders are automatically enrolled, the insurance policy summary envisaging benefits, period of coverage, and claim notifying process will be communicated to the policyholder/ insured person. (5) The digital-only insurer will take all reasonable steps possible to ensure that potential policyholder is able to take informed decision about the proposed insurance policy. Where intermediaries’ services are used, the digital-only will ensure that intermediaries are taking such steps which enable the potential policyholder to take informed decision about the proposed insurance policy. (6) The digital-only insurer may provide the policyholder with a copy of the insurance policy in electronic form that enables reproduction and storing. (7) The digital-only insurer may provide post sale servicing to the policyholder through electronic means, in respect of insurance policies issued by it. (8) The information about claim lodging process and complaint filing forums will be provided to the policyholder along with the insurance terms and conditions. The digital-only insurer will be first resort for complaint resolution. (9) The digital-only insurer will seek to enhance inclusive insurance with special focus on section 87 of the Ordinance so as to not create undue discrimination against certain individuals. 62H. Requirements related to AML/ CFT for digital-only insurance.- (1) The digital-only insurer will comply with the requirements of SEC (AML/ CFT) Regulations, 2020, and as amended from time to time, including but not limited to Customer Due Diligence (CDD), Enhanced Due Diligence (EDD) where applicable, ongoing transaction monitoring, filing of Suspicious Transactions Report (STR), screening of customer database against proscribed persons in accordance with TFS obligations under the United Nations (Security Council) Act 1948 and/or Anti-Terrorism Act 1997, as stated in the SEC (AML/ CFT) Regulations, 2020. (2) The digital-only insurer may obtain and store the documents and information as required in the SEC (AML/ CFT) Regulations, 2020 digitally. (3) The digital-only insurer may obtain information directly from customer or through another source such as entity through which customer database is accessed, for example, mobile network operator (MNO) or microfinance bank in case of branchless banking account holder or such other entity with which customer information is available. (4) The information of source of income will suffice for the purpose of identification of source of funds required under SEC (AML/ CFT) Regulations, 2020 in respect of policies issued by the digital-only insurer and microinsurer subject to limits applicable under these Rules and SEC (Microinsurance) Rules, 2014 as the case may be.
(6) To counter the risk of identity theft, the digital-only insurers are encouraged to verify identity of customer through two-factor authorization, mobile sim ownership verification (CNIC – MSISDN Pairing Authentication) through Pakistan Mobile Network Database, and/ or conduct video call interview with prospective customer at the time of inception of insurance policy.

(7) The digital-only insurer may conduct simplified due diligence of the customer/ policyholder as per Regulation 17 of the SEC (AML/ CFT) Regulations, 2020 if it is able to rate the customer/ policyholder as low risk, and justify the decision to rate the customer/ policyholder as low risk in writing. 62I. Digital-only Insurer to be responsible for Policyholder Data Security and Confidentiality.- (1) The digital-only insurer will ensure fair usage of policyholder information, which it has acquired during the course of its business and may include identity information, financial information, medical/ health related details, among others, and will be responsible for accuracy, safety and confidentiality of policyholder data. (2) The policyholder information will only be used for the purpose of provision of insurance services to the policyholders and the data will not be shared with any other party except in instances where the applicable regulatory requirements so require. (3) The insurers will only collect and share the information which is necessary to provide insurance to the policyholder or potential policyholder through the technology-based platforms and not any additional information without the express and informed consent of the policyholder or potential policyholder. 62J. Free look period and accuracy of information.- (1) All life and non-life insurance policies offered by digital-only insurer, except the group insurance policies, will be subject to free look period of at least fourteen (14) days starting from date of issuance of policy provided and where the policy is cancelled by the policyholder within the free look period, the premium will be refunded to the policyholder in the manner as stipulated in Rule 62 of these Rules. (2) The disclosure about free look period will be part of key facts required to be communicated to the potential policyholder before the sale of insurance and will also be communicated to the policyholder after the issuance of policy as part of policy terms and conditions and any other medium which is most likely to be viewed by policyholder such as in-app notifications or pop-up messages on opening application/ website/ email. (3) The digital-only insurer will be responsible for accuracy of information presented to the policyholders or potential policyholders through its customer interface and will be liable for any loss caused to the policyholders due to incorrect, inconsistent or incomplete information through its digital customer interface. (4) The digital-only insurer will ensure that the promotional/ marketing material it uses, whether on its own or through intermediaries or third parties, is accurate, clear, fair and not misleading. 62K. Use of intermediaries or third parties’ services in Distribution and Insurance Policy Administration.- The digital-only insurer will only use services of insurance intermediaries, or third parties through written agreements, to the extent of digital distribution and/ or
policy administration through digital means and will not use non-digital modes of insurance distribution through any intermediary, third party or otherwise. 62L. Place of business and Customer Support. – (1) The digital-only insurer will establish a physical place of business in Pakistan and will keep the Commission updated about the address of its place of business. (2) The digital-only insurer will maintain a round-the-clock customer support mechanism, preferably through voice-call/ telephonic helpline and will communicate the details of such helpline to policyholders along with insurance policy.

62M. Electronic Communication.- (1) The digital-only insurer may make all communication with the policyholder using electronic/ digital means while ensuring that the policyholder has received the same. (2) The communication between the digital-only insurer and the Commission, including submission of documents, reporting and filing as required under the applicable provisions of the Ordinance and Rules and Regulations issued thereunder, may be made electronically/ digitally unless otherwise specified explicitly on case to case basis. 62N. Submission returns by digital-only insurer.- (1) A digital-only insurer shall, in addition to the returns required to be submitted under the Ordinance and these Rules, shall also submit the “Statement of Solvency”, as provided in Annexure – II to these Rules, on a quarterly basis along with the returns required to be submitted under sub-section (2) of section 46 of the Ordinance. (2) The quarterly returns of a life digital-only insurer shall be accompanied by a certificate from its appointed actuary deliberating on the adequacy of capital of the life digital-only insurer and its solvency position. (3) The annual as well as quarterly returns of a non-life digital-only insurer shall be accompanied by a certificate from an actuary deliberating on the adequacy of capital of the non-life digital-only insurer and its solvency position. (4) The Commission may at its own expense carry out actuarial investigation of a digital only insurer, from an actuary appointed by the Commission for such purpose.]
63. Repeal.- The Insurance Rules, 2002 and the Securities and Exchange Commission of Pakistan
(Insurance) Rules, 2002 are hereby repealed.
64. Savings.- Save as otherwise specifically provided, nothing in these Rules, or any repeal effected
thereby, shall affect or be deemed to affect anything done, action taken, investigation or proceedings commenced, order, appointment, conveyance, mortgage deed, document or agreement made, fee directed, resolution passed, direction given, proceedings taken or instrument executed or issued, under or in pursuance of any rules or notifications repealed by these Rules and any such thing, action, investigation, proceedings, order, appointment, conveyance, mortgage deed, document, agreement, fee, resolution, direction, proceedings or instrument shall if in force at the coming into force of these Rules and not inconsistent with any of the provisions of these Rules, continue to be in force, and have effect as if it were respectively done, taken, commenced, made, directed, passed, given, executed or issued under these Rules. __________________________________________________________________________________

46 Inserted by S.R.O. 1513(I)/2022 dated August 16, 2022

ANNEXURE – I
[See rule 27]
FORM OF STATEMENT OF ASSETS AND LIABILITIES (LIFE) Company Name: FORM LA
Financial Year ended 31 December ...........
Balance Sheet
Figures in Rs 000
Shareholders Statutory Fund Aggregate Aggregate Fund Ordinary life Ordinary life Capital Pension fund Accident & current prior (investment redemption health year year Share Capital and Reserves linked) Authorised Share Capital Issued, subscribed and paid up Share Capital Accumulated Surplus/(Deficit) Other Reserves (describe) Less: Capital contributed by shareholders fund Net Shareholders' Equity Balance of statutory fund (including policyholder liabilities Rs. Prior year: Rs. ) Deferred Liabilities Deferred Taxation Staff Retirement Benefits Others Creditors and Accruals Outstanding claims (including IBNR) Premiums Received in Advance Amounts due to other insurers/reinsurers Amounts due to Agents Accrued Expenses Inter-Fund Balances Taxation - Provision less payments Other Creditors and Accruals (describe) Borrowings Short term running finance Loans received from banks Other loans Other debt security issued Other liabilities Other liabilities (please specify) TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES CONTINGENCIES AND COMMITMENTS (if applicable) Chief Executive Officer Director Director Chairman

ANNEXURE – I
[See rule 27]
FORM OF STATEMENT OF ASSETS AND LIABILITIES (LIFE) Company Name: FORM LA
Financial Year ended 31 December ...........
Balance Sheet
Figures in Rs 000
Shareholders Statutory Fund Aggregate Aggregate Fund Ordinary life Ordinary life Capital Pension fund Accident & current prior (investment redemption health year year Cash and Bank Deposits linked) Cash and others Current and other accounts Deposits maturing within 12 months Fixed Deposits maturing after 12 months Loans Secured Against Life Insurance Policies Loans Secured Against other assets To employees To agents Others Unsecured Loans To employees or agents Others Investment Property Investment in subsidiaries and associates Fixed Income Securities Listed Equities Unlisted Equities Other Investments Government Securities Other Fixed Income Securities Listed Equities Unlisted Equities Mutual Funds Others (describe) Less: Provision for diminution in value Deferred Taxation Preliminary and Deferred Expenses Current Assets - Others Premiums due but unpaid Amounts due from other insurers/ reinsurers Agents Balances Investment Income Due but Outstanding Investment Income Accrued Taxation - payments less provision Inter-Fund Balances Prepayments Sundry receivables Others (please specify) Fixed Assets Tangible & Intangible Land and Builldings Furniture, Fixtures and Office Equipment Motor Vehicles Capital Work in Progress Intangibles (Please specify) TOTAL ASSETS Chief Executive Officer Director Director Chairman

Annexure II
[See rules 19 and 24(1)]
STATEMENTS REQUIRED TO BE
FILED BY LIFE AND NON-LIFE INSURERS
As required by rules 19 and 24(1) read with sub-section (1) and (2) of the Section 46 of the Insurance Ordinance, 2000 following statements are required to be filed by the life and non-life insurers. A- STATEMENTS FOR LIFE INSURERS (1) Regulatory Returns: The Regulatory Returns shall consist of the following statements which shall be submitted according to the annexed Forms:

• Balance Sheet (Form LA), which shall be deemed to constitute the “Statement of Assets and
  Liabilities” required by section 46(1)(a)(i) of the Ordinance.

• Profit and Loss Account (Form LB), which shall be deemed to constitute the “statement of
  profits and losses for the shareholders’ fund” required by section 46(1)(a)(ii) of the Ordinance.

• Statement of Cash Flows (Form LC) required under section 46(1)(a)(iii) of the Ordinance.

• Revenue Account (Form LD) required under section 46(1)(a)(iv) of the Ordinance.

• Statement of Premiums (Form LE) required under section 46(1)(a)(v) of the Ordinance.

• Statement of Claims (Form LF) required under section 46(1)(a)(vi) of the Ordinance.

• Statement of Expenses (Form LG) required under section 46(1)(a)(vii) of the Ordinance.

• Statement of Investment Income (Form LH) required under section 46(1)(a)(viii) of the
  Ordinance.

• Statement of Solvency (Form LI) which is hereby prescribed under section 46(1)(a)(ix) of the
  Ordinance.

• Classified Summary of Assets in Pakistan (Form LJ) which is hereby prescribed under section
  46(1)(a)(ix) of the Ordinance.

• Statement of Maximum Management Expense Limits for Life Insurers.

• Statement of itemized computation of Bancassurance acquisition cost.
  (2) Published Financial Statements: The Published Financial Statements shall consist of the following statements which shall be submitted according to the annexed Forms:

• Statement of Financial Position.

• Statement of Comprehensive Income.

• Statement of Cash Flows.

• Statement of Changes in Equity.
  B- STATEMENTS FOR NON-LIFE INSURERS
  (1) Regulatory Returns: The Regulatory Returns shall consist of the following statements which shall be submitted according to the annexed Forms:

• Balance Sheet (Form GA), which shall be deemed to constitute the “Statement of Assets and
  Liabilities” required under section 46(1)(b)(i) of the Ordinance.

• Profit and Loss Account (Form GB), which shall be deemed to constitute the “statement of
  profits and losses” required under section 46(1)(b)(ii) of the Ordinance.

• Statement of Cash Flows (Form GC), required under section 46(1)(b)(iii) of the Ordinance.

• Statement of Premiums (Form GD), required under section 46(1)(b)(iv) of the Ordinance.

• Statement of Claims (Form GE), required under section 46(1)(b)(v) of the Ordinance.

• Statement of Expenses (Form GF), required under section 46(1)(b)(vi) of the Ordinance.

• Statement of Investment Income (Form GG), required under section 46(1)(b)(vii) of the
  Ordinance.

• Statement of Claims Analysis (Form GH), required under section 46(1)(b)(viii) of the Ordinance.

• Statement of Exposures (Form GI), required under section 46(1)(b)(ix) of the Ordinance.

• Statement of Solvency (Form GJ), which is hereby prescribed under section 46(1)(b)(x) of the
  Ordinance.

• Classified Summary of Assets in Pakistan (Form GK), which is hereby prescribed under section
  46(1)(b)(x) of the Ordinance.
  (2) Published Financial Statements: The Published Financial Statements shall consist of the following statements which shall be submitted according to the annexed Forms:

• Statement of Financial Position.

• Statement of Comprehensive Income.

• Statement of Cash Flows.

• Statement of Changes in Equity.

FORMS OF REGULATORY RETURNS FOR LIFE INSURERS
Company Name: FORM LA
Financial Year ended 31 December ...........
Balance Sheet
Figures in Rs 000
Shareholders Statutory Fund Aggregate Aggregate Fund Ordinary life Ordinary life Capital Pension fund Accident & current prior (investment redemption health year year Share Capital and Reserves linked) Authorised Share Capital Issued, subscribed and paid up Share Capital Accumulated Surplus/(Deficit) Other Reserves (describe) Less: Capital contributed by shareholders fund Net Shareholders' Equity Balance of statutory fund (including policyholder liabilities Rs. Prior year: Rs. ) Deferred Liabilities Deferred Taxation Staff Retirement Benefits Others Creditors and Accruals Outstanding claims (including IBNR) Premiums Received in Advance Amounts due to other insurers/reinsurers Amounts due to Agents Accrued Expenses Inter-Fund Balances Taxation - Provision less payments Other Creditors and Accruals (describe) Borrowings Short term running finance Loans received from banks Other loans Other debt security issued Other liabilities Other liabilities (please specify) TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES CONTINGENCIES AND COMMITMENTS (if applicable) The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM LA
Financial Year ended 31 December ...........
Balance Sheet
Figures in Rs 000
Shareholders Statutory Fund Aggregate Aggregate Fund Ordinary life Ordinary life Capital Pension fund Accident & current prior (investment redemption health year year Cash and Bank Deposits linked) Cash and others Current and other accounts Deposits maturing within 12 months Fixed Deposits maturing after 12 months Loans Secured Against Life Insurance Policies Loans Secured Against other assets To employees To agents Others Unsecured Loans To employees or agents Others Investment Property Investment in subsidiaries and associates Fixed Income Securities Listed Equities Unlisted Equities Other Investments Government Securities Other Fixed Income Securities Listed Equities Unlisted Equities Mutual Funds Others (describe) Less: Provision for diminution in value Deferred Taxation Preliminary and Deferred Expenses Current Assets - Others Premiums due but unpaid Amounts due from other insurers/ reinsurers Agents Balances Investment Income Due but Outstanding Investment Income Accrued Taxation - payments less provision Inter-Fund Balances Prepayments Sundry receivables Others (please specify) Fixed Assets Tangible & Intangible Land and Builldings Furniture, Fixtures and Office Equipment Motor Vehicles Capital Work in Progress Intangibles (Please specify) TOTAL ASSETS The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM LB
Financial Year ended 31 December ...........
Profit and Loss Account Figures in Rs 000
Current Year Prior Year
Investment income not attributable to statutory funds Return on Government Securities Return on Other Fixed Income Securities and Deposits Amortization of discount/premium relative to par Dividend Income Gain/(Loss) on Sale of Investments Provision for Impairment in Value of investments Government Securities Other Fixed Income Securities and Deposits Equities Reversal of Provisions Total investment Income Less: Investment Related Expenses Net Investment Income Income from Rental Properties Net Rental income Net realised gains / losses on investment property Net unrealised gains / losses on investment property Other Income (please specify) Total of Investment Income, Rental Income and Other Revenues Less: Expenses not attributable to statutory funds (provide details) Add: Surplus appropriated to Shareholders' Fund from Ledger A/c C or D Profit/(Loss) before tax (and extraordinary items, if any) Extraordinary items (provide details) Profit/(Loss) before Tax and after extraordinary items Tax expense Profit/(Loss) after tax Earning per Share (Rupees) The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM LC
Financial Year ended 31 December ...........
Statement of Cash Flows Figures in Rs 000
Shareholders' Statutory Fund Aggregate Aggregate fund Ordinary life Ordinary life Capital Pension fund Accident & current prior (investment redemption health year year linked) Operating Cash Flows a) Underwriting activities Premiums received XXXXXXXX Reinsurance premiums paid XXXXXXXX Claims paid XXXXXXXX Surrenders paid XXXXXXXX Reinsurance and other recoveries received XXXXXXXX Commissions paid XXXXXXXX Commissions received XXXXXXXX Other underwriting payments, if any XXXXXXXX Other underwriting receipts, if any XXXXXXXX Net cash flow from underwriting activities 0 b) Other operating activities Income tax paid General management expenses paid Other operating payments Other operating receipts Loans advanced Loan repayments received Other payments on operating assets Other receipts in respect of operating assets Net cash flow from other operating activities 0 Total cash flow from all operating activities 0

Company Name: FORM LC
Financial Year ended 31 December ...........
Statement of Cash Flows Figures in Rs 000
Investment activities
Profit/ Return received
Dividends received
Rentals received
Payments for investments
Proceeds from disposal of investments
Fixed Capital Expenditure
Proceeds from disposal of fixed assets
Total cash flow from investing activities 0
Financing activities
Share capital received XXXXXXXX
Loans received XXXXXXXX
Loans repaid XXXXXXXX
Capital payments received by statutory funds
Capital payments repaid by statutory funds
Surplus appropriated to shareholders' fund
Dividends paid XXXXXXXX
Financial charges paid XXXXXXXX
Payments on finance leases
Total cash flow from financing activities
Net cash inflow/outflow from all activities
Cash at the beginning of the year
Cash at the end of the year

Company Name: FORM LC
Financial Year ended 31 December ...........
Statement of Cash Flows Figures in Rs 000
Reconciliation to Profit and Loss Account
Operating cash flows 0
Depreciation expense
Financial charges expense
Profit/(loss) on disposal of fixed assets
Increase/(decrease) in assets other than cash
(Increase)/decrease in liabilities other than running finance Revaluation adjustment Other adjustments (please specify) Profit or loss after taxation 0 (must agree to Profit and Loss Account (shareholders' fund only)) Definition of cash Please provide a definition of which items have been treated as cash for the purposes of this statement, and if different from Cash and Overdrafts as disclosed in the Balance Sheet, provide a reconciliation. Cash for the purposes of the Statement of Cash Flows consists of:
The annexed notes form an integral part of these accounts.
Chief Executive Officer Director Director Chairman

Company Name: FORM LD
Financial Year ended 31 December ........... Figures in Rs 000 Revenue Account Statutory Fund Aggregate Aggregate Ordinary life Ordinary life Capital Pension fund Accident & current prior (investment redemption health year year Income linked) A Premiums less Reinsurances B Policy Transfers from Other Statutory Funds C Net Rental Income from Investment Property C1 Net realised gains / losses on investment property C2 Net unrealised gains / losses on investment property D Net Investment Income E =SUM (A to D) Total Net Income Claims and Expenditure F Claims, including bonuses, net of reinsurance recoveries G Policy Transfers to Other Statutory Funds H Management Expenses less Recoveries I=SUM(F to H) Total Claims and Expenditure J=E-I Excess of Income over Claims and Expenditure K Add : Policyholder Liabilities at Beginning of Year L Less : Policyholder Liabilities at End of Year M=J+K-L Surplus/(Deficit) Before Tax Taxes chargeable to statutory funds

• Current year
• Prior year(s)
• Deferred
  N Total Taxes
  O=M-N Surplus/(Deficit) After Tax
  P Movement in policy holder liabilities
  Transfers to or from Shareholders' Fund
• Surplus appropriated to Shareholders' Fund
• Capital returned to Shareholders' Fund
• Capital contributions from Shareholders' Fund
  Q Net transfer to/from Shareholders' Fund
  R Balance of Statutory Fund at Beginning of Year S=O+P-Q+R Balance of Statutory Fund at End of Year Represented by:
  Capital contributed by shareholders' fund
  Policyholder liabilities
  Retained earnings attributable to policyholders (Ledger A/c A) Retained earnings on par business attributable to shareholders - Undistributable (Ledger A/c B) Retained earnings on par business attributable to shareholders - Distributable (Ledger A/c C) Retained earnings on other than participating business (Ledger A/c D) Other equity/reserves, if any (please specify) BALANCE OF STATUTORY FUND The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM LE
Financial Year ended 31 December ...........
Statement of Premiums Figures in Rs 000
Statutory Fund Aggregate Aggregate
Ordinary life Ordinary life Capital Pension fund Accident & current prior (investment redemption health year year Gross Premiums linked) Regular Premium Individual Policies* First year Second year renewal Subsequent year renewal Single Premium Individual Policies Group Policies with Cash Values Group Policies without Cash Values Less: Experience Refund (if any) Annuities Total Gross Premiums Less: Reinsurance Premiums Ceded On individual life first year business On individual life second year business On individual life renewal business On group policies On annuities Less: Experience refund from reinsurers (if any) Less: Reinsurance commission on risk premiums Net Premiums

• Individual policies are those underwritten on an individual basis, and includes joint life policies underwritten as such
  The annexed notes form an integral part of these accounts.
  Chief Executive Officer Director Director Chairman

Company Name: FORM LF
Financial Year ended 31 December ...........
Statement of Claims
Figures in Rs 000
Statutory Fund Aggregate Aggregate
Ordinary life Ordinary life Capital Pension fund Accident & current prior (investment redemption health year year Gross Claims linked) Claims under individual policies (including provision for claims intimated or incurred but not reported) by death 0 0 by insured event other than death 0 0 by maturity 0 0 by surrender 0 0 annuity payments 0 0 bonus in cash 0 0 Total gross individual policy claims Claims under group policies (including provision for claims intimated or incurred but not reported) by death 0 0 by insured event other than death 0 0 by maturity 0 0 by surrender 0 0 annuity payments 0 0 bonus in cash 0 0 Total gross group claims Total Gross Claims Less: Reinsurance Recoveries On individual life claims 0 0 On group life claims 0 0 On annuities 0 0 On others 0 0 Net Claims 0 The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM LG
Financial Year ended 31 December ...........
Statement of Expenses Figures in Rs. 000
Statutory Fund Aggregate Aggregate
Ordinary life Ordinary life Capital Pension fund Accident & current prior (investment redemption health year year linked) Acquisition Costs Remuneration to insurance intermediaries on individual policies:

• commission on first year premiums
• commission on renewal premiums
• commission on single premiums
• other benefits to insurance intermediaries
• salaries, allowances and other benefits
• cost of contests, conventions, etc
  Remuneration to insurance intermediaries on group policies:
• commission
• other benefits to insurance intermediaries
  Branch overheads
  Other acquisition costs
• stamp duty
• initial medical fees
• other (provide details)
  Marketing and Administration Expenses
  Salaries and other benefits
  Traveling expenses
  Advertisements & sales promotion
  Printing and stationery
  Depreciation
  Amortisation
  Rent, rates and taxes
  Legal and professional charges - business related Electricity, gas and water Entertainment Vehicle running expenses Office repairs and maintenance Appointed Actuary fees Bank charges Postages, telegrams and telephone Insurance Ombudsman expense contribution Annual Supervision fee SECP Bad and doubtful debts Miscellaneous (separately identify individual expense head if more than 5% of total) Other Expenses Legal & professional fee other than business related Auditors' remuneration - note 36.1 Subscription Registration fee Expenses on bonus issue Donations Workers Welfare Fund Misc. (Please specify separately if more than 5% of total) Gross Management Expenses Management expenses recovered from other funds Fees charged to policyholders Net management expenses The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM LH
Financial Year ended 31 December ...........
Statement of Investment Income
Figures in Rs 000
Statutory Fund Aggregate Aggregate
Ordinary life Ordinary life Capital Pension fund Accident & current prior (investment redemption health year year linked) Investment Income On Government Securities On Other Fixed Income Securities and Deposits Dividend Income Amortisation of discount/premium relative to par On Loans to Policyholders Others (please specify) Gain/(Loss) on Sale of Investments Government Securities Other Fixed Income Securities and Deposits Listed Equities and Mutual Fund Units Unlisted Equities Others (please specify) Gain/(Loss) on Revaluation of Investments Government Securities Other Fixed Income Securities and Deposits Listed Equities and Mutual Fund Units Unlisted Equities Others (please specify) (Provision)/Reversal for Impairment in Value of Investments Government Securities Other Fixed Income Securities and Deposits Listed Equities and Mutual Fund Units Unlisted Equities Others (please specify) Total Less: Investment Related Expenses 0 0 Net Investment Income 0 The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: Form LI
Financial Year ended 31 December ...........
Statement of Solvency
Shareholders' Fund Statutory Fund Statutory Fund Assets Property and equipment - - - Intangible assets - - - Investment property - - - Investments in subsidiaries and associates (applicable where equity accounting is followed) Investments - - - Equity securities Government securities - - - Debt securities - - - Term deposits Others (please specifiy) - - - Loans secured against life insurance policies - - - Insurance / reinsurance receivables - - - Other loans and receivables - - - Deferred taxation - - - Taxation - payments less provision - - - Prepayments - - - Cash & Bank - - - Total Assets (A) - - - In-admissible assets as per following clauses of section 32(2) of the Insurance Ordinance, 2000 (a) - - - (b) - - - … - - - … - - - … - - - .. - - - . - - - (U)-(i) - - - (U)-(ii) - - - (U)-(iii) - - - (v) - - - (w) - - - Total of In-admissible assets (B) - - - Total Admissible Assets (C=A-B) - - - Total Liabilities Insurance Liabilities Net of Reinsurance Recoveries - - - Retirement benefit obligations - - - Deferred taxation - - - Borrowings - - - Premium received in advance - - - Insurance / reinsurance payables - - - Other creditors and accruals - - - Taxation - provision less payments Total Liabilities (D) - - - Total Net Admissible Assets (E=C-D) - - - Minimum Solvency Requirement Shareholder's Fund - Policyholders Liabilitiy - - Solvency Margin - - Excess / Deficit in Net Admisible Assets over Minimum Requirements - - - The annexed notes form an integral part of these accounts. Chief Executive Officer Director Chairman Current year Rupees in thousand Director

Company Name: Form LJ
Financial Year ended 31 December ...........
Classified Summary of Assets in Pakistan
Cost or Book
Value Market Value Cost or Book
Value Market Value
CLASS OF ASSETS
TOTAL ASSETS - - - -
The annexed notes form an integral part of these accounts.
Chief Executive Officer Director Director Chairman Current Year Prior Year Valuation Basis Remarks Rupees in 000

Contents
Statement of financial position
Comprehensive Income statement
Statement of changes in equity
Cash flow statement
1 Legal status and nature of business
2 Basis of preparation and statement of compliance
2.1 Basis of measurement
2.2 Functional and presentation currency
2.3 Standards, interpretations and amendments effective in 2xxx
2.4 Standards, interpretations and amendments not effective at year end
3 Summary of significant accounting policies
3.1 Property and equipment
3.2 Intangible assets
3.3 Investment property
3.4 Insurance contracts
3.5 Deferred Commission expense
3.6 Policyholder liability
3.7 Reinsurance contracts held
3.8 Receivables and payables related to insurance contracts
3.9 Operating segments
3.10 Cash and cash equivalents
3.11 Revenue recognition
3.12 Investments
3.13 Offsetting of financial assets and liabilities
3.14 Provisions
3.15 Taxation
3.16 Staff retirement benefits
3.17 Leases
3.18 Impairment of assets
3.19 Dividend distribution
3.20 Management expenses
3.21 Others (to be specified)
4 Critical accounting estimates and judgments
5 Property and equipment
5.1 Operating assets
5.2 Capital work in progress
6 Intangible assets
7 Investment properties
8 Investments in subsidiaries and associates
9 Investments in equity securities - (distinguish between at fair value through profit & loss and available for sale) 10 Investments in government securities (distinguish between held to maturity and available for sale) 12 Investments in term deposits 13 Investments in mutual funds - (distinguish between at fair value through profit & loss and available for sale) 14 Insurance / Reinsurance receivables 15 Other loans and receivables 16 Deferred Taxation 17 Prepayments 18 Cash & Bank Investments in debt securities - (distinguish between at fair value through profit and loss, held to maturity and available for sale)

19 Share capital
20 Reserves
21 Surplus on revaluation of fixed assets
22 Insurance liabilities
22.1 Reported outstanding claims
22.2 Incurred but not reported claims
22.3 Investment Component of Unit Linked and Account Value Policies
22.4 Liabilities under Individual Conventional Insurance Contracts
22.5 Liabilties under Group Insurance Contracts (other than investment linked)
22.6 Other Insurance Liabilities
23 Retirement benefit obligations
24 Borrowings
24.1 Liabilities against assets subject to finance lease
25 Insurance/reinsurance payables
26 Other creditors and accruals
27 Contingency(ies) and commitment(s)
28 Net insurance premium revenue
29 Fee income
30 Investment income
31 Net realised fair value gains (losses) on financial assets 32 Net fair value gains (losses) on financial assets at fair value through profit or loss 33 Net rental income 34 Other income 35 Net insurance benefits
35.1 Claim development
36 Acquisition expenses
37 Marketing and administartion expenses
37.1 Employee benefit cost
38 Other expenses
38.1 Auditors' remuneration
39 Finance cost
40 Taxation
40.1 Relationship between tax expense and accounting profit
41 Earnings per share
42 Remuneration of directors and executives
43 Related party transactions
44 Segmental information
44.1 Revenue account by statutory fund
44.2 Segmental results by line of business
44.3 Segment statement of financial position
45 Movement in investments
46 Management of insurance risk and financial risk
46.1 Insurance risk
46.2 Financial risk
46.3 Credit risk
46.4 Capital management
47 Statement of Solvency (To be presented in the Financial Statements by Listed Concerns only) 48 Corresponding figures 49 Subsequent events - non adjusting 50 Date of authorisation for issue 51 General

STATEMENT OF FINANCIAL POSITION AS AT ………….
Note
Current year
Prior year
Assets
Property and equipment 5
Intangible assets 6 - -
Investment property 7 - -
Investments in subsidiaries and associates (applicable where equity accounting is followed) 8 - - Investments - - Equity securities 9 Government securities 10 Debt securities 11 - - Term deposits 12 - - Mutual funds 13 - - Others (please specifiy) Loans secured against life insurance policies Insurance / reinsurance receivables 14 - - Other loans and receivables 15 Deferred tax asset 16 - - Taxation - payments less provision - - Prepayments 17 Cash & Bank 18 - -

• -
  Total Assets - -
  Equity and Liabilities
  Capital and reserves attributable to Company's equity holders Ordinary share capital Share premium - - Ledger account C & D Reserves 20 - - Unappropriated profit/(Accumulated loss) - -

Total Equity - -
Surplus on Revaluation of Fixed Assets 21 - -
Liabilities
Insurance Liabilities 22
Liabilities under Investment Contracts
Retirement benefit obligations 23 - -
Deferred taxation 16 - -
Borrowings 24 - -
Premium received in advance - -
Insurance / reinsurance payables 25 - -
Other creditors and accruals 26 - -
Taxation - provision less payments
Total Liabilities - -

• -
  Total Equity and Liabilities - -
  Contingency(ies) and commitment(s) 27
  The annexed notes 1 to ….. form an integral part of these financial statements Chief Executive Officer Director Director Chairman Rupees in thousand

Note
Current
Year Prior Year

• -

Net premium revenue 28 - -
Fee income 29 - -
Investment income 30 - -
Net realised fair value gains on financial assets 31 Net fair value gains on financial assets at fair value through profit or loss 32 Net rental Income 33 - - Net realised gains / losses on investment property Net unrealised gains / losses on investment property Other income / loss 34 - - Net income - - Insurance benefits - - Recoveries from reinsurers - - Claims related expenses - - Net Insurance Benefits 35 - - Net Change in Insurance Liabilties (other than outstanding claims) - - Acquisition expenses 36 Marketing and administration expenses 37 - - Other expenses 38 - - Total Expenses - - Finance costs 39 - - Results of operating activities - - Share of (loss)/profit of associates - - Profit before tax - - Income tax expense 40 - - Profit for the year - - Other comprehensive income:

• -
  Currency translation differences (related to net investment in foreign currency) - -

Actuarial gains/(losses) on retirement benefit schemes Other comprehensive income for the year, net of tax - - Total comprehensive income for the year - - Earnings (after tax) per share - Rupees 41
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED.......
Premium Revenue
Premium ceded to reinsurers
Note: “The insurer may, instead of a single statement, provide two statements: a statement displaying components of profit or loss (separate profit and loss account) and a second statement beginning with profit or loss and displaying components of other comprehensive income (statement of comprehensive income).” The annexed notes 1 to ..... form an integral part of these financial statements Chief Executive Officer Director Director Chairman Change in unrealised gains/(losses) on available-for-sale financial assets

CASH FLOW STATEMENT FOR THE YEAR ENDED ………………
Current year
Prior year
Operating Cash flows
(a) Underwriting activities
Insurance premium received - -
Reinsurance premium paid - -
Claims paid - -
Reinsurance and other recoveries received - -
Commission paid - -
Commission received - -
Marketing and administrative expenses paid - - Others if any (please specify) - - Net cash flow from underwriting activities - - (b) Other operating activities Income tax paid - - Other operating payments - - Other operating receipts - - Loans advanced - - Loan repayments received - - Net cash flow from other operating activities - - Total cash flow from all operating activities - - Investment activities Profit/ return received - - Dividend received - - Rental received - - Payment for investments / investment properties - - Proceeds from investments / investment properties - - Fixed capital expenditure - - Proceeds from sale of property, plant and equipment - - Total cash flow from investing activities - - Financing activities Proceeds from issuance of shares - - Interest paid - - Loan received - - Loan paid - - Proceeds from issuance of convertible bond - - Payments for redemption of convertible bond Dividends paid - - Total cash flow from financing activities - - Net cash flow from all activities - - Cash and cash equivalents at beginning of year - - Cash and cash equivalents at end of year - - Reconciliation to Profit and Loss Account Operating cash flows - - Depreciation expense - - Financial charges expense - - Profit/(loss) on disposal of property, plant and equipment - - Profit/(loss) on disposal of investments / investment properties - - Rental income - - Dividend income - - Other Investment income - - Share of profit from associates - - Increase/(decrease) in assets other than cash - - (Increase)/decrease in liabilities other than borrowings - - Revaluation adjustment - - Other adjustments (please specify) - - Profit or loss after taxation - - Chief E x ec ut ive Offic er Direc t or Director Chairman Rupees in thousand

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED ……………… General reserves Others (please specify) Balance as at January 1, 200X At beginning of year - - - - - - Total comprehensive income for the year - - - - - - Others (if any, please specify) - - - - - - Dividend relating to 200X - - - - - - Balance as at December 31, 200X - - - - - - Total comprehensive income for the year Others (if any, please specify) - - - - - - Dividend relating to 200X - - - - - - Balance as at December 31, 200X - - - - - - Chief Executive Officer Director Director Chairman Unappropriated profit / (Accumulated loss) Total Share capital Capital reserves (please specify) Revenue reserves Attributable to equity holders of the Company Rupees in thousand

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED _____________ 1 LEGAL STATUS AND NATURE OF BUSINESS 2 BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE
2.1 Basis of measurement
2.2 Functional and presentation currency
2.3 Standards, interpretations and amendments effective in 2xxx
2.4
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Property and Equipment
3.2 Intangible assets
3.3 Investment property
3.4 Insurance contracts
Disclose the general terms of insurance contracts issued by the company specifying the types of contracts issued. A suggested list of possible types is given below (include relevant ones only) Also specify list of statutory funds the company has established and a brief description of the business written in each. Specify presentation and functional currency of the company. Also specify basis of accounting for transactions and balances in other currencies. The accounting policies applied in the preparation of these financial statements are set out below. Specify for each standard the details as required by the applicable IFRS. Specify for each standard the details as required by the applicable IFRS. Disclose the domicile and legal form of the company, its country of incorporation and the address of the registered office (or principal place of business, if different from the registered office); a description of the nature of company's operations and its principal activities; the name of the parent enterprise and the ultimate parent enterprise of the group, as applicable. These financial statements are prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance,1984, the Insurance Ordinance, 2000, the Insurane Rules, 2017 and the Insurance Accounting Regulations, 2017. In case requirements differ, the provisions or directives of the Companies Ordinance, 1984, Insurance Ordinance, 2000, the Insurane Rules, 2017 and the Insurance Accounting Regulations, 2017 shall prevail. Standards, interpretations and amendments not effective at year end Specify accounting convention e.g. historical cost model. {Where Fixed Assets, Investment Properties or Investments are revalued, a note to that effect needs to be included}

• With cash value
  -
• Unit Linked policies
• Universal Life/ Non unit linked policies
• Annuities (specify nature)
• Personal Accident Policies
  -
  -
  -
• Managed fund or deposit administration contracts
  -
  3.5 Deferred Commission expense
  3.6
  Disclose the methods used to determine the various components of policyholder liabilities.
  3.7 Reinsurance contracts held
  3.8 Receivables and payables related to insurance contracts
  For each type of insurance contract issued by the company, identify the insurance risks which are taken by the company and the insured events. The type of customers for which such contracts are relevant and the insured events against which compensation is payable. Also disclose for each type of contract, the revenue recognition policy, the recording mechanism for liabilities against each such contract and claims recognition. Individual Without cash value (protection only) For contracts with a discretionary particiapting feature indicate how the discretion is exercised (eg., what is the basis on which reversionary and terminal bonuses of with profit conventional contracts are declared). Disclose whether impairment testing is performed, the criteria used to assess impairment and the accounting treatment in case such impairment exists. Disclose when such receivables and payables are recognised and the measurement basis thereof. These may include amounts due to and from agents, brokers and insurance contract holders and other insurance companies. Long term group life schemes written on a single premium basis
• Conventional participating policies
  Identify the criteria on the basis of which contracts are designated as those of reinsurance and their classification in the financial statements.
• Conventional non participating policies
  Group
  Short-term group life employer schemes
  Short-term group credit life schemes
  Policyholder Liability
  Specify the deferment policy, the costs deferred and the mechanism of amortisation of such deferred costs. Group Health Schemes Disclose the details of the method used to determine premium deficiency (liability adequacy test) and whether this is determined for each operating segment separately or on a whole company basis along with the accounting treatment thereof.

3.9 Operating segments
3.10 Cash and cash equivalents
3.11 Revenue recognition
a) Premiums only reference be made to description under insurance contracts b) Experience Refunds c) Commission income d) Investment income e) Dividend income Add others if considered significant
3.12 Investments

• in subsidiary and associate
• in equity securities
• in debt securities
• in term deposits
• in mutual funds
  3.13 Offsetting of financial assets and liabilities
  3.14 Provisions
  3.15 Taxation
  Current
  Deferred
  3.16 Staff retirement benefits
  Defined benefit plan
  Defined contribution plan
  3.17 Leases
  3.18 Impairment of assets
  3.19 Dividend distribution
  3.20 Management expenses
  3.21 Others (to be specified)

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
Disclose that the management has exercised its judgment in the process of applying accounting policies. Disclose that the Company makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year and that such estimates and judgments are continually evaluated based on historical experience and expectations of future events that are believed to be reasonable under the circumstances. Disclose the significant estimates made by the company and the basis of such estimation. Also specify the factors subject to uncertainty and the classes of transactions most prone to changes.

5 PROPERTY & EQUIPMENT
200X 200Y
Operating assets 5.1
Capital work in progress 5.2
5.1 Operating Assets
Cost Depreciation Written down Depreciation
As at Additions / Adjustments As at As at For the year / Adjustments As at value as at rate 1 January (disposals) 31 December 1 January (disposals) 31 December31 December % Land Building Leasehold improvements Furniture and fixtures Office equipment Computer equipment Vehicles Cost Depreciation Written down Depreciation As at Additions / Adjustments As at As at For the year / Adjustments As at value as at rate 1 January (disposals) 31 December 1 January (disposals) 31 December31 December % Land Building Leasehold improvements Furniture and fixtures Office equipment Computer equipment Vehicles
5.1.1 Disposal of fixed assets
a) cost or valuation, as the case may be; b) the book value; and c) the sale price and the mode of disposal (e.g. by tender or negotiation) and the particulars of purchaser
5.1.2 Please specify the value of assets held by third parties and assets with zero values.
5.2 Capital Work-In-Progress
Opening balance
Addittions
Transfer to asset
Closing balance
Disclose if the book value of the asset or assets sold exceeds in aggregate fifty thousand rupees, particular of the assets and in aggregate:
Aggregate
200X
Aggregate
200Y
Rupees in '000
(Rupees in '000)
Current year
Prior year

6 Intangible assets
Cost Amortisation Written down Amortisation
As at Additions Adjustments As at As at For the year Adjustments As at value as at period 1 January 31 December 1 January 31 December31 December Computer softwares Others (Please specify) Current year Prior year Where assets have been revalued, the first balance sheet subsequent to the revaluation shall show the original cost; the revalued amount; the date and amount of the revaluation and the basis thereof; name and qualification of the valuer who should be an independent person competent to do so; the nature of any indices used to determine revaluation; and the carrying amount of each class of property and equipment that would have been included in the financial statements had the assets not been carried at revalued amount. Every balance sheet subsequent to the revaluation shall show the total amount of the revaluation; and the carrying amount of each class of property and equipment that would have been included in the financial statements had the assets not been carried at revalued amount. In the case of sale of fixed assets (otherwise than through a regular auction) made to chief executive or a director or an executive or a shareholder holding not less that ten percent of the voting shares of the company or any related party, irrespective of the value, and in the case of any other person if the original cost or the book value of the asset or assets in aggregate exceeds Rupees one million or two hundred fifty thousands respectively (whichever is lower) disclose (a) particulars of the assets (b) cost or revalued amount (c) the book value (d) the sale price (e) the mode of disposal (e.g. by tender or negotiation) and(f) the particulars of the purchaser. Disclose the existence of any restrictions/ discrepancies on the title along-with amount involved; and the existence of any pledge/ mortgage along-with the nature of facilities obtained against such pledge/ mortgage. Disclose the classification of intangible as either finite or infinite life and basis of amortisation for each intangible asset. Disclose description, the carrying amount and remaining amortization period of any individual intangible asset that is material to the financial statements as a whole; the existence and carrying amounts of intangible assets whose title is restricted and the carrying amounts of intangible assets pledged as security for liabilities; a description of any fully amortized intangible asset that is still in use; and a brief description of significant intangible assets controlled by the enterprise but not recognized as assets because they did not meet the recognition criteria.

7 INVESTMENT PROPERTIES ( where cost model is followed) Current year Written down Useful As at Additions As at As at For the As at value as at life 1 January (disposals) 31 December 1 January year 31 December 31 December Leasehold land Building Other installations Others (specify)

---

Prior year
Written down Useful
As at Additions As at As at For the As at value as at life 1 January 31 December 1 January year 31 December 31 December Leasehold land Building Other installations

---

7.1 The market value of the investment properties as per valuation carried out by professional valuers in _____ is
Rs. ________
7 INVESTMENT PROPERTY (where fair value model is followed)

• -

7.1 - -

• -

7.1
Aggregate
200X
Aggregate
200Y
(Only where Company is following fair value model for investment property, disclose information about fair valuation techniques used as required above for Property Plant and Eqiupment.) Closing net book value Opening net book value Additions and capital improvements Unrealized Fair value gain/(loss) Rupees in '000 (Rupees in '000) Cost Depreciation Cost Depreciation

8 INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES
The company’s interests in its subsidiaries and associates were as follows:

Cost impairment
/ provision
Carrying value Cost impairment / provision
Carrying value
Related parties
Listed shares
Unlisted shares
Mutual funds
Others
Listed shares
Unlisted shares
Mutual funds
10 GOVERNMENT SECURITIES (DISTINGUISH BETWEEN HELD TO MATURITY AND AVAILABLE FOR SALE) Maturity Year Effective Yield (%) Amortized Cost Principal Repayme nt Carrying Value X year Pakistan Investment Bonds Y year Pakistan Investment Bonds Cost impairment / provision Carrying value Related parties Term Finance Certificates 11.1 Others Term Finance Certificates 11.2 11.1 Others
11.2 Term Finance Certificates
Current year
INVESTMENTS IN EQUITY SECURITIES - (DISTINGUISH BETWEEN AT FAIR VALUE THROUGH PROFIT AND LOSS AND AVAILABLE FOR SALE) INVESTMENTS IN DEBT SECURITIES - (DISTINGUISH BETWEEN AT FAIR VALUE THROUGH PROFIT AND LOSS, HELD TO MATURITY AND AVAILABLE FOR SALE) Prior year Face Value (Current Year) (Prior Year) (Current Year) (Prior Year) No. of certificates Value of Certificates Rupees in '000 Related Parties Term Finance Certificates

11.3
12 INVESTMENTS IN TERM DEPOSITS
(Total
Current
Year)
(Total
Prior
Year)
Held to maturity
Deposits maturing within 12 months
Deposits maturing after 12 months

• -
  Cost impairment
  / provision
  Carrying value Cost impairment / provision
  Carrying value
  Related parties
  Others
  Disclose particulars of provision for impairment and the movement in the said account in the year. There shall be stated the name of each company, modaraba, firm, government, municipal committee and local authority; in case of shares, various classes and different paid-up values together with the terms of redemption, if any, in case of preference shares; in case of modaraba and redeemable capital the number of certificates and the nominal value of each certificates; and in case of debentures and bonds the terms of redemption, if any, and the rate of interest. If investment is made in unlisted companies and modarabas (other than associates and subsidiaries) there shall be stated the name of the chief executive, managing agent or modaraba company. Percentage of the equity held by the company in an investee company or modaraba or a controlled firm or other associated undertaking, where it exceeds ten percent of the investee's total equity, shall be disclosed. INVESTMENTS IN MUTUAL FUNDS - (DISTINGUISH BETWEEN AT FAIR VALUE THROUGH PROFIT AND LOSS AND AVAILABLE FOR SALE) Current year Prior year Rupees in '000 Value of investments in unlisted investees in which the company holds ten percent or more of the investee's total equity should be calculated by reference to net assets of the investee on the basis of the last available audited accounts in the case of unlisted companies and modarabas and last available accounts incase of other investees together with the period of such accounts shall be disclosed.

14 INSURANCE / REINSURANCE RECEIVABLES
Unsecured and considered good

• -

15 OTHER LOANS AND RECEIVABLES

• -

Advance to supplier
Loans to related parties
Due from insurance contract holders
Due from other insurers / reinsurers
Other receivables
Loans to employees
If the loans to related parties are interest bearing, disclose the interest rate. Also disclose the effective interest rates on such loans. (Total Current Year) (Total Prior Year) Less provision for impairment of receivables from Insurance contract holders Less provision for impairment of due from other insurers / reinsurers Less: provision for impairment of loans and receivables Receivable from related parties Rent receivable Accrued investment income Security deposit (Total Current Year) (Total Prior Year) Loans to agents

16 DEFERRED TAXATION
Deferred debits arising in respect of (To be specified)

• -

Deferred credits arising due to (To be specified) - - 17 PREPAYMENTS Prepaid rent - - Prepaid miscellaneous expenses - - 18 CASH & BANK Cash and Cash Equivalent

• Cash in hand - -
• Policy & Revenue stamps, Bond papers - -
  Cash at bank
• Current account - -
• Savings account - -
  Cash and cash equivalents - -
  Short term borrowings of upto three months including running finance, if any - - Rupees in '000 (Total Prior Year) (Total Current Year) (Total Prior Year) Rupees in '000 Rupees in '000 (Total Current Year) (Total Current Year) (Total Prior Year) Cash and short term borrowing include the following for the purposes of the cash flow statement:
  (Total Current
  Year)
  (Total Prior
  Year)

19 SHARE CAPITAL
19.1 Authorized Capital
(Current Year) (Prior Year)
Rupees in '000
Ordinary shares of Rs._______ each
19.2 Issued, subscribed and paid-up share capital
(Current Year) (Prior Year)
20 RESERVES Rupees in '000
Capital reserves
Reserve for exceptional loss - -
Revenue reserves
General reserve - -
Others (Please specify) - -
21 SURPLUS ON REVALUATION OF FIXED ASSETS
(Current Year) (Prior Year)
Rupees in '000
S urplus on revaluat ion as s et s as at 01 January S urplus aris ing on revaluat ion of as s et s during t he period Surplus relating to incremental depreciation charged on related assets- transferred to inappropriated profit Net of deferred tax Related deferred tax liability S urplus on revaluat ion of as s et s as at 31 Dec ember Less : Related deferred tax liability on Balance at the beginning of the year Transferred to profit and loss account incremental depreciation charged during the year 22 INSURANCE LIABILITIES Reported outstanding claims (including claims in payment) 22.1 Incurred but not reported claims 22.2 Investment component of unit-linked and account value policies 22.3 Liabilities under individual conventional insurance contracts 22.4 22.5 Other Insurance Liabilities 22.6 Unearned Reinsurance Commission

• -
  Disclose information about the purchase and reissue of treasury shares in the period and the values thereof. (Total Current Year) (Total Prior Year) Liabilities under group insurance contracts (other than investment linked) This represents surplus arising on revaluation of freehold land, building on freehold land, plant and machinery both owned and leased carried out in the year 200V . This has been adjusted by surplus realized on disposal of revalued assets and incremental depreciation arising due to revaluation net of deferred tax.

22.1 Reported Outstanding Claims
Gross of Reinsurance
Payable within one year - -
Payable over a period of time exceeding one year - -

• -
  Recoverable from Reinsurers
  Receivable within one year - -
  Receivable over a period of time exceeding one year - -

Net Reported Outstanding Claims - -
22.2 Incurred But Not Reported Claims
Gross of Reinsurance
Reinsurance Recoveries - -
Net of Reinsurance - -

• -
  22.3 Investment Component of Unit Linked and Account Value Policies
  Investment Component of Unit Linked Policies - - Investment Component of Account Value Policies - -

22.4 Liabilities under Individual Conventional Insurance Contracts
Gross of Reinsurance - -
Reinsurance Credit - -
Net of Reinsurance - -
22.5 Liabilities under Group Insurance Contracts (other than investment linked)
Gross of Reinsurance - -
Reinsurance Credit - -
Net of Reinsurance - -
22.6 Other Insurance Liabilities
Gross of Reinsurance - -
Net of Reinsurance - -
(Total Current
Year)
(Total Prior
Year)

23 RETIREMENT BENEFIT OBLIGATIONS
Disclose the general description of the type of plans, changes in the plans, if any, and effect of any changes in the Disclose when was the latest actuarial valuation of the defined benefit plans was conducted and specify the method

(Current Year) (Prior Year)
24 BORROWINGS Rupees in '000
Bank loans - -
Liabilities against assets subject to finance lease 24.1 Other (please specify) - - Total borrowings - - Current portion - - Non-current portion - -
24.1 Liabilities against assets subject to finance lease
Disclose information about the extent and nature, including significant terms and conditions that may affect the amount, timing and certainty of future cash flows. Further, disclose the nature and carrying amount of the assets pledged as security. Disclose the interest rates used as the discounting factor; the existence and terms of renewal or purchase options and escalation clauses; restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing; and any other material terms.

Rupees in '000
25 INSURANCE / REINSURANCE PAYABLES
Due to insurance contract holders
Due to other insurers / reinsurers
26 OTHER CREDITORS AND ACCRUALS
Agents commission payable - -
Federal Excise Duty - -
Federal Insurance Fee - -
WWF - -
Payable to related parties - -
Accrued expenses - -
Income tax liabilties
Other liabilties
Other tax payables - -
Unpaid and Unclaimed
Dividend - -
Others (please specify) - -
(Specify the nature of provision recorded and the reason thereof.)
27 CONTINGENCY(IES) AND COMMITMENT(S)
27.1 Commitments for the acquisition of operating fixed assets
(Current Year) (Prior Year)
Rupees in '000
27.2 Commitments in respect of operating leases
Not later than one year - -
Later than one year and not later than five years - - Later than five years - - (Total Current Year) (Total Prior Year) Disclose a general description of the lessee's significant leasing arrangements including, but not limited to, the basis on which contingent rent payments are determined; the existence and terms of renewal or purchase options and escalation clauses; and restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing. (Total Current Year) (Total Prior Year) All Contingent liabilities other than those arising from contract with policy holders shall be disclosed, unless the possibility of any outflow in settlement is remote, disclose for each class of contingent liability (including taxation contingency) at the balance sheet date a brief description of the nature of contingent liability and, where practicable an estimate of its financial effect; an indication of the uncertainties relating to the amount or timing of any outflow; and the possibility of any reimbursement. Where any of the information required above is not disclosed because it is not practicable to do so, disclose that fact.

Rupees in '000
28 NET INSURANCE PREMIUM REVENUE
Gross Premiums
Regular Premium Individual Policies*
First year
Second year renewal
Subsequent year renewal
Single Premium Individual Policies
Group Policies with Cash Values
Group Policies without Cash Values
Less: Experience refund (if any)
Annuities
Total Gross Premiums
Less: Reinsurance Premiums Ceded
On individual life First year business
On individual life Second year business
On individual life Renewal business
On group policies
Less: Experience refund (if any)
Less: Reinsurance commission on risk premiums
On annuities
On others (please specify)
Net Premiums - -
Rupees in '000
29 FEE INCOME
Fee received - -
Add: - -
Less: - -

• -

30 INVESTMENT INCOME
Income from equity securities (Separate classification for AFS and held for trading)

• Dividend income - -
• Mutual funds - -
• Other (please specify) - -

Income from debt securities (Separate classification for AFS and held to maturity)

• Return on debt securities - -
• Other (please specify) - -
  Income from term deposits
• Return on term deposits - -
• Other (please specify) - -

NET REALISED FAIR VALUE GAINS (LOSSES) ON
FINANCIAL ASSETS
Available for sale financial assets
Realised gains on:
-Equity securities - -
-Debt securities
Realised losses on:
-Equity securities - -
-Debt securities

• -
  (Total Prior
  Year)
  Total (Current
  Year)
  (Total Prior
  Year)
  (Total Prior
  Year)
  Total (Current
  Year)
  Total (Current
  Year)
  (Total Current
  Year)

• Individual policies are those underwritten on an individual basis, and include joint life policies underwritten as such
  (Total Prior
  Year)

NET FAIR VALUE GAINS (LOSSES) ON FINANCIAL
ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Net unrealised gains / (losses) on investments at fair value through profit or loss (held for trading purposes)

• -
  Net unrealised gains / (losses) on investments in financial assets Net unrealised gains / (losses) on investments at fair value through profit or loss (designated upon initial recognition)

Total investment income - -
Less: Impairment in value of available for sale securities - - Less: Investment related expenses - -

• -
  33 NET RENTAL INCOME
  Rental income
  Less: Expenses of investment property
  34 OTHER INCOME
  Return on bank balances
  Gain on sale of fixed assets - -
  Return on loans to employees - -
  Liabilities written back - -
  Miscellaneous (please specify individual head if - - more than 5% of total)

35 NET INSURANCE BENEFITS
Gross Claims
Claims under individual policies by death by insured event other than death by maturity by surrender annuity payments bonus in cash Total gross individual policy claims Claims under group policies by death by insured event other than death by maturity by surrender annuity payments bonus in cash Total gross policy claims Total Gross Claims Less: Reinsurance Recoveries On Individual life claims On Group Life claims On annuities On others Net Insurance benefit expense (Total Prior Year) (Total Prior Year) (Total Prior Year) (Total Current Year) (Total Current Year) (Total Prior Year) (Total Current Year) (Total Current Year)

35.1 Claim Development
Rupees in '000
36 ACQUISITION EXPENSES
Remuneration to insurance intermediaries on individual policies:

• commission to agent on first year premiums
• commission to agent on second year premiums
• commission to agent on subsequent renewal premiums - -
• commission to agent on single premiums - -
• overriding commission to supervisors - -
• other benefits to insurance intermediaries - -
• salaries, allowances and other benefits - -
  Remuneration to insurance intermediaries on group policies:
• commission - -
• other benefits to insurance intermediaries - -
  Other acquisition costs (provide details)
• Employee benefit cost
• Traveling expenses (including cost of contests, conventions etc.)
• Printing and stationery
• Depreciation
• Amortisation
• Rent, rates and taxes
• Electricity, gas and water
• Entertainment
• Vehicle running expenses
• Office repairs and maintenance
• Postages, telegrams and telephone
• others
• stamp duty - -
• initial medical fees - -

(*) These should only include costs specifically related to the branch and not include any apportionment of head office costs (Total Prior Year) (Total Current Year) The claim development pattern for the last five years (including the current year) should be disclosed where more than 10% of the claims are normally reported after the end of the year in which the claim event occurred. The pattern should be reported separately for group business and individual business (where relevant).

37 Rupees in '000
Employee benefit cost - note 35.1 - -
Traveling expenses - -
Advertisements & sales promotion - -
Printing and stationery - -
Depreciation - -
Amortisation - -
Rent, rates and taxes - -
Legal and professional charges - business related - - Electricity, gas and water - - Entertainment - - Vehicle running expenses - - Office repairs and maintenance - - Appointed Actuary fees Bank charges - - Postages, telegrams and telephone - - Insurance Ombudsman expense contribution Annual Supervision fee SECP Bad and doubtful debts - - Miscellaneous (separately identify individual expense head if more than 5% of total)

• -

37.1 Employee benefit cost
Salaries, allowance and other benefits - -
Charges for post employment benefit - -

• -
  (Total Current
  Year)
  MARKETING AND ADMINISTRATION EXPENSES
  (Total Current
  Year
  (Total Prior
  Year)
  (Total Prior
  Year)

Rupees in '000
38 OTHER EXPENSES
Legal & professional fee other than business related - - Auditors' remuneration - note 38.1 - - Subscription - - Registration fee - - Expenses on bonus issue - - Donations - - Workers Welfare Fund Misc. (Please specify separately if more than 5% of total) - -

• -
  38.1 Auditors' remuneration Rupees in '000
  Audit fee - -
  Fee for audit of provident, pension, gratuity and other funds - - Special certifications and sundry advisory services - - Tax services - - Out-of-pocket expenses - -

In case of joint auditors the above information should be shown separately for each of the joint auditors. In case of donations where any director/ executive or their spouse has interest in the donee, disclose the names of such directors / executive, their interest in the donee and the names and addresses of all donees irrespective of the amount of donation. (Total Current Year) (Total Prior Year) (Total Current Year) (Total Prior Year)

Rupees in '000
39 FINANCE COST
Mark-up on short term financing - -
Bank charges (financing related) - -
Mark-up on finance leases - -
Exchange loss - -

• -
  40 TAXATION
  For the year
  Current - -
  Deferred - -
  For the prior year(s)
  Current - -
  Deferred - -
  40.1 Relationship between tax expense and accounting profit
  41 EARNINGS PER SHARE
  Profit (after tax) for the year
  Weighted average number of ordinary shares (adjusted for the effects of all dilutive potential ordinary shares) Diluted earnings per share Basic earnings per share amounts are calculated by dividing the net profit for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding at the balance sheet date. (Total Current Year) Disclose an explanation of changes in the applicable tax rate compared to the previous accounting period. (Total Prior Year) (Total Prior Year) (Total Current Year) (Total Prior Year) (Total Current Year) Rupees in '000 (i) a numerical reconciliation between tax expense (income) and the product of accounting profit multiplied by the applicable tax rate(s), disclosing also the basis on which the applicable tax rate(s) is (are) computed; and/ or (ii) a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis on which the applicable tax rate is computed. Company should also disclose reconciliation between diluted earnings per share and basic earnings per share. An explanation of the relationship between tax expense (income) and accounting profit in either or both of the following forms:
  Distinguish, where applicable, between the provision for Pakistan taxation and the provision for taxation elsewhere.

42 REMUNERATION OF DIRECTORS AND EXECUTIVES
43 RELATED PARTY TRANSACTIONS a) the nature of the related party relationship; b) the type of transactions; c)

i)

each of loans and advances, deposits and acceptances and promissory notes; disclosure may include the aggregate amounts outstanding at the beginning and end of the period, as well as advances, deposits, repayments and other changes during the period; Also disclose short term employee benefits, post employment benefits, other long term benefits, termination benefits and share (stock options) based payments. Executives mean employees, other then the chief executive and directors as defined under the Code of Corporate Governance. amount or appropriate proportions of (this should be disclosed in the foot note to the relevant outstanding items in the notes to the accounts):
Disclose related party relationships where control or significant influence exists, irrespective of whether transactions have taken place between the parties. If there have been transactions between related parties, disclose:

99 ii) iii)

iv) d) e)

irrevocable commitments and contingencies and commitments arising from off-balance sheet items; provisions for doubtful debts related to the amount of outstanding balances; and the elements of transactions necessary for an understanding of the financial statements of the company. the amount of the expense recognized in the period for losses on loans and advances and the amount of the provision at the balance sheet date; and each of principal types of income/mark-up, interest expense and commissions paid;

44 SEGMENTAL INFORMATION
44.1 Revenue Account by Statutory Fund
Income SF 1 SF 2 SF 3 SF 4 SF 5
Premiums less Reinsurances - - - - - -

---

Rental Income from Investment Property - - - - - - Net Investment Income - - - - - - Total Net Income - - - - - - Insurance benefits and Expenditures

---

Policy Transfers to Other Stautory Funds - - - - - - Management Expenses less Recoveries - - - - - - Total Insurance benefits and Expenditures - - - - - -

---

---

Surplus/(Deficit Before Tax) - - - - - -
Taxes chargeable to statutory funds

• Current year - - - - - -
• Prior year(s) - - - - - -
• Deferred - - - - - -
  Total Taxes - - - - - -
  Surplus/(Deficit After Tax - - - - - -
  Movement in policyholder liabilities - - - - - -

---

• Capital returned to Shareholders' Fund - - - - - -

---

Net transfer to/from Shareholders' Fund - - - - - - Balance of Statutory Fund at Beginning of Year Balance of Statutory Fund at End of Year - - - - - - Rupees in '000 200Y Statutory Funds Transfer to and from Shareholders' Fund

• Surplus appropriated to Shareholders' Fund
• Capital contributions from Shareholders' Fund

---

Aggregate
Current
Year
Policy Transfers from Other Statutory Funds
Insurance benefits, including bonuses, net of
Excess of Income over Insurance benefits and Expenditures Net Change in Insurance liabilities (other than outstanding claims) -

Income SF 1 SF 2 SF 3 SF 4 SF 5
Premiums less Reinsurances - - - - - -

---

Rental Income from Investment Property - - - - - - Net Investment Income - - - - - -

---

Total Net Income - - - - - -
Insurance benefits and Expenditures

---

---

Policy Transfers to Other Stautory Funds - - - - - - Management Expenses less Recoveries - - - - - - Total Insurance benefits and Expenditures - - - - - -

---

---

Surplus/(Deficit) Before Tax - - - - - -
Movement in policyholder liabilities - - - - - - Taxes chargeable to statutory funds

• Current year - - - - - -
• Prior year(s) - - - - - -
• Deferred - - - - - -
  Total Taxes - - - - - -

---

Surplus/(Deficit After Tax) - - - - - -
Movement in policyholder liabilities - - - - - -

---

• Capital returned to Shareholders' Fund - - - - - -

---

Net transfer to/from Shareholders' Fund - - - - - - Balance of Statutory Fund at Beginning of Year Balance of Statutory Fund at End of Year - - - - - - Rupees in '000 Excess of Income over Insurance benefits and Expenditures Net Change in Insurance liabilities (other than outstanding claims) 200X Statutory Funds Aggregate Previous Year Policy Transfers from Other Statutory Funds Insurance benefits, including bonuses, net of reinsurance recoveries Transfer to and from Shareholders' Fund

• Surplus appropriated to Shareholders' Fund
• Capital contributions from Shareholders' Fund

---

44.2 Segmental Results by Line of Business

• an analysis between group life, group health, individual life distributed through a direct sales force, individual life distributed through banks, other
• an analysis between business written in Pakistan and business written outside Pakistan
  Income LOB1 LOB2 LOB3 LOB4
  Gross Premiums
• First Year Individual Regular Premiums - - - - -
• Individual Renewal Premiums - - - - -
• Individual Single Premiums - - - - -
• Group Premiums - - - - -
  Total Gross Premiums
  Reinsurance Premiums
• Individual - - - - -
• Group - - - - -
  Total Reinsurance Premiums
  Net Premium Revenues

---

Rental Income from Investment Property - - -
Net Investment Income - - -
Total Net Income - - -
Insurance benefits and Expenditures

---

Policy Transfers to Other Stautory Funds - - - Management Expenses less Recoveries - - - Total Insurance benefits and Expenditures - - -

---

---

Less: Policyholder Liabilities at End of Year - - - Surplus/(Deficit) Before Tax - - - Add: Policyholder Liabilities at Beginning of Year 200X Policy Transfers from Other Statutory Funds Insurance benefits, including bonuses, net of reinsurance Excess of Income over Insurance benefits and Note: Segments for the purpose of this note should include the following (where this is 10% or more of the gross premium revevenue):
Total Current
Year
Lines of Business

Income LOB1 LOB2 LOB3 LOB4
Gross Premiums - - -

• First Year Individual Regular Premiums
• Individual Renewal Premiums
• Individual Single Premiums
• Group Premiums
  Total Gross Premiums
  Reinsurance Premiums
• Individual
• Group
  Total Reinsurance Premiums
  Net Premium Revenues

---

Rental Income from Investment Property - - -
Net Investment Income - - -
Total Net Income - - -
Claims and Expenditures

---

Policy Transfers to Other Stautory Funds - - - Management Expenses less Recoveries - - - Total Claims and Expenditures - - -

---

---

Less: Policyholder Liabilities at End of Year - - - Surplus/(Deficit Before Tax) - - -
44.3 Segment statement of financial position at 31 December 200Y
Statutory
Funds
Shareholders
Fund Total
Property and equipment
Intangible assets
Investment property
Investment in subsidaries and associates
Investments
Loans secured against life insurance policies
Insurance / reinsurance receivables
Other loans and receivables
Deferred taxation
Taxation - payments less provision
Prepayments
Cash and bank
Total Assets
Insurance liabilities net of reinsurance recoveries Retirement benefit obligations Deferred taxation Borrowings Premium received in advance Insurance / reinsurance payables Other creditors and accruals Total Liabilities Policy Transfers from Other Statutory Funds Total Previous Year Claims, including bonuses, net of reinsurance recoveries Excess of Income over Claims and Expenditures Add: Policyholder Liabilities at Beginning of Year 200Y Lines of Business

Segment statement of financial position at 31 December 200X Statutory Funds Shareholders Fund Total Property and equipment Intangible assets Investment property Investment in subsidaries and associates Investments Loans secured against life insurance policies Insurance / reinsurance receivables Other loans and receivables Deferred taxation Taxation - payments less provision Prepayments Cash and bank Total Assets Insurance liabilities net of reinsurance recoveries Retirement benefit obligations Deferred taxation Borrowings Premium received in advance Insurance / reinsurance payables Other creditors and accruals Total Liabilities

45 MOVEMENT IN INVESTMENTS
46 MANAGEMENT OF INSURANCE RISK AND FINANCIAL RISK
46.1 Insurance risk
a) Frequency and severity of claims
The risk under any one insurance contract is the possibility that the insured event occurs and the uncertainty of the amount of the resulting claim. By the very nature of an insurance contract, this risk is random and therefore unpredictable. Disclose the objective of each risk mitigating factor along with the details as to how these mitigating factors are applied to each insurance contract. This information shall include qualitative as well as quantitative criteria used for such risk management. Define factors affecting the frequency and severity of claims, indicating how each factor is dealt with through the management of insurance risk (as described above). The management of concentration risk should specifically be included as a
part of this note as should risks associated with the improvement in mortality for
annuity contracts.
This should include, in the case this is significant, quantitative data on exposure of the company to specific risks and locations relevant to possible accumulation of losses. Specify what is the risk under any insurance contract for e.g. the possibility that the insured event occurs and the uncertainty of the amount of the resulting claim.

b)

• Mortality and morbidity experience, especially for various classes
  of short term business (group life, health, personal accident etc).
• Persistency rates for long term indivdual policies.
• Expense levels and inflation
• Investment returns
• Tax
  Disclose the process followed for recording and estimating the cost of unpaid claims (both reported and not) and the estimation techniques used by the company. Disclose how the techniques are used by the company. c) Process used to decide on assumptions d) Changes in assumptions e) Sensitivity analysis Disclose the process for estimation of IBNR and its provisioning mechanism in detail. In respect of all the variables affecting the estimates reported in the financial statements indicate the impact of any variation in the assumptions made Sources of uncertainty in estimation of future benefit payments and premium receipts Where assumptions are made with respect to amounts recognized in the financial statements (especially those listed above under (b)), disclose the process used to determine these assumptions which shall, where relevant, include the process followed to arrive at any judgement made by the company's management. In the case of each separate assumption specify details about the assumptions and on the basis on which such assumptions are used by the company. Disclose the changes in assumptions if any, the qualitative and quantitative information in this respect and the monetary impact of such changes on the profit and loss account. Also disclose why such changes in assumptions have been incorporated in the company's estimation. Disclose factors impacting future benefit payments and premium receipts along with a statement of the assumptions made by the company and an indication of factors which may cause these assumptions to vary. These may include (where applicable):

46.2 a)
b)
46.3 Credit risk
46.4 Capital management
Sensitivity analysis - equity risk
Maturity profile of financial assets and liabilities:
Sensitivity analysis - interest rate risk
Financial risk
An entity shall disclose information that enables users of its financial statements to evaluate the entity’s objectives, policies and processes for managing capital.

47 STATEMENT OF SOLVENCY (TO BE PRESENTED IN THE FINANCIAL STATEMENTS BY LISTED CONCERNS ONLY) Shareholders' Fund Statutory Fund Statutory Fund Assets Property and equipment - - - Intangible assets - - - Investment property - - - Investments in subsidiaries and associates (applicable where equity accounting is followed) Investments - - - Equity securities Government securities - - - Debt securities - - - Term deposits Others (please specifiy) - - - Loans secured against life insurance policies - - - Insurance / reinsurance receivables - - - Other loans and receivables - - - Deferred taxation - - - Taxation - payments less provision - - - Prepayments - - - Cash & Bank - - - Total Assets (A) - - - In-admissible assets as per following clauses of section 32(2) of the Insurance Ordinance, 2000 (a) - - - (b) - - - … - - - … - - - … - - - .. - - - . - - - (U)-(i) - - - (U)-(ii) - - - (U)-(iii) - - - (v) - - - (w) - - - Total of In-admissible assets (B) - - - Total Admissible Assets (C=A-B) - - - Total Liabilities Insurance Liabilities Net of Reinsurance Recoveries - - - Retirement benefit obligations - - - Deferred taxation - - - Borrowings - - - Premium received in advance - - - Insurance / reinsurance payables - - - Other creditors and accruals - - - Taxation - provision less payments Total Liabilities (D) - - - Total Net Admissible Assets (E=C-D) - - - Minimum Solvency Requirement Shareholder's Fund - Policyholders Liabilitiy - - Solvency Margin - - Excess / Deficit in Net Admisible Assets over Minimum Requirements - - - Current year Rupees in thousand

48 CORRESPONDING FIGURES
Disclose the reclassification from and to of the prior period figures.
49 SUBSEQUENT EVENTS - NON ADJUSTING

• Dividend
• Issue of bonus shares
• Transfer to / (from) reserves
  50 DATE OF AUTHORISATION FOR ISSUE
  51 GENERAL
  Chief Executive Officer Director Director Chairman The figures in the financial statements may be rounded off to the nearest thousand.

FORMS OF REGULATORY RETURNS FOR NON-LIFE INSURERS Company Name: FORM GA
Financial Year ended 31 December ...........
Balance Sheet
Figures in Rs 000
Note Current Prior Note Current Prior
Year
Rs
Share Capital and Reserves Cash and Bank Deposits Cash and other equivalent Domestic companies Current and other accounts Authorised Share Capital Deposits maturing within 12 months Paid-up share capital Deposits maturing after 12 months Retained earnings Reserves Loans (Secured or un-secured - classify as appropriate) Other equity (please specify) To employees To agents Foreign companies Others Head office account Other equity (please specify) Investment in subsidiaries and associates Fixed Income Securities Listed Equities Underwriting provisions Unlisted Equities Provision for outstanding claims (including IBNR) Provision for unearned premium Other Investments Premium Deficiency Reserve Government Securities Unearned Reinsurance Commission Other Fixed Income Securities Listed Equities Total underwriting provisions Unlisted Equities Mutual Funds Deferred Liabilities Others (describe) Deferred Taxation Less: Provision for diminution in value Staff Retirement Benefits Others (please specify) Investment Property Deferred Taxation Creditors and Accruals Premiums Received in Advance Preliminary and Deferred Expenses Amounts due to other insurers/reinsurers Accrued Expenses Current Assets - Others Taxation - Provision less payments Premiums due but unpaid Other Creditors and Accruals (describe) Amounts due from other insurers/ reinsurers Reinsurance recoveries due but unpaid Borrowings Reinsurance recoveries against outstanding claims Short term running finance Salvage recoveries accrued Loans received from banks Premium and claim reserves retained by cedants Other loans Accrued investment income Other debt security issued Taxation - payments less provision Deferred commission expense Other liabilities Other deferred acquisition costs Other liabilities (please specify) Prepayments Sundry receivables(provide details) TOTAL LIABILITIES Fixed Assets TOTAL EQUITY AND LIABILITIES Tangible & Intangible Land and Builldings CONTINGENCIES AND COMMITMENTS (if applicable) Furniture, Fixtures and Office Equipment Motor Vehicles The annexed notes form an integral part of these accounts. Capital Work in Progress Intangibles (Please specify) TOTAL ASSETS Chief Executive Officer Director Director Chairman

Company Name: FORM GB
Financial Year ended 31 December ...........
Profit and Loss Account Figures in '000
Note Fire Marine, Motor Act Liability Others Treaty Current Prior & Aviation & Year Year Property Transport AggregateAggregate Revenue Account Net Premium Revenue Net Claims Premium Deficiency Expenses Expenses Net Commission Underwriting result Investment Income Rental Income Other Income (provide details) General and administration expenses Finance costs Share of (loss)/profit of associates Profit/(Loss) before tax Provision for Taxation Profit/(Loss) after tax Profit and Loss Appropriation Account Balance at commencement of year Profit/Loss after tax for the year Prior Year Adjustments (provide details) Proposed Dividend/Remittance to Head Office Transfers to/(from) reserves (provide details) Other appropriations (provide details) Balance Unappropriated Profit/(Loss) at end of Year The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM GC
Financial Year ended 31 December ...........
Statement of Cash Flows Figures in '000
Current Prior
Operating Cash Flows Year Year a) Underwriting activities Premiums received Reinsurance premiums paid Claims paid Surrenders paid Reinsurance and other recoveries received Commissions paid Commissions received Other underwriting payments, if any Other underwriting receipts, if any Net cash flow from underwriting activities 0 0 b) Other operating activities Income tax paid General management expenses paid Other operating payments Other operating receipts Loans advanced Loan repayments received Other payments on operating assets Other receipts in respect of operating assets Net cash flow from other operating activities 0 0 Total cash flow from all operating activities 0 0 Investment activities Profit/ Return received Dividends received Rentals received Payments for investments Proceeds from disposal of investments Fixed Capital Expenditure Proceeds from disposal of fixed assets Total cash flow from investing activities 0 0

Financing activities
Share capital received
Remittance to/from Headoffice
Loans received
Loans repaid
Dividends paid
Financial charges paid
Payments on finance leases
Total cash flow from financing activities
Net cash inflow/outflow from all activities
Cash at the beginning of the year 0 0
Cash at the end of the year 0 0
Reconciliation to Profit and Loss Account
Operating cash flows
Depreciation expense
Financial charges expense
Profit/(loss) on disposal of fixed assets
Increase/(decrease) in assets other than cash
(Increase)/decrease in liabilities other than running finance Revaluation adjustment Other adjustments (please specify) Profit or loss after taxation 0 0 Definition of cash Please provide a definition of which items have been treated as cash for the purposes of this statement, and if different from Cash and Overdrafts as disclosed in the Balance Sheet, provide a reconciliation. Cash for the purposes of the Statement of Cash Flows consists of:
The annexed notes form an integral part of these accounts.
Chief Executive Officer Director Director Chairman

Company Name: FORM GD
Financial Year ended 31 December ........... Figures in '000 Statement of Premiums Current Prior Year Year Class Premiums Unearned premium reserve Premiums Reinsurance Reinsurance Net premium Net premium written Opening Closing earned ceded expense revenue revenue Rs Direct and facultative 1 Fire and Property Damage 0 0 2 Marine, Aviation and Transport 0 0 3 Motor () 0 0 4 Liability 0 0 5 Workers' Compensation 0 0 6 Credit and Suretyship 0 0 7 Accident and Health 0 0 8 Agriculture (including crop insurance) 0 0 9 Miscellaneous 0 0 Total 0 Treaty 9 Proportional 0 0 10 Non-proportional 0 0 Total 0 Grand Total 0 Note: If there is any business written outside Pakistan then a separate statement on a similar format should be prepared in respect of that business. () Motor should include both third party liability and comprehensive The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman Prepaid Reins Premium

Company Name: FORM GE
Financial Year ended 31 December ...........
Statement of Claims Figures in '000
Current Year Prior Year
Class Claims Outstanding claims Claims Reinsurance Reinsurance and other Reinsurance Net claims Net claims paid Opening Closing expense and other rec overies in res pec t of and other expense expense recoveries outstanding claims recoveries Rs received Opening Closing revenue Rs Rs Direct and Rs facultative 1 Fire and Property Damage 0 2 Marine, Aviation and Transport 0 3 Motor () 0 4 Liability 0 5 Workers' Compensation 0 6 Credit and Suretyship 0 7 Accident and Health 0 8 Agriculture (including crop insurance) 0 9 Miscellaneous 0 Total 0 Treaty 9 Proportional 0 10 Non-proportional 0 Total 0 Grand Total 0 Note: If there is any business written outside Pakistan then a separate statement on a similar format should be prepared in respect of that business. () Motor should include both third party liability and comprehensive The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM GF
Financial Year ended 31 December ...........
Statement of Expenses Figures in '000
Current Year Prior Year
Opening Closing
Class Commissions Deferred Deferred Net commission Other man- Underwriting Commissions Net underwriting Net underwriting paid or payable commission commission expense agement expenses expense from reinsurers expense expense Rs a b c d = a+b-c e f = d+e g g = e-f Refer note 5 refer note below Direct and facultative 1 Fire and Property Damage 2 Marine, Aviation and Transport 3 Motor () 4 Liability 5 Workers' Compensation 6 Credit and Suretyship 7 Accident and Health 8 Agriculture (including crop insurance) 9 Miscellaneous Total 0 Treaty 9 Proportional 10 Non-proportional Total 0 Grand Total 0 Notes: Commission from reinsurers is arrived at taking impact of opening and closing unearned commission. If there is any business written outside Pakistan then a separate statement on a similar format should be prepared in respect of that business. () Motor should include both third party liability and comprehensive The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM GG
Financial Year ended 31 December ...........
Statement of Investment Income Figures in '000 Current Prior Year Year Rs Rs Income from Trading Investments Gain/loss on trading (I.e. buying and selling difference) Dividend Income ( earned while holding the securities) Others, if any (Please specify) Income from Non-Trading Investments Held to Maturity or Available for sale (classify as appropriate) Return on Government Securities Return on Other Fixed Income Securities and Deposits Dividend Income Amortisation of discount/premium relative to par Others, if any (Please specify) Gain/Loss on Sale of Non-Trading Investments (classify as appropriate) Gain/Loss on Revaluation of Investments

• Trading Investments
• Available for sale
  Provision for Impairment in Value of Investments Provision for Portfolio Held to Maturity Provision for Portfolio Available for Sale Less: Investment Related Expenses Net Investment Income The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM GH
Financial Year ended 31 December ...........
Analysis of Claims
Policy year basis / Accident year basis
(delete as applicable)
Figures in '000
Class of Claims Paid Outstanding claims (notified) at end of year Business Development year: Development year:
0 1 2 3 4 5 and aboveTotal 0 1 2 3 4 5 and above Total IBNR Total Rs 1 Claims 0 Fire and Property Damage Recoveries on claims 0 Net 0 2 Claims 0 Marine, Aviation and Transport Recoveries on claims 0 Net 0 3 Claims 0 Motor Act Recoveries on claims 0 Net 0 4 Claims 0 Liability Recoveries on claims 0 Net 0 5 Claims 0 Workers' Compensation Recoveries on claims 0 Net 0 6 Claims 0 Credit and Suretyship Recoveries on claims 0 Net 0 7 Claims 0 Accident and Health Recoveries on claims 0 Net 0 8 Claims 0 Agricultural (including crop insurance) Recoveries on claims 0 Net 0 9 Claims 0 Miscellaneous Recoveries on claims 0 Net 0 Total Claims 0 Recoveries on claims 0 Net 0 Treaty 9 Claims 0 Proportional Recoveries on claims 0 Net 0 10 Claims 0 Non-proportional Recoveries on claims 0 Net 0 Total Claims 0 Recoveries on claims 0 Net 0 Grand Total Claims 0 Recoveries on claims 0 Net 0

Form GH
Numbers of claims in year: 0 1 2 3 4 5 and aboveTotal Rs 1 Notified in year 0 Fire and Property Damage Paid in year 0 Outstanding at end of year 0 2 Notified in year 0 Marine, Aviation and Transport Paid in year 0 Outstanding at end of year 0 3 Notified in year 0 Motor Act Paid in year 0 Outstanding at end of year 0 4 Notified in year 0 Liability Paid in year 0 Outstanding at end of year 0 5 Notified in year 0 Workers Compensation Paid in year 0 Outstanding at end of year 0 6 Notified in year 0 Credit and Surety Ship Paid in year 0 Outstanding at end of year 0 7 Notified in year 0 Accident and Health Paid in year 0 Outstanding at end of year 0 8 Notified in year 0 Agricultural (including crop insurance) Paid in year 0 Outstanding at end of year 0 9 Notified in year 0 Miscellaneous Paid in year 0 Outstanding at end of year 0 Total Notified in year 0 Paid in year 0 Outstanding at end of year 0 9 Notified in year N/A Proportional Paid in year N/A Outstanding at end of year N/A 10 Notified in year 0 Non-Proportional Paid in year 0 Outstanding at end of year 0 Note If there is any business written outside Pakistan then a separate statement on a similar format should be prepared in respect of that business. The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM GI
Financial Year ended 31 December ...........
Statement of Estimated Exposures
1) Risk Exposures
Maximum Maximum Highest Maximum
Gross Risk Gross Risk Net Risk Reinsurance
Exposure PML Retention Cover
Rs million Rs million Rs million Rs million
Direct and facultative 1 Fire and Property Damage 2 Marine, Aviation and Transport 3 Motor Act 4 Liability 5 Workers' Compensation 6 Credit and Suretyship 7 Accident and Health 8 Agriculture (including crop insurance) 9 Miscellaneous Treaty 9 Proportional 10 Non-proportional
2) Aggregate Event Exposures
Provide below up to five aggregate events which constitute the maximum exposures of the company. Include:
the highest gross aggregate exposure; the highest gross maximum probable loss; the highest net maximum probable loss. Event Gross Gross Net Maximum (description) Aggregate Event Event Reinsurance Exposure PML Retention Cover Rs million Rs million Rs million Rs million The annexed notes form an integral part of these accounts. Chief Executive Officer Director Director Chairman

Company Name: FORM GI
Financial Year ended 31 December ...........
Statement of Estimated Exposures
(Amounts in Rupees million )
1) Risk Exposures Maximum gross risk exposure Maximum gross risk PML Highest net risk retention Maximum reinsurance cover
(Gross sum insured of risk (Underwriter's estimation of (Retention on PML basis) (Cession on PML basis) having highest PML) maximum possible loss of 'a') (a) (b=x% of a) (.c) (d=b-c) Classes of business into which non-life insurance business is divided as per section 4(3) of the Insurance Ordinance 2000, and Performa given in Accounting Regulations for non-life insurance, i.e., Direct and facultative 1 Fire and property damage - 2 Marine, aviation and transport - 3 Motor act - 4 Liability 5 Workers' compensation 6 Credit and suretyship 7 Accident and health 8 Agricultural (including crop insurance) 9 Miscellaneous Treaty 9 Proportional - - 10 Non-proportional - -
2) Aggregate Event Exposures
Provide below up to five aggregate events which constitute the maximum exposures of the company. Include:
the highest gross aggregate exposure; the highest gross maximum probable loss; the highest net maximum probable loss. Event (description) Gross aggregate exposure Gross event PML Net event retention Maximum reinsurance cover (Gross aggregate sum insured (Underwriter's estimation of (Retention on event (Cession on event PML basis) of highest cat. event PML) event maximum possible PML basis) loss of "a") (a) (b=x% of a) (.c) (d=b-c)
1) Flood - Multan
2) Earth Quake - Multan
3) Earth Quake - Karachi
4) Flood - Hafizabad
5) Earth Quake - Hafizabad
The annexed notes form an integral part of these accounts.
Chief Executive Officer Director Director Chairman Risk Exposures Is any condition that presents a possibility of a financial loss. Every exposure has the following elements

• Financial value exposed to loss
• Cause of loss (peril)
• Potential financial consequences of that loss
  Probable maximum loss (PML) is the value of the largest loss that is likely to occur. The underwriter's estimation of maximum possible loss is based on an organization's own experience or on other organizations' experience. If statistical data are available, it may be useful to assume that PML is close to average past losses. Aggregate Event Exposures Is a condition that presents a possibility of a highest financial loss due to a catastrophic event involving various risks simultaneously in a large area or the whole city. Probable maximum loss (PML) is the value of the largest loss that is likely to occur in an event. The underwriter's estimation of maximum possible loss is based on an organization's own experience or on other organizations' experience. If statistical data are available, it may be useful to assume that PML is close to average past losses.

Company Name: Form GJ
Financial Year ended 31 December ...........
Statement of Solvency
Current year
Rupees in thousand
Assets
Property and equipment -
Intangible assets -
Investment property -
Investments in subsidiary and associate (applicable where equity accounting is followed) - Investments Equity securities - Debt securities - Term deposits Loans and other receivables - Insurance / Reinsurance receivables - Reinsurance Recoveries against O/S claims - Salvage recoveries accrued - Deferred Commission Expense - Deferred taxation - Prepayments - Cash & Bank - Total Assets (A) - In-admissible assets as per following clauses of section 32(2) of the Insurance Ordinance, 2000 (a) - (b) - … - … - … - .. - . - (U)-(i) - (U)-(ii) - (U)-(iii) - (v) - (w) - Total of In-admissible assets (B) - Total Admissible Assets (C=A-B) - Total Liabilities Underwriting Provisions - Outstanding claims including IBNR - Unearned premium reserves - Premium deficiency reserves - Unearned Reinsurance Commission - Retirement benefit obligations - Deferred taxation - Borrowings - Premium received in advance - Insurance / Reinsurance Payables - Other Creditors and Accruals Income tax liabilities Total Liabilities (D) - Total Net Admissible Assets (E=C-D) - Minimum Solvency Requirement (higher of following) - Method A - U/s 36(3)(a) Method B - U/s 36(3)(b) Method C - U/s 36(3)(c) Excess / Deficit in Net Admisible Assets over Minimum Requirements - Chief Executive Officer Director Director Chairman - - -

Company Name: Form GK
Financial Year ended 31 December ...........
Classified Summary of Assets in Pakistan
Cost or Book
Value Market Value Cost or Book
Value Market Value
CLASS OF ASSETS
TOTAL ASSETS - - - -
The annexed notes form an integral part of these accounts.
Chief Executive Officer Director Chairman
Rupees in 000
Current Year Prior Year Valuation
Basis Remarks

Contents
Statement of financial position
Statement of comprehensive income
Statement of changes in equity
Cash flow statement
1 Legal status and nature of business
2 Basis of preparation and statement of compliance
2.1 Basis of measurement
2.2 Functional and presentation currency
2.3 Standards, interpretations and amendments effective in (current year)
2.4 Standards, interpretations and amendments not effective at year end
3 Summary of significant accounting policies
3.1 Property and equipment
3.2 Intangible assets
3.3 Investment property
3.4 Insurance contracts
3.5 Deferred Commission expense / Acquisition Cost
3.6 Unearned premium
3.7 Premium deficiency
3.8 Reinsurance contracts held
3.9 Receivables and payables related to insurance contracts
3.10 Segment Reporting
3.11 Cash and cash equivalents
3.12 Revenue recognition
3.13 Investments
3.14 Offsetting of financial assets and liabilities
3.15 Provisions
3.16 Taxation
3.17 Staff retirement benefits
3.18 Leases
3.19 Impairment of assets
3.20 Dividend distribution
3.21 Management expenses
3.22 Others (to be specified)
4 Critical accounting estimates and judgments
5 Property and equipment
5.1 Operating assets
5.2 Capital work-in-progress
6 Intangible assets
7 Investment property
8 Investments in subsidiary and associate
11 Investments in term deposits
12 Loans and other receivables
13 Insurance / Reinsurance receivables
14 Retirement benefit obligations
15 Deferred taxation
16 Prepayments
17 Cash & Bank
FORMS OF PUBLISHED FINANCIAL STATEMENTS OF NON-LIFE INSURERS Investments in equity securities - (distinguish between at fair value through profit and loss and available for sale) 10 Investments in debt securities - (distinguish between at fair value through profit and loss, held to maturity and available for sale)

18 Share capital
18.1 Authorized capital
18.2 Issued, subscribed and paid-up share capital
19 Reserves
20 Borrowings
20.1 Liabilities against assets subject to finance lease
21 Insurance / Reinsurance payables
22 Other creditors and accruals
23 Contingency(ies) and commitment(s)
23.1 Commitments for the acquisition of operating fixed assets
23.2 Commitments in respect of operating leases
24 Net Insurance premium
25 Net Insurance Claims Expense
26 Net Commission Expense / Acquisition Cost
27 Management expenses
27.1 Employee benefit cost
28 Investment income
29 Rental income
30 Other income
31 Other expenses
31.1 Auditors' remuneration
32 Finance cost
33 Taxation
33.1 Relationship between tax expense and accounting profit
34 Earnings per share
35 Compensation of directors and executives
36 Related party transactions
37 Segment informaion
38 Movement in investments
39 Management of insurance risk and financial risk
39.1 Insurance risk
39.2 Financial risk
39.3 Credit risk
39.4 Capital management
40 Statement of Solvency (To be presented in the case of listed concerns only) 41 Corresponding figures 42 Subsequent events - non adjusting 43 Date of authorisation for issue 44 General

STATEMENT OF FINANCIAL POSITION AS AT ………….
Note
Current year Prior year
Assets
Property and equipment 5 - -
Intangible assets 6 - -
Investment property 7 - -
Investments in subsidiary and associate 8 - -
Investments
Equity securities 9 - -
Debt securities 10 - -
Term deposits 11
Loans and other receivables 12 - -
Insurance / Reinsurance receivables 13 - -
Reinsurance recoveries against outstanding claims Salvage recoveries accrued - - Deferred Commission Expense / Acquisition cost 26 - - Deferred taxation 15 - - Taxation - payment less provisions Prepayments 16 Cash & Bank 17 - - Total Assets - - Equity and Liabilities Capital and reserves attributable to Company's equity holders Ordinary share capital 18 - - Share premium - - Reserves 19 - - Unappropriated profit/(Accumulated loss) - -

• -
  Total Equity - -
  Surplus on revaluation of fixed assets - -
  Liabilities
  Underwriting Provisions - -
  Outstanding claims including IBNR 25 - -
  Unearned premium reserves 24 - -
  Premium deficiency reserves - -
  Unearned Reisurance Commission 26 - -
  Retirement benefit obligations 14 - -
  Deferred taxation 15 - -
  Borrowings 20 - -
  Premium received in advance - -
  Insurance / Reinsurance Payables 21 - -
  Other Creditors and Accruals 22
  Taxation - provision less payment
  Total Liabilities - -
  Total Equity and Liabilities - -
  Contingency(ies) and commitment(s) 23
  The annexed notes 1 to ….. form an integral part of these financial statements Chief Executive Officer Director Director Chairman Rupees in thousand

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED ………….
(as per one Statement approach)
Note
Current year Prior year
Net insurance premium 24 - -
Net Insurance claims 25 - -
Premium deficiency - -
Net Commission and other acquistion costs 26 - - Insurance claims and acquisition expenses - - Management Expenses 27 - - Underwriting results - - Investment income 28 - - Rental income 29 - - Other income 30 - - Other expenses 31 - - Results of operating activities - - Finance costs 32 - - Share of (loss)/profit of associates - - Profit before tax - - Income tax expense 33 - - Profit after tax - - Other comprehensive income:
Unrealised gains / (losses) on available-for-sale investments - - Others (please specify) - - Other comprehensive income for the year - - Total comprehensive income for the year - - Earnings (after tax) per share - Rupees 34 - - Chief Executive Officer Director Director Chairman Note:
Rupees in thousand
The annexed notes 1 to ….. form an integral part of these financial statements The Company has the option to prepare the Statement of Comprehensive Income as per one Statement approach or two Statement approach

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ………….
(as per two Statement approach)
Note
Current year
Prior year
Net insurance premium 24 - -
Net Insurance claims 25 - -
Premium deficiency - -
Net Commission and other acquistion costs 26 - - Insurance claims and acquisition expenses - - Management Expenses 27 - - Underwriting results - - Investment income 28 - - Rental income 29 - - Other income 30 - - Other expenses 31 - - Results of operating activities - - Finance costs 32 - - Share of (loss)/profit of associates - - Profit before tax - - Income tax expense 33 - - Profit after tax - - Earnings (after tax) per share - Rupees 34 - - Chief Executive Officer Director Director Chairman Note:
Rupees in thousand
The annexed notes ---- form an integral part of these financial statements The Company has the option to prepare the Statement of Comprehensive Income as per one Statement approach or two Statement approach

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED ………….
(as per two Statement approach)
Note
Current year
Prior year
Profit after tax - -
Other comprehensive income:
Unrealised gains / (losses) on available-for-sale investments - - Others (please specify) - - Other comprehensive income for the year - - Total comprehensive income for the year - - Chief Executive Officer Director Director Chairman Note:
Rupees in thousand
The Company has the option to prepare the Statement of Comprehensive Income as per one Statement approach or two Statement approach

CASH FLOW STATEMENT FOR THE YEAR ENDED ………………
Current year
Prior year
Operating Cash flows
(a) Underwriting activities
Insurance premium received - -
Reinsurance premium paid - -
Claims paid - -
Reinsurance and other recoveries received - -
Commission paid - -
Commission received - -
Management expenses paid - -
Others if any (please specify) - -
Net cash flow from underwriting activities - - (b) Other operating activities Income tax paid - - Other operating payments - - Other operating receipts - - Loans advanced - - Loan repayments received - - Net cash flow from other operating activities - - Total cash flow from all operating activities - - Investment activities Profit/ return received - - Dividend received - - Rental received - - Payment for investments / investment properties - - Proceeds from investments / investment properties - - Fixed capital expenditure - - Proceeds from sale of property, plant and equipment - - Total cash flow from investing activities - - Financing activities Proceeds from issuance of shares - - Interest paid - - Loan received - - Loan paid - - Proceeds from issuance of convertible bond - - Payments for redemption of convertible bond Dividends paid - - Total cash flow from financing activities - - Net cash flow from all activities - - Cash and cash equivalents at beginning of year - - Cash and cash equivalents at end of year - - Reconciliation to Profit and Loss Account Operating cash flows - - Depreciation expense - - Financial charges expense - - Profit/(loss) on disposal of property, plant and equipment - - Profit/(loss) on disposal of investments / investment properties - - Rental income - - Dividend income - - Other Investment income - - Share of profit from associates - - Increase/(decrease) in assets other than cash - - (Increase)/decrease in liabilities other than borrowings - - Revaluation adjustment - - Other adjustments (please specify) - - Profit or loss after taxation - - Chief Executive Officer Director Director Chairman The annexed notes 1 to ….. form an integral part of these financial statements Rupees in thousand

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED ……………… General reserves Others (please specify) Balance as at January 1, 200X - - - - - - Total comprehensive income for the year - - - - - - Others (if any, please specify) - - - - - - Dividend relating to 200X - - - - - - Balance as at December 31, 200X - - - - - - Total Comprehensive Income for the year Others (if any, please specify) - - - - - - Dividend relating to 200X - - - - - - Balance as at December 31, 200X - - - - - - Chief Executive Officer Director Director Chairman Attributable to equity holders of the Company Rupees in thousand The annexed notes 1 to ….. form an integral part of these financial statements Unappropriated profit / (Accumulated loss) Total Share capital Capital reserves (please specify) Revenue reserves

COMPANY NAME
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED _____________ 1 LEGAL STATUS AND NATURE OF BUSINESS 2 BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE
2.1 Basis of measurement
2.2 Functional and presentation currency
2.3 Standards, interpretations and amendments effective in (current year)
2.4
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Property and Equipment
3.2 Intangible assets
3.3 Investment property
3.4 Insurance contracts
The accounting policies applied in the preparation of these financial statements are set out below. Disclose the domicile and legal form of the company, its country of incorporation and the address of the registered office (or principal place of business, if different from the registered office); a description of the nature of company's operations and its principal activities; the name of the parent enterprise and the ultimate parent enterprise of the group, as applicable. These financial statements are prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance,1984, the Insurance Ordinance, 2000, the Insurance Rules, 2017 and the Insurance Accounting Regulations, 2017. In case requirements differ, the provisions or directives of the Companies Ordinance, 1984, Insurance Ordinance, 2000 the Insurance Rules, 2017 and the Insurance Accounting Regulations, 2017 shall prevail. Specify for each standard the details as required by the applicable IFRS. Specify for each standard the details as required by the applicable IFRS. Standards, interpretations and amendments not effective at year end Specify accounting convention e.g. historical cost model. Specify presentation and functional currency of the company. Disclose the general term of the insurance contracts issued by the company and that such contracts consist of fire and property, marine, aviation and transport insurance contracts, etc.

133 3.5 Deferred Commission expense /Acquisition cost
3.6 Unearned premium
Specify the method of recording unearned premium.
3.7 Premium deficiency
3.8 Reinsurance contracts held
3.9 Receivables and payables related to insurance contracts
Specify the deferment policy, the costs deferred and the mechanism of amortisation of such deferred costs Disclose whether impairment testing is performed, the criteria used to assess impairment and the accounting treatment in case such impairment exists. Disclose when such receivables and payables are recognised and the measurement basis thereof. These may include amounts due to and from agents, brokers and insurance contract holders and other insurance companies. Identify the criteria on the basis of which contracts are designated as those of reinsurance and their classification in the financial statements. Disclose the details of the method used to determine premium deficiency (liability adequacy test) and whether this is determined for each operating segment separately or on a whole company basis along with the accounting treatment thereof. For each type of insurance contract issued by the company, identify the insurance risks which are taken by the company and the insured events. The type of customers for which such contracts are relevant and the insured events against which compensation is payable. Also disclose for each type of contract, the revenue recognition policy, the recording mechanism for liabilities against each such contract and claims recognition.

3.10 Segment reporting
3.11 Cash and cash equivalents
3.12 Revenue recognition
a) Premiums (only reference be made to description under insurance contracts) b) Commission income c) Investment income d) Dividend income Add others if considered significant
3.13 Investments
in subsidiary and associate in equity securities in debt securities in term deposits
3.14 Offsetting of financial assets and liabilities
3.15 Provisions
3.16 Taxation
Current
Deferred
3.17 Staff retirement benefits
Defined benefit plan
Defined contribution plan
3.18 Leases
3.19 Impairment of assets
3.20 Dividend distribution
3.21 Management expenses
3.22 Others (to be specified)

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
(Current
Year)
(Prior
Year)
Note Rupees in '000
5 PROPERTY AND EQUIPMENT
Operating assets - note --- 5.1 - -
Capital work-in-progress - note --- 5.2 - -

• -
  Disclose that the management has exercised its judgment in the process of applying accounting policies. Disclose that the Company makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year and that such estimates and judgments are continually evaluated based on historical experience and expectations of future events that are believed to be reasonable under the circumstances. Disclose the significant estimates made by the company and the basis of such estimation. Also specify the factors subject to uncertainty and the classes of transactions most prone to changes.

5.1 Operating assets
Cost Depreciation Written down Depreciation
As at Additions / Adjustments As at As at For the year / Adjustments As at value as at rate 1 January (disposals) 31 December 1 January (disposals) 31 December 31 December % Land (Distinguish between freehold and leasehold) Building (Distinguish between freehold and leasehold) Leasehold improvements Furniture and fixtures Office equipment Computer equipment Vehicles Others (if any) Cost Depreciation Written down Depreciation As at Additions / Adjustments As at As at For the year / Adjustments As at value as at rate 1 January (disposals) 31 December 1 January (disposals) 31 December 31 December % Land (Distinguish between freehold and leasehold) Building (Distinguish between freehold and leasehold) Leasehold improvements Furniture and fixtures Office equipment Computer equipment Vehicles Others (if any)
5.1.1 Disposal of fixed assets
a) cost or valuation, as the case may be; b) the book value; and c) the sale price and the mode of disposal (e.g. by tender or negotiation) and the particulars of purchaser
5.1.2 Please specify the value of assets held by third parties and assets with zero values.
(Current Year) (Prior Year)
Rupees in '000
5.2 Capital Work-In-Progress
Civil works - -
Advances to suppliers - -
Others (please specify) - -

• -
  Disclose if the book value of the asset or assets sold exceeds in aggregate fifty thousand rupees, particular of the assets and in aggregate:
  (Rupees in '000)
  Current year
  Prior year
  Where assets have been revalued, the first balance sheet subsequent to the revaluation shall show the original cost; the revalued amount; the date and amount of the revaluation and the basis thereof; name and qualification of the valuer who should be an independent person competent to do so; the nature of any indices used to determine revaluation; and the carrying amount of each class of property and equipment that would have been included in the financial statements had the assets not been carried at revalued amount. Every balance sheet subsequent to the revaluation shall show the total amount of the revaluation; and the carrying amount of each class of property and equipment that would have been included in the financial statements had the assets not been carried at revalued amount.

6 Intangible assets
Cost Amortisation Written down Amortisation
As at Additions Adjustments As at As at For the year Adjustments As at value as at period 1 January /(Disposals) 31 December 1 January 31 December 31 December Computer softwares Others (Please specify) Current year Prior year Disclose the classification of intangible as either finite or infinite life and basis of amortisation for each intangible asset. Disclose description, the carrying amount and remaining amortization period of any individual intangible asset that is material to the financial statements as a whole; the existence and carrying amounts of intangible assets whose title is restricted and the carrying amounts of intangible assets pledged as security for liabilities; a description of any fully amortized intangible asset that is still in use; and a brief description of significant intangible assets controlled by the enterprise but not recognized as assets because they did not meet the recognition criteria. In the case of sale of fixed assets (otherwise than through a regular auction) made to chief executive or a director or an executive or a shareholder holding not less that ten percent of the voting shares of the company or any related party, irrespective of the value, and in the case of any other person if the original cost or the book value of the asset or assets in aggregate exceeds Rupees one million or two hundred fifty thousands respectively (whichever is lower) disclose (a) particulars of the assets (b) cost or revalued amount (c) the book value (d) the sale price (e) the mode of disposal (e.g. by tender or negotiation) and(f) the particulars of the purchaser. Disclose the existence of any restrictions/ discrepancies on the title along-with amount involved; and the existence of any pledge/ mortgage along-with the nature of facilities obtained against such pledge/ mortgage.

7 INVESTMENT PROPERTIES ( where cost model is followed) Written down Useful As at Additions As at As at For the As at value as at life 1 January (disposals) 31 December 1 January year 31 December 31 December Land (Distinguish between freehold and leasehold) Building (Distinguish between freehold and leasehold) Other installations

---

Written down Useful
As at Additions As at As at For the As at value as at life 1 January /(disposals) 31 December 1 January year 31 December 31 December Land (Distinguish between freehold and leasehold) Building (Distinguish between freehold and leasehold) Other installations

---

7.1 The market value of the investment properties as per valuation carried out by professional valuers in _____ is
Rs. ________
(Current
Year)
(Prior
Year)
Rupees in '000
7 INVESTMENT PROPERTY (where fair value model is followed) Opening net book value - - Additions and capital improvements / (disposals) - - Unrealized Fair value gain / (loss) 7.1 - - Closing net book value - - 7.1 (i) a description of the investment property; (ii) an explanation of why fair value cannot be determined reliably; and (iii) if possible, the range of estimates within which fair value is highly likely to lie. (Disclose the fair value of investment property. In the exceptional cases, when a Company cannot determine the fair value of the investment property reliably, it shall disclose:) Prior year Cost Depreciation (Rupees in '000) Current year Cost Depreciation

(Current
Year)
(Prior
Year)
Rupees in '000
8 INVESTMENTS IN SUBSIDIARY AND ASSOCIATE
Beginning of year - -
Acquisition / (Disposal) of subsidiary / investment in associate - Note --- - - Share of (loss)/profit - - Less: Dividend Received Changes in Comprehensive income - Note --- - - End of year - - The company’s interests in its subsidiaries and associates were as follows:

Cost impairment
/ provision
Carrying value Cost impairment
/ provision
Carrying value
Related parties
Listed shares
Unlisted shares
Mutual funds
Others
Listed shares
Unlisted shares
Mutual funds
Cost impairment
/ provision
Carrying value
Related parties
Term Finance Certificates 10.1
Others
Term Finance Certificates 10.2
10.1
Others
10.2 Term Finance Certificates
Current year Prior year
INVESTMENTS IN EQUITY SECURITIES - (DISTINGUISH BETWEEN AT FAIR VALUE THROUGH PROFIT AND LOSS AND AVAILABLE FOR SALE) INVESTMENTS IN DEBT SECURITIES - (DISTINGUISH BETWEEN AT FAIR VALUE THROUGH PROFIT AND LOSS, HELD TO MATURITY AND AVAILABLE FOR SALE)

10.1
11 INVESTMENTS IN TERM DEPOSITS
(Current
Year)
(Prior
Year)
Rupees in '000
Held to maturity
Deposits maturing within 12 months
Deposits maturing after 12 months

• -
  Value of investments in unlisted investees in which the company holds ten percent or more of the investee's total equity should be calculated by reference to net assets of the investee on the basis of the last available audited accounts in the case of unlisted companies and modarabas and last available accounts incase of other investees together with the period of such accounts shall be disclosed. Disclose particulars of provision for impairment and the movement in the said account in the year. There shall be stated the name of each company, modaraba, firm, government, municipal committee and local authority; in case of shares, various classes and different paid-up values together with the terms of redemption, if any, in case of preference shares; in case of modaraba and redeemable capital the number of certificates and the nominal value of each certificates; and in case of debentures and bonds the terms of redemption, if any, and the rate of interest. If investment is made in unlisted companies and modarabas (other than associates and subsidiaries) there shall be stated the name of the chief executive, managing agent or modaraba company. Percentage of the equity held by the company in an investee company or modaraba or a controlled firm or other associated undertaking, where it exceeds ten percent of the investee's total equity, shall be disclosed.

(Current
Year)
(Prior
Year)
Rupees in '000
12 LOANS AND OTHER RECEIVABLES - Considered good Loans to related parties - - Receivable from related parties - - Rent receivable - - Accrued investment income Security deposit - - Advance to supplier - - Agents commission receivable Loans to employees - - Other receivable

• -

INSURANCE / REINSURANCE RECEIVABLES -
(Current
Year)
(Prior
Year)
Rupees in '000
Due from insurance contract holders - -
Less provision for impairment of receivables from - Insurance contract holders - - Due from other Insurers / reinsurers - - Less provision for impairment of due from other insurers / reinsurers - -

• -
  Less: provision for impairment of loans and receivables If the loans to related parties are interest bearing, disclose the interest rate. Also disclose the effective interest rates on such loans. Unsecured and considered good

14 RETIREMENT BENEFIT OBLIGATIONS
Disclose the general description of the type of plans, changes in the plans, if any, and effect of any changes in the plans during the period; employees covered; and the accounting policy for recognising actuarial gains and losses. Disclose when was the latest actuarial valuation of the defined benefit plans was conducted and specify the method used for valuation. Details of the defined benefit plans are:

(Current
Year)
(Prior
Year)
15 DEFERRED TAXATION
Deferred debits arising in respect of
(To be specified)
Deferred credits arising due to
(To be specified)
(Current
Year)
(Prior
Year)
16 PREPAYMENTS
Prepaid reinsurance premium ceded - -
Prepaid rent - -
Prepaid miscellaneous expenses - -
Others (if any) - -

• -
  (Current
  Year)
  (Prior
  Year)
  17 CASH & BANK
  Cash and Cash Equivalent
  Cash in hand - -
  Policy & Revenue stamps, Bond papers - -
  Cash at bank
• Current account - -
• Savings account - -

(Current
Year)
(Prior
Year)
Cash and cash equivalents - -
Short term borrowings of upto three months including running finance, if any - -

• -
  Cash and short term borrowing include the following for the purposes of the cash flow statement:
  Rupees in '000
  Rupees in '000
  Rupees in '000
  Rupees in '000

18 SHARE CAPITAL
18.1 Authorized Capital
(Current Year) (Prior Year)
Rupees in '000
Ordinary shares of Rs._______ each
18.2 Issued, subscribed and paid-up share capital
(Current Year) (Prior Year)
19 RESERVES Rupees in '000
Capital reserves
Reserve for exceptional loss - -
Revenue reserves
General reserve - -
Others (Please specify) - -
(Current Year) (Prior Year)
Rupees in '000
20 BORROWINGS
Bank loans - -
Liabilities against assets subject to finance lease 21.1 Other (please specify) - - Total borrowings - - Current portion - - Non-current portion - -
20.1 Liabilities against assets subject to finance lease
Disclose information about the extent and nature, including significant terms and conditions that may affect the amount, timing and certainty of future cash flows. Further, disclose the nature and carrying amount of the assets pledged as security. Disclose information about the purchase and reissue of treasury shares in the period and the values thereof. Disclose the interest rates used as the discounting factor; the existence and terms of renewal or purchase options and escalation clauses; restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing; and any other material terms.

(Current Year) (Prior Year)
Rupees in '000
21 INSURANCE / REINSURANCE PAYABLES
Due to insurance contract holders - -
Due to other insurers / reinsurers - -

• -
  22 OTHER CREDITORS AND ACCRUALS
  Agents commission payable
  Federal Excise Duty / Sales Tax - -
  Federal Insurance Fee - -
  WWF - -
  Payable to related parties - -
  Accrued expenses - -
  Other tax payables - -
  Unpaid and Unclaimed Dividend - -
  Others (please specify) - -

(Specify the nature of provision recorded and the reason thereof.)
23 CONTINGENCY(IES) AND COMMITMENT(S)
23.1 Commitments for the acquisition of operating fixed assets
(Current Year) (Prior Year)
Rupees in '000
23.2 Commitments in respect of operating leases
Not later than one year - -
Later than one year and not later than five years - - Later than five years - - All Contingent liabilities other than those arising from contract with policy holders shall be disclosed, unless the possibility of any outflow in settlement is remote, disclose for each class of contingent liability (including taxation contingency) at the balance sheet date a brief description of the nature of contingent liability and, where practicable an estimate of its financial effect; an indication of the uncertainties relating to the amount or timing of any outflow; and the possibility of any reimbursement. Where any of the information required above is not disclosed because it is not practicable to do so, disclose that fact. Disclose a general description of the lessee's significant leasing arrangements including, but not limited to, the basis on which contingent rent payments are determined; the existence and terms of renewal or purchase options and escalation clauses; and restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing.

(Current
Year)
(Prior
Year)
Rupees in '000
24 NET INSURANCE PREMIUM
Written Gross Premium - -
Add: Unearned premium reserve opening - -
Less: Unearned premium reserve closing - -
-
Premium earned - -
Less :Reinsurance premium ceded - -
Add:Prepaid reinsurance premium opening - -
Less:Prepaid reinsurance premium closing - -
Reinsurance expense - -

• -
  25 NET INSURANCE CLAIMS EXPENSE
  Claim Paid - -
  Add : Outstanding claims including IBNR closing 25.1 - - Less: Outstanding claims including IBNR Opening - - Claims expense - - Less: Reinsurance and other recoveries received - -

Reinsurance and other recoveries revenue - -

• -
  25.1 Claim Development
  An insurer also need not to disclose this information if uncertainty about the amount and timing of claims payments is usually resolved within one year. Actual claims compared to last four years will be disclosed as follows if there is still uncertainty about the amount and timing of the claims payments for material claims. The disclosure is not required if there is no change in previous estimates as uncertanity regarding amount of material claim payments do not exist. The disclosed balance may not need to be reconciled with the balance reported in the statement of financial position. Add: Reinsurance and other recoveries in respect of outstanding claims net of impairment (if any) opening Less: Reinsurance and other recoveries in respect of outstanding claims net of impairment (if any) closing

(Current
Year)
(Prior
Year)
Rupees in '000
26 NET COMMISSION EXPENSE / ACQUISITION COST
Commission paid or payable - -
Add: Deferred commission expense opening - -
Less:PDeferred commission expense closing - -
Net Commission - -
Less: Commission received or recoverable - -
Add: Unearned Reinsurance Commission - -
Less: Unearned Reinsurance Commission - -
Commission from reinsurers - -

• -
  (Current
  Year)
  (Prior
  Year)
  Rupees in '000
  27 MANAGEMENT EXPENSES
  Employee benefit cost - note 27.1 - -
  Traveling expenses - -
  Advertisements & sales promotion - -
  Printing and stationery - -
  Depreciation - -
  Amortisation - -
  Rent, rates and taxes - -
  Legal and professional charges - business related - - Electricity, gas and water - - Entertainment - - Vehicle running expenses - - Office repairs and maintenance - - Bank charges - - Postages, telegrams and telephone - - Insurance Ombudsman expense contribution Annual Supervision fee SECP Bad and doubtful debts - - Miscellaneous (separately identify individual expense head if more than 5% of total) - -

27.1 Employee benefit cost
Salaries, allowance and other benefits - -
Charges for post employment benefit - -

• -

(Current
Year)
(Prior
Year)
Rupees in '000
28 INVESTMENT INCOME

• Dividend income - -
• Other (please specify) - -
• Return on debt securities - -
• Other (please specify) - -
• Return on term deposits - -
• Other (please specify) - -

Net realised gains/(losses) on investments
Available for sale financial assets
Realised gains on:
-Equity securities - -
-Debt securities - -
Realised losses on:
-Equity securities - -
-Debt securities - -

• -
  Net unrealised gains/(losses) on investments

Total investment income - -
Less: Impairment in value of available for sale securities -Equity Securities - - -Debt Securities - - Less: Investment related expenses - -

• -
  Income from equity securities (Separate classification for AFS and held for trading) Net unrealised gains / (losses) on investments at fair value through profit or loss (designated upon initial recognition) Income from debt securities (Separate classification for AFS and held to maturity) Income from term deposits Net unrealised gains / (losses) on investments at fair value through profit or loss (held for trading purposes)

29 RENTAL INCOME
Rental income - -
Less: Expenses of investment property - -

• -
  30 OTHER INCOME
  Return on bank balances
  Gain on sale of fixed assets - -
  Return on loans to employees - -
  Liabilities written back - -
  Miscellaneous (please specify individual head if - - more than 5% of total)

(Current
Year)
(Prior
Year)
Rupees in '000
31 OTHER EXPENSES
Legal & professional fee other than business related - - Auditors' remuneration - note 31.1 - - Subscription - - Registration fee - - Expenses on bonus issue - - Donations - - Workers Welfare Fund Others (Please specify separately if more than 5% of total) - -

• -
  (Current
  Year)
  (Prior
  Year)
  31.1 Rupees in '000
  Audit fee - -
  Fee for audit of provident, pension, gratuity and other funds - - Special certifications and sundry advisory services - - Tax services - - Out-of-pocket expenses - -

In case of donations where any director/ executive or their spouse has interest in the donee, disclose the names of such directors / executive, their interest in the donee and the names and addresses of all donees irrespective of the amount of donation. Auditors' remuneration In case of joint auditors the above information should be shown separately for each of the joint auditors.

(Current
Year)
(Prior
Year)
Rupees in '000
32 FINANCE COST
Mark-up on short term financing - -
Bank charges (financing related) - -
Mark-up on finance leases - -
Exchange loss - -

• -
  33 TAXATION
  For the year
  Current - -
  Deferred - -
  For the prior year(s)
  Current - -
  Deferred - -
  33.1 Relationship between tax expense and accounting profit
  (i)
  (ii)
  (Current
  Year)
  (Prior
  Year)
  34 EARNINGS PER SHARE
  Profit (after tax) for the year
  Weighted average number of ordinary shares (adjusted for the effects of all dilutive potential ordinary shares) Diluted earnings per share a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis on which the applicable tax rate is computed. Company should also disclose reconciliation between diluted earnings per share and basic earnings per share. Rupees Distinguish, where applicable, between the provision for Pakistan taxation and the provision for taxation elsewhere. Disclose an explanation of changes in the applicable tax rate compared to the previous accounting period. An explanation of the relationship between tax expense (income) and accounting profit in either or both of the following forms:
  a numerical reconciliation between tax expense (income) and the product of accounting profit multiplied by the applicable tax rate(s), disclosing also the basis on which the applicable tax rate(s) is (are) computed; and/ or

35 COMPENSATION OF DIRECTORS AND EXECUTIVES
36 RELATED PARTY TRANSACTIONS a) the nature of the related party relationship; b) the type of transactions; c)

i)

Also disclose short term employee benefits, post employment benefits, other long term benefits, termination benefits and share (stock options) based payments. Executives mean employees, other then the chief executive and directors, whose basic salary exceed five hundred thousand rupees in a financial year. amount or appropriate proportions of (this should be disclosed in the foot note to the relevant outstanding items in the notes to the accounts):
each of loans and advances, deposits and acceptances and promissory notes; disclosure may include the aggregate amounts outstanding at the beginning and end of the period, as well as advances, deposits, repayments and other changes during the period; Disclose related party relationships where control or significant influence exists, irrespective of whether transactions have taken place between the parties. If there have been transactions between related parties, disclose:

154 ii) iii)

iv) d) e)

the elements of transactions necessary for an understanding of the financial statements of the company. the amount of the expense recognized in the period for losses on loans and advances and the amount of the provision at the balance sheet date; and each of principal types of income/mark-up, interest expense and commissions paid; irrevocable commitments and contingencies and commitments arising from off-balance sheet items; provisions for doubtful debts related to the amount of outstanding balances; and

37 SEGMENT INFORMATION
Segment information in respect of the following is to be given at a minimum. In case business included in Miscellaneous is 10% or more separate disclosure is expected. In addition disclosures in accordance with IFRS 8 regarding major customers etc will also be given in this note. Rupees in '000

Disclose the net insurance premium information on country basis for the current and prior year. Rupees in '000

38 MOVEMENT IN INVESTMENTS
39 MANAGEMENT OF INSURANCE RISK AND FINANCIAL RISK
39.1 Insurance risk
a) Frequency and severity of claims
The disclosure regarding concentration risk will form part of this note.
Disclose how the Company manages these risks for e.g. through its underwriting strategy, adequate reinsurance arrangements and proactive claims handling. Disclose the objective of each risk mitigating factor along with the details as to how these mitigating factors are applied to each insurance contract. This information shall include qualitative as well as quantitative criteria used for such risk management. Specify what is the risk under any insurance contract for e.g. the possibility that the insured event occurs and the uncertainty of the amount of the resulting claim. Also disclose the mitigating factors for such risks.

b) Sources of uncertainty in estimation of future claim payments c) Process used to decide on assumptions d) Changes in assumptions e) Sensitivity analysis 39.2 a) b)
39.3 Credit risk
The disclosure regarding credit rating will form part of this note.
39.4 Capital management
Disclose the risks associated with these insurance contracts and variables that complicate quantitative sensitivity analysis. Specify the details about separate assumptions and the basis on which such assumptions are used by the company. Disclose the changes in assumptions if any, the qualitative and quantitative information in this respect and the monetary impact of such changes on the statement of comprehensive income. Also disclose why such changes in assumptions have been incorporated in our estimation. In respect of all the variables affecting the estimates reported in the financial statements. Disclose the process for estimation of IBNR and its provisioning mechanism in detail. Disclose the criteria for estimation of cost of unpaid claims (both reported and not), the estimation techniques used by the company. Disclose how the techniques are used by the company. Disclose the claims recognition criteria and the claim settlement mechanism in this respect. Specify the factors that affect the claim liabilities and how such liabilities are affected. Also specify what cost components are included as claim expense. An entity shall disclose information that enables users of its financial statements to evaluate the entity’s objectives, policies and processes for managing capital. Financial risk Maturity profile of financial assets and liabilities:
Sensitivity analysis - interest rate risk
Sensitivity analysis - equity risk

Current year
Rupees in thousand
Assets
Property and equipment -
Intangible assets -
Investment property -
Investments in subsidiary and associate (applicable where equity accounting is followed) - Investments Equity securities - Debt securities - Term deposits Loans and other receivables - Insurance / Reinsurance receivables - Reinsurance Recoveries against O/S claims - Salvage recoveries accrued - Deferred Commission Expense - Deferred taxation - Prepayments - Cash & Bank - Total Assets (A) - In-admissible assets as per following clauses of section 32(2) of the Insurance Ordinance, 2000 (a) - (b) - … - … - … - .. - . - (U)-(i) - (U)-(ii) - (U)-(iii) - (v) - (w) - Total of In-admissible assets (B) - Total Admissible Assets (C=A-B) - Total Liabilities Underwriting Provisions - Outstanding claims including IBNR - Unearned premium reserves - Premium deficiency reserves - Unearned commission income - Retirement benefit obligations - Deferred taxation - Borrowings - Premium received in advance - Insurance / Reinsurance Payables - Other Creditors and Accruals Income tax liabilities Total Liabilities (D) - Total Net Admissible Assets (E=C-D) - Minimum Solvency Requirement (higher of following) - Method A - U/s 36(3)(a) Method B - U/s 36(3)(b) Method C - U/s 36(3)(c) Excess / Deficit in Net Admisible Assets over Minimum Requirements - - - - STATEMENT OF SOLVENCY (TO BE PRESENTED IN THE FINANCIAL STATEMENTS BY LISTED CONCERNS ONLY)

41 CORRESPONDING FIGURES
Disclose the reclassification from and to of the prior period figures.
42 SUBSEQUENT EVENTS - NON ADJUSTING

• Dividend
• Issue of bonus shares
• Transfer to / (from) reserves
  43 DATE OF AUTHORISATION FOR ISSUE
  44 GENERAL
  Chief Executive Officer Director Director Chairman The figures in the financial statements may be rounded off to the nearest thousand.

ANNEXURE III
Principles for Calculation of Solvency Margin of Life Insurers [See Rule 14]

1. Each life insurer is required to maintain an excess of admissible assets over liabilities, including
   policyholder liabilities, of:
   (a) a fixed amount as specified in Rule 14(1)(a); plus (b) a solvency margin calculated in accordance with this Annexure, to be maintained as prescribed in Rule 14.

2. For statutory funds of life insurers set up under sub-section (5) of section 14 of the Ordinance in
   which accident and health business is written, the solvency margin as at any date would be calculated as the higher of:
   (a) 20% of earned premium revenue in the preceding twelve months, net of reinsurance expense subject to a maximum deduction for reinsurance of 50% of the gross figure; or (b) 20% of sum of liability for unexpired risk and its liability for outstanding claims, net of reinsurance subject to a maximum deduction for reinsurance in each case of 50% of the gross
   figure.

3. For other statutory funds the solvency margin shall be calculated by carrying out two exercises as
   under, and to take the higher of the two figures:
   (a) Determination of the solvency margin to be maintained in each Statutory Fund on the basis as provided in paragraphs 5 to 9 below; and (b) Requiring the appointed actuary to determine the policyholder liabilities on certain scenarios to be specified by the Commission through circular, with the margin being determined as the highest excess of the liabilities determined in any of the scenarios over those displayed in the financial statements.

4. The Commission shall specify through circular the scenarios mentioned in paragraph 3(b) above after
   consulting the Pakistan Society of Actuaries. Till the scenarios are prescribed only the first calculation shall be carried out.

5. The first calculation of the solvency margin for each Statutory Fund for business other than Accident
   and Health business would be determined in two parts (the margin being the sum of the two parts):
   (a) A proportion of the policyholder liabilities determined by the Appointed Actuary, such proportion being referred to below as the “First Factor”; and (b) A proportion of the Sum at Risk, such proportion being referred to below as the “Second Factor”.

6. The First and Second factors will depend upon the nature of underlying policies and will be as per
   Attachment 1 to this Annexure.

7. The first part for each line of business will be calculated as follows:
   K1 x Policyholder Liabilities before Reinsurance x First Factor (per Attachment 1) where K1= 0.85* or (Mathematical Reserves after Reinsurance/ Mathematical Reserves before Reinsurance), whichever is higher. [* 0.50 in case of reinsurers, carrying on life insurance - business].

8. The second part for each line of business will be calculated as follows:
   K2 x Total Sum at Risk before Reinsurance x Second Factor (per Attachment 1) where K2= 0.5 or (Sum at Risk after reinsurance/Sum at risk before reinsurance), whichever is higher; where the Sum at Risk for an individual policy is negative it is to be ignored.

9. The solvency margins mentioned in paragraphs 5 to 8 shall be partially applicable until 31 December
   2014, in that life insurers will be required to maintain at least the following proportion of the margins calculated:
   As on 31 December 2012 33%
   As on 31 December 2013 67%
   As on 31 December 2014 100%
   The calculations set out in paragraphs 2 to 9 above shall be carried out for each statutory fund separately and shall be supported by a statement to be prepared in accordance with the form given in Attachment 2, such Attachment requiring to be submitted as a part of each Financial Condition Report being submitted under section 50 of the Ordinance. In case a life insurer applies for and is granted permission by the Commission to maintain the solvency margin in its shareholders’ fund and statutory funds in aggregate (rather than within each statutory fund), than the statutory margin to be maintained in the shareholders’ fund and statutory funds in aggregate shall be the aggregate of the margin calculated for each statutory fund separately, and shall be in addition to the fixed amount prescribed under Rule 14 (1)(a).

Attachment 1 to Annexure III
FACTORS FOR DETERMINATION OF SOLVENCY MARGIN FOR LIFE INSURERS Code Type of Business Policy Types with Examples Factor 1 Factor 2 Life Risk Other 0 Non-Linked Individual Life Business 01 Conventional non-linked policies Includes both risk products (term assurances, decreasing term assurances, family income benefit, accident and disability riders [other than those written in a statutory fund in which only accident & health business is written] including waiver of premiums, and savings products (endowment assurances (participating and non-participating), whole life policies, etc.). Also includes all riders attached to these products. 4% 0.075% 0.0375% 02 Conventional riders attached to investment￾linked policies Includes all risk riders (as defined above) where the benefit payable under the rider is defined and not determined with reference to the underlying asset value and where the premium payable is in addition to the basic policy premium. 4% 0.075% 0.0375% 03 General Annuities Both immediate or deferred annuities where the amount of annuity payable is defined, with the possible exception of the addition of bonuses to be declared by the life insurer 4% 0% 0% 04 Pension 4% 0% 0% 1 Non-Linked Group Life Business 11 Group Risk Products with Premiums Guaranteed for up to a year Group life policies and related riders where the premiums are guaranteed for one year or less. 1% 0.05% 0.015%() 12 Group Risk Products with Premiums Guaranteed for more than a year Group life policies and related riders where the premiums are guaranteed for more than a year. 3% 0.1% 0.03%() 13 General Annuities Both immediate or deferred annuities where the amount of annuity payable is defined, with 4% 0% 0%

the possible exception of the addition of bonuses to be declared by the life insurer 14 Pension 4% 0% 0% 15 Group Savings Products Conventional group savings policies (eg., endowment policies priced as individual life but sold as group policies 4% 0.075% 0.0375% 2 Investment Linked Account Value Individual Life Business 21 Account Value policies with a capital guarantee Universal life policies with a capital guarantee and possible interest rate guarantee with either part or all of the interest to be credited to the policy being linked to returns on investment. No right to write down the value of the investment. 4% 0.075% 0.0375% 22 Account Value policies with a right to write down capital values Universal life policies with the interest to be credited to the policy being linked to returns on investment but with a right to write down the value of the investment. 2% 0.075% 0.0375% (*) In the case of Group non-death risk, the part of the margin calculated by applying Factor 2 shall not be less than 25% of the premium charged for the concerned risk.

Code Type of
Business
Policy Types with Examples Factor
Factor 2
Life Risk Other
3 Investment Linked Account Value Group Life Business 31 Deposit Administration Contracts with a capital guarantee Deposit Administration Contracts (typically for Group Pension Schemes) with a capital guarantee and possible interest rate guarantee with either
part or all of the interest to be credited to the
policy being linked to returns on investment. No right to write down the value of the investment. 4% 0.075% 0.0375% 32 Deposit Administration Contracts with a right to write down capital values Deposit Administration Contracts (typically for Group Pension Schemes) with the interest to be credited to the policy being linked to returns on investment but with a right to write down the value of the investment. 2% 0.075% 0.0375% 4 Investment Linked Unit Linked Individual Life Business 41 Unit Linked life policies with a maturity guarantee Unit linked policies with the policy value being linked to the value of one or more underlying funds but with a guarantee at maturity based on parameters other than the value of the underlying funds. 2% 0.075% 0.0375% 42 Unit Linked life policies without a maturity guarantee Unit linked policies with the policy value being linked to the value of one or more underlying funds and without any guarantee at maturity 1% 0.075% 0.0375% 43 Unit Linked annuities with guarantees Unit linked annuities with the annuity value being based on the value of one or more underlying funds but with a guarantee of the minimum amount payable based on parameters other than the value of the underlying funds. 2% 0% 0% 44 Unit Linked policies without a guarantee Unit linked annuities with the annuity value being based on the value of one or more underlying funds and without any guarantee of the amount of annuity to be paid. 1% 0% 0% 43 Unit Linked pensions with guarantees 2% 0% 0% 44 Unit Linked Pensions without guarantees 1% 0% 0% 5 Investment Linked Unit Linked Group Life Business 51 Managed Fund Contracts Managed Fund Contracts (typically for Group Pension Schemes) with the amount payable being linked to the value of one or more underlying funds and without any guarantee. 1% 0% 0%

Attachment 2 to Annexure III
STATEMENT OF SOLVENCY MARGINS: LIFE INSURERS
TABLE I -
REQUIRED SOLVENCY MARGIN BASED ON MATHEMATICAL RESERVES AND SUM AT RISK Code Description Mathematical Reserves before Reinsurance Mathematical Reserves after Reinsurance K1 Sum at Risk before Reinsurance Sum at Risk after Reinsurance K2 First Factor Second Factor Required Solvency Margin (1) (2). (3) (4) (5) (6) (7) (8) (9) (10) (11) Totals Notes to Completion of Table (1) K1= 0.85* or (Mathematical Reserves after Reinsurance/ Mathematical Reserves before reinsurance), whichever is higher. [* 0.50 in case of reinsurers, carrying on life insurance business]; (2) K2= 0.5 or (Sum at Risk after reinsurance/Sum at risk before reinsurance), which ever is higher;. (3) Col.(11) = [Col.(3) x Col.(5) x Col. (9)] + [Col.(6) x Col.(8) x Col. (10)]; (4) In the computation of the total sum at risk, ignore the contracts for which the sum at risk is a negative figure or does not exist; (5) Details of first and second factors:

ANNEXURE IV
Financial Condition Report Requirements
[See Rule 22]

1. Interpretation. – In this Annexure ---
   (i) “extra premium” means a charge for any risk not provided for in the minimum contract premium; (ii) “individual business” means individual insurance contracts issued on single/joint lives; (iii) “inter valuation period” means, as respects any valuation, the period of the valuation date of that valuation from the valuation date of the preceding valuation in connection with which an abstract was prepared under the Ordinance or, in a case where no such valuation has been made in respect of the class of business in question, from the date on which the insurer began to carry on that class of business; (iv) “maturity date” means a fixed date on which benefit may become payable either absolutely or contingently; (v) “office yearly premium” means regular premium (excluding extra premiums which are required to be shown separately) payable by the policyholder to secure the basic benefits under the policy in a policy year; (vi) “riders” or “rider benefits” means add-on benefits, which are in addition to basic benefits under a policy; and (vii) “valuation date” means as respects any valuation the date as at which the valuation is made.
2. Requirements Applicable to FCR. – (1) An insurer shall prepare the following statements which shall
   be annexed to the financial condition report separately for each statutory fund annually. Where financial condition report relates to a shorter period the forms may be adjusted accordingly:- (a) in respect of Investment Linked Business:
   (i) Form LB-1;
   (ii) Form LB-2;
   (iii) Form LB-3;
   (iv) Form DD;
   (v) Form DDD; and
   (vi) Form DDDD;
   (b) in respect of Non-Investment Linked Business:
   (i) Form NLB-1;
   (ii) Form DD;
   (iii) Form DDD; and
   (iv) Form DDDD;
   (c) in respect of Universal Life and Universal Life Hybrid Business:

(i) Form ULB-1;
(ii) Form DD;
(iii) Form DDD; and
(iv) Form DDDD;
(d) in respect of Accident and Health Insurance Business, - (i) Form NLB-1. (e) Summary statements:
(i) Form H;
(ii) Form I; and
(iii) Statement of Composition and Distribution of surplus in respect of policyholders’ fund as specified under Clause 7. (2) Each financial condition report shall state and, wherever applicable, provide written evidence with respect to the following:- (a) the date at which the valuation of policyholders liabilities was performed; (b) the Statement required under sub-section (3) of section 50 of the Ordinance; (c) a statement of any reservations or qualifications, including any material matters and reasons thereof in which the appointed actuary has been unable to comply with any relevant professional standards issued by the Pakistan Society of Actuaries; (d) a brief description of:– (i) The total business underwritten by the life insurer and its respective share with respect to each statutory fund in which it is written; (ii) the reinsurance arrangements of the life insurer; (iii) the assets of the life insurer; (iv) the investment policy of the life insurer; (v) where applicable, the unit pricing policy of the life insurer ; and (vi) Such other matters with respect to the business of the life insurer as the appointed actuary believes should be brought to the attention of the life insurer; (e) a statement of the appointed actuary’s opinion with respect to the adequacy of premium rates and charges in respect of policies underwritten by the life insurer. This shall relate to both policies in force at the valuation date and policies being underwritten after the valuation date. In the case of participating policies the appointed actuary shall state whether premium rates applicable to new business are capable of supporting bonus rates last declared and, if not, the steps taken to manage policyholders’ reasonable expectations; (f) a statement of the appointed actuary’s valuation of policyholders’ liabilities according to the minimum valuation basis prescribed under sub-section (5) of section 50 of the Ordinance including details of:
(i) the general principle adopted in the valuation of each class of business and group of policies in force at the valuation date and the reasons thereof;

(ii) the methods adopted in the valuation;
(iii) policies which under the valuation methods would be treated as an asset, and actions taken to identify and eliminate such assets from the valuation; (iv) bases adopted for mortality and morbidity; and (v) procedure adopted for currency exchange rates and justification thereof. (g) where sub-section (6) of section 50 applies, a statement of the appointed actuary’s valuation of policyholders’ liabilities under that sub-section; (h) Where applicable a statement of the appointed actuary’s determination of the surplus including surplus arising on participating life insurance business, surplus adjustment, and expense adjustment; (i) a statement by the appointed actuary, expressing an opinion as to whether:- (i) the basis of distribution of revenues and expenses between the statutory and other funds of the life insurer and between classes of policyholder within statutory funds and appropriateness of such distribution; (ii) the surplus attributed to participating policyholders has been determined in accordance with provisions of the Ordinance; (iii) in relation to its each statutory fund, whether the life insurer has complied as of valuation date with the provisions of sub-sections (3), (4) and (5) of section 35 of the Ordinance, relying on the audited statements of admissible assets; and (iv) the life insurer has adequate capital to continue its business at planned levels for a period of not less than five years. (j) a statement by the appointed actuary to the effect that:- (i) the data furnished by the principal officer has been included in conducting the valuation of liabilities for the purpose of investigation; (ii) reasonable steps have been taken to ensure the accuracy and completeness of the data; (iii) he has complied with the provisions of the Ordinance; (iv) he has complied with guidance notes issued by the Pakistan Society of Actuaries; and (v) in his opinion, the mathematical reserves are adequate to meet the insurer’s future commitment under the contracts.
3. Further information. – In addition to the information required to be provided the following
information shall also be appended:-
(i) return on assets as specified under clause 4; (ii) distribution of surplus as specified under clause 5; (iii) principles adopted in distribution of surplus as specified under clause 6; and (iv) miscellaneous, if any.
4. Returns on assets. – (1) The average gross rates of return yielded by the assets may be determined
expressing the investment income as percentage of the mean fund. [i = 2 x I / (A + B – I); where i is the gross yield; I = investment income; A = the assets at the beginning of the financial year, and B = the assets at the end of the financial year]. A more accurate determination may also be carried out in which case this should be supported by an explanation of the method used.

(2) The average gross rates of return, referred to under sub-clause (1), shall be furnished for each statutory fund maintained by a life insurer. In the case of investment linked funds the returns shall be provided separately for each fund and for non-linked assets.
5. Distribution of surplus. – The basis adopted in the distribution of surplus as between the
shareholders and the policyholders, and whether such distribution was determined by the instruments constituting the company, or by its regulations or by-laws or how otherwise shall be mentioned.
6. Principles adopted in distribution of profits. – The general principles adopted in distribution of
profits among policyholders, including statements on following points, shall be furnished:- (i) whether the principles were determined by instruments constituting the life insurer, or by its regulations or by-laws or how otherwise; (ii) the number of years for which premium is to be paid, period to elapse and other conditions to be fulfilled before a bonus is allocated; (iii) whether the bonus is allocated in respect of each year’s premium paid, or in respect of each calendar year or year of assurance or how otherwise; and (iv) whether the bonus vests immediately on allocation, or, if not, conditions of vesting.
7. Statement of composition of surplus and distribution of surplus in respect of policyholders’ fund.
– (1) A statement showing total amount of surplus arising during the inter- valuation period and the allocation of such surplus, shall be furnished separately for each statutory fund as per Form L. (2) A statement of Specimen of Bonuses allotted to policies for one thousand rupees together with the amounts apportioned under the various manners in which the bonus is receivable, for each type of participating products, shall be furnished.

FORM DD
(See Clause 2)
CLASSIFIED STATEMENT OF LIFE INSURANCE POLICIES FOR THE YEAR ENDED 31 ST DECEMBER, 20__ (Direct Business plus reinsurance accepted, if any) Name of Insurer:
Statutory Fund:
New business transacted during the year
Total business in force at the end of the year Item No.
Description
Number of policies
Sums
Assured
Annuity pa
Annualized
Premium
Single
Premiums
Number of policies
Sum
Assured
Annuity pa
Vested
Bonus
Annualized
Premium
Single
Premium
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) A An Individual Life Business (a) Regular Premium Contracts; (b) Single Premium Contracts; (c) Others B Group Business (a) Group Policies with Cash Value (b) Group Policies without Cash Values C Annuity Business (a) Immediate Annuities (b) Deferred Annuities Notes to Form DD￾1. All amounts must be furnished in thousands of Pak rupees.
2. In respect of Group Business, number of group schemes shall be furnished under the column:
‘number of policies’.
3. ‘Premium’ refers to Annualised Premium.
4. ‘Single Premium’ includes consideration for immediate or deferred annuities and all other premiums
paid at the outset of the contracts and no subsequent premium is payable.
5. All amounts stated shall be total gross amounts without taking into account reinsurance ceded or
accepted.
6. Column (2) Item A(c) “Others” includes paid-up contracts where no premium is payable in future.
7. Annualized premiums shall be calculated as modal installment premium multiplied by the number
of installments payable in a year. For policies which are subject to increase, the annualized premium shall reflect the premium amount at the date of the valuation.

FORM DDD
(See Clause 2)
ADDITIONS TO AND DELETIONS FROM POLICIES FOR THE YEAR ENDED 31 st December, 20__ Name of Insurer:
Statutory Fund:
Item
No. Description
Number of policies
(Individual
Business)
Sum Assured
(Individual
Business)
Annuity pa
Reversionary bonus additions
Annualized
Premiums
Single
Premium
(1) (2) (3) (4) (5) (6) (7) (8)
1 Policies at the beginning of the period
ADDITIONS during the period:
New Policies issued
3 Old policies revived/reinstated
4 Old policies changed and increased
5 Bonus additions allotted/increases
6 Total additions (Sum of items 2 to 5)
DELETIONS during the period
By death
8 By survivance or the happening of contingencies insured against, other than death 9 By expiry of term under temporary insurance 10 By surrender of policy 11 By surrender of bonus 12 By forfeiture or lapse 13 By change and decrease 14 By being not taken up 15 Total discontinued: (Sum of items 7 to 14) 16 Total existing at the end of the period:
[(1) + (6) – (15)]
Notes to Form DDD￾1. All amounts must be furnished in thousands of Pak Rupees.
2. All amounts stated shall be total gross amounts without taking into account of re-insurances ceded
or accepted.
3. Annualized premiums shall be calculated as a modal installment premium multiplied by the number
of installments payable in a year. For policies which are subject to increase the Annualized Premium shall reflect the premium amount at the date of valuation, increases being reflected in row 5. FORM DDDD (See Clause 2)

PARTICULARS OF POLICIES FORFEITED OR LAPSED IN THE LAST YEAR UNDER REVIEW AND OF POLICES REVIVED AND REINSTATED FOR FULL BENEFITS CLASSIFIED ACCORDING TO THE YEAR IN WHICH THEY WERE ISSUED ---FOR THE YEAR ENDED 31 ST December 20__. Name of Insurer:
Statutory Fund:
Ite m
No
Year in which policies were issued POLICES
FORFEITED/LAPSED
POLICIES REVIVED AND
REINSTATED FOR FULL
BENEFITS
Number of polices
Sum Assured
Annuity pa
Annualized
Premium
Number of polices
Sum Assured
Annuity pa
Annualized
Premium
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
1 Year ending __ , being the year under review 2 Year ending __ , being the year previous to that under review 3 Year ending __ , being the year previous to that under review … 4 Year ending __ , being the year previous to that under review 5 Year ending __ , being the year previous to that under review 6 Year ending __ , being the year and earlier Notes to Form DDDD￾1. This form shall be completed for all regular premium individual life policies.
2. All amounts must be furnished in thousand of Pak Rupee.
3. All amounts stated shall be total gross amounts without taking into account of re-insurance ceded
or accepted.
4. For Col (2), for instance, valuation date is 31.12.2010. Item 01 should relate to the year ending on
31.12.2010. Item 02 should relate to the year ending on 31.12.2009. Item 03 should relate to the
year ending on 31.3.2008, and so on. Item 06 should relate to the year ending on 31.12.2005 and earlier.

FORM LB-1
(See Clause 2)
PARTICULARS OF POLICIES AND VALUATION DETAILS AS AT 31 st December, 20__. (Direct Business plus reinsurance accepted less reinsurance ceded) Name of Insurer:
Statutory Fund:
PARTICULARS OF POLICES VALUATION DETAILS
Item
No.
Description
Number of policies
Sum Assured Office yearly
Premium
Unit
Liabilities
Non Unit
Liabilities
Mathematical
Reserves
(1) (2) (3) (4) (5) (6) (7) (8)
1 (A) Insurance
Product:
i) Regular premium ii) Single premium iii)Fully paid up iv) Reduced paid up (B) Insurance Product:
i) Regular premium ii) Single premium iii)Fully paid up iv) Reduced paid up 2 Rider benefits, specify ……… 3 Other adjustments, specify 4 Total before reinsurance 5 Deduct reinsurance ceded 6 Total after reinsurance Note to Form LB-1 -

1. Particulars have to be given separately for each product for which separate approval has been obtained
   from the SECP.
2. All amounts should be in thousands of Pak Rupees.
3. Column (8) = Column (6) + Column (7).

FORM LB-2
(See Clause 2)
STATEMENT OF NET ASSET VALUES FOR THE UNIT LINKED FUNDS MAINTAINED BY THE INSURER FOR ITS LINKED BUSINESS FOR THE FINANCIAL YEAR ENDED 31 ST DECEMBER 20____ Name of Insurer:
Statutory Fund:
Item
No.
Description Unit Linked
Fund (1)
United
Linked Fund
(2)
Unit Linked
Fund (3)
…
Total
(1) (2) (3) (4) (5) (6) (7)
1 Fund brought forward
2 Value of creation of units
3 Increase (decrease) in value of investments in the financial year 4 Other income 5 Total income (Sum 1 to 4) 6 Value of cancellation of units 7 Management charges 8 Tax paid 9 Other expenditure 10 Increase (decrease) in provisions 11 Total expenditure (Sum 6 to 10) 12 Fund carried forward 13 Total Number of Units:
14 Net Asset Value per Unit
Notes to Form LB-2:
1) All amounts must be in thousands of Pak Rupees.

FORM LB-3
(See Clause2)
STATEMENT OF ANALYSIS OF UNITS IN UNIT LINKED FUNDS AS AT 31 DECEMBER 20___ Name of Insurer:
Statutory Fund:
ITEM
NO.
DESCRIPTION
NUMBER OF UNITS IN
Unit Linked
Fund 1
Unit Linked
Fund 2
Unit Linked
Fund 3
……
Total
(1) (2) (3) (4) (5) (6) (7)
1 a) Insurance Product 1
2 b) Insurance Product 2
3 c) Insurance Product 3
4 Total

FORM NLB-1
(See Clause 2)
PARTICULARS OF POLICIES AND VALUATION DETAILS AS AT 31 st December 20___. (Direct Business plus reinsurance accepted less reinsurance ceded) Name of Insurer:
Statutory Fund:
PARTICULARS OF POLICIES VALUATION
Item
No.
Description
Number of policies
Sums Assured
Annuity pa
Vested Bonuses
Office Yearly
Premium
Net Yearly
Premium
Sum Assured
Vested Bonuses
Annuity pa
Office Yearly
Premium
Net Yearly
Premium
Mathematical
Reserves excluding cost of bonuses allocated
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1 (a) Insurance Product:
i) Regular premium ii) Single premium iii) Fully paid up iv) Reduced paid up (b) Insurance Product:
i) Regular premium ii) Single premium iii) Fully Paid up iv) Reduced paid up 2 Rider benefits, specify 3 Other adjustments, specify 4 Total before reinsurance 5 Reinsurance ceded 6 Total after Reinsurance Note to Form NLB-1:

1. All amounts should be in thousands of Pak Rupees.
2. Particulars have to be given separately for each product for which separate approval has been obtained from the SECP.
3. Information relating to insurance products shall be given in the following order of insurance products, wherever required:
   Whole Life Assurances.
   Endowment Assurances.

Anticipated Endowment Plans (Money Back Plans).
Pure Endowments.
Term Insurance Contracts.
Group Term Insurance Contracts.
Group Endowment Contracts.
Others (specifying each).

FORM ULB 1
(See Clause 2)
PARTICULARS OF POLICIES AND VALUATION DETAILS AS AT 31 DECEMBER 20___ (Direct Business plus reinsurance acceptance less reinsurance ceded) Name of Insurer:
Statutory Fund:
PARTICULARS OF POLICES VALUATION DETAILS
Item
No.
Description
Number of polices
Sum Assured Office yearly
Premium
Fund
Liabilities
Non Fund
Liabilities
Mathematical
Reserves
(1) (2) (3) (4) (5) (6) (7) (8)
1 (A) Insurance
Product:
i) Regular premium ii) Single premium iii)Fully paid up iv) Reduced Paid up 2 (B) Insurance Product:
i) Regular premium ii) Single premium iii)Fully paid up iv) Reduced paid up 3 Rider Benefits, specify ……… 4 Other adjustments, specify 5 Total before reinsurance 6 Deduct reinsurance ceded 7 Total after reinsurance Note to Form ULB-1 -

1. Particulars have to be given separately for each product for which separate approval has been obtained
   from the SECP.
2. All amounts should be in thousands of Pak Rupees.
3. Column (8) = Column (6) + Column (7).

FORM H
(See Clause 2)
SUMMARY OF VALUATION AS AT 31 ST December, 20____.
Name of Insurer:
ITEM
NO.
CATEGORY OF
BUSINESS
COST OF BONUSES
ALLOCATED
(if applicable)
MATHEMATICAL
RESERVES
(INCLUSIVE OF COST
OF BONUSES
ALLOCATED)
(1) (2) (3) (4)
1 Statutory Fund 1
2 Statutory Fund 2
3 Statutory Fund 3
4 TOTAL
Note to Form H -

1. All amounts should be in thousands of Pak Rupees.

FORM I
(See Clause 2)
VALUATION RESULTS AS AT 31 st December, 20___
Name of Insurer:
ITEM
NO
DESCRIPTION BALANCE OF FUND
SHOWN IN BALANCE
SHEET BEFORE
TRANSFER TO/FROM
SHAREHOLDERS FUND
MATHEMATICAL
RESERVES
(EXCLUDING COST
OF BONUSES
ALLOCATED)
SURPLUS/
DEFICIT
(1) (2) (3) (4) (5)
1 Statutory Fund 1
2 Statutory Fund 2
3 Statutory Fund 3
4 Total
Note to Form I -

1. All amounts should be in thousands of Pak Rupees.
2. Col (5) = Col (3) - Col (4).

FORM L
(See Clause 7)
STATEMENT OF COMPOSITION OF SURPLUS AND DISTRIBUTION OF SURPLUS IN RESPECT OF POLICYHOLDERS’ FUND Name of Insurer:
Statutory
Fund 1
Statutory
Fund 2
Statutory
Fund 3
Aggregate

1. Policyholders’ Liabilities
   a. Balance at beginning of year b. Increase/(decrease) during the year
   c. Balance at end of year
2. Retained Earnings attributable to
   policyholders
   (Ledger Account A) a. Balance at beginning of year b. Surplus allocated at beginning of year
   c. Surplus adjustments (if any)
   d. Bonus allocated during the year e. Other movements (if any) f. Balance at end of year
3. Retained Earnings on par business
   attributable to shareholders – undistributable (Ledger Account B) a. Balance at beginning of year b. Surplus allocated at beginning of year
   c. Surplus adjustments (if any)
   d. Bonus allocated during the year e. Other movements (if any) f. Balance at end of year
4. Retained Earnings on par business
   attributable to shareholders – distributable (Ledger Account C) a. Balance at beginning of year b. Surplus adjustments (if any)
   c. Transfer from undistributed profits
   d. Surplus apportioned to shareholders’ fund e. Other movements (if any) f. Balance at end of year
5. Retained Earnings on other than
   participating business (Ledger Account D) a. Balance at beginning of year b. Surplus allocated in respect of the year
   c. Expense adjustment (if any)

d. Surplus apportioned to shareholders fund e. Other movements (if any) f. Balance at end of year
6. Capital contributed by shareholders’ fund
a. Balance at beginning of year b. Capital contributed during the year
c. Capital withdrawn (returned) during
the period d. Capital apportioned as bonus during the period e. Other increase/(decrease) f. Balance at end of year
7. Accumulated Deficits (if any)
a. Balance at the beginning of year b. Deficit arising during the year
c. Less: amount set off against
surpluses arising d. Balance at end of year
8. Capital contributed less any accumulated
deficits
Note to Form L –

1. All amounts shall be in thousands of Pak Rupees.

ANNEXURE V
Minimum Valuation Basis
[See Rule 23]

1. Valuation of Assets.--Every life insurer shall prepare a statement of assets in accordance with the
   requirements of Form LI and LJ of these Rules.
2. Determination of Amount of Liabilities.--Every life insurer shall prepare a statement with respect
   to its liabilities in accordance with the requirement of this annexure.
3. Interpretation.--In this annexure, --
   “Valuation date”, in relation to an actuarial investigation, means the date to which the investigation relates; and “Actuarial Reserve” means the “minimum actuarial reserve for policyholder liabilities” as referred to in Section (50), sub section (5) of the Ordinance.
4. Method of Determination of Actuarial Reserves (for policies other than those covered by Clauses
   8 and 9) —(1) Actuarial Reserves shall be determined separately for each contract by a prospective method of valuation in accordance with sub-clauses (2) to (5):
   (2) For a whole life policy, the actuarial reserve shall not be less than the mathematical reserve of a policy calculated on the following assumptions:
   (i) The policy takes effect one year later than the actual date of commencement; (ii) Total number of years’ premium paid is reduced by one year; (iii) The interest rate is at the rate of interest in accordance with clause 6; and (iv) The mortality in respect of the life assured under the contract is in accordance with clause 6. (3) For an endowment policy or a whole life policy where the premium paying period is not less than twenty years the actuarial reserve shall not be less than the mathematical reserve of a policy calculated on the following assumptions:
   (i) The policy takes effect one year later than the actual date of commencement; (ii) Total number of years’ premium paid is reduced by one year; (iii) The interest rate is at the rate of interest in accordance with clause 6; and (iv) The mortality in respect of the life assured under the contract is in accordance with clause 6. (4) For an endowment policy or a whole life policy where the premium paying period is less than twenty years the actuarial reserve shall not be less than the mathematical reserve of a policy calculated on the assumptions in sub-clause (2), and to the reserve so obtained shall be added one twentieth the number of years by which the premium paying period falls short of twenty years of the difference between the reserve obtained on the assumptions in sub-clause (2) and the reserve obtained as follows:
   (i) The policy takes effect on the date it commenced and for the premium paying period mentioned therein; (ii) Total number of years’ premium paid is unadjusted (iii) The interest rate is at the rate of interest in accordance with clause 6; and

(iv) The mortality in respect of the life assured under the contract is in accordance with clause 6. (5) For a single premium policy the actuarial reserve shall not be less than the mathematical reserve calculated on the following assumptions:
(i) The interest rate is at the rate of interest in accordance with clause 6; and (ii) The mortality in respect of the life assured under the contract is in accordance with clause 6.
5. Considerations in determination of Actuarial Reserves under Clause 4 — (1) The valuation method
shall take into account all prospective liabilities as determined by the policy conditions for each existing contract taking credit for premiums payable after the valuation date. (2) The appointed actuary shall take appropriate steps to ensure that the amount of actuarial reserve for any policy is not “negative” (3) The valuation method shall be the “Net Premium Method”. (4) If in the opinion of the appointed actuary, a method of valuation other than the Net Premium Method of valuation is to be adopted, then, other approximations (e.g. retrospective method) may be used:
Provided that where the appointed actuary is satisfied that the amount of calculated reserve is expected to be at least equal to the amount that shall be produced by the application of the Net Premium Method. (5) The method of calculation of the amount of liabilities and the assumptions for the valuation parameters shall not be subject to arbitrary discontinuities from one year to the next.
6. Valuation Parameters (applicable to clauses 4 & 5) — (1) The valuation parameters shall constitute
the bases on which actuarial reserves have to be computed.
(2) Mortality rates to be used shall be in accordance with the table of mortality rates prescribed by the Pakistan Society of Actuaries. (3) Morbidity rates to be used shall be by reference to a table, the use of which can be justified by the appointed actuary. (4) Valuation rates of interest, to be used by appointed actuary, subject to the following, shall be an effective rate of 3.75% per annum. (a) this rate shall be subject to review by the Pakistan Society of Actuaries from time to time; and (b) other parameters, may be taken into account, depending on the type of policy. In establishing the values of such parameters, the considerations set out in this Annexure shall be taken into account.
7. Applicability to Reinsurance.—(1) This annexure shall be applicable on both Gross of reinsurance
and Net of reinsurance valuation of business.
8. Requirements for Linked Business.—(1) Reserves in respect of linked business shall consist of two
components, namely, unit reserves and non-unit reserves.
(2) Unit reserves shall be calculated in respect of the units allocated to the policies in force at the valuation date using unit values at the valuation date.

(3) Non-unit reserves shall be determined by the Appointed Actuary using generally accepted actuarial principles. These reserves shall also take into account guarantees, if any, relating to surrender values or minimum death and maturity benefits.
9. Requirements for Universal Life and Universal Life Hybrid Business. – (1) Reserves in respect of
universal life and universal life hybrid business shall consist of two components, namely, fund reserves and non-fund reserves. (2) Fund reserves shall be the account value at the valuation date of the policies in force at the valuation date. (3) Non-fund reserves shall be determined by the Appointed Actuary using generally accepted actuarial principles. These reserves shall also take into account guarantees, if any, relating to surrender values or minimum death and maturity benefits.
10. Requirements for other business. – Reserves in respect of business not mentioned in these
regulations shall be determined by the Appointed Actuary using generally accepted actuarial principles and provisions of Guidance Notes issued by the Pakistan Society Actuaries.
11. Additional Requirements for Provisions.--- The appointed actuary shall make aggregate provisions
in respect of the following, where it is not possible to calculate mathematical reserves for each policy, in the determination of mathematical reserves:
a) policies in respect of which extra premiums have been charged on account of underwriting of under-average lives that are subject to extra risks such as occupational hazard, over-weight, under-weight, smoking history, health, climatic or geographical conditions; b) lapsed policies not included in the valuation but under which a liability exists or may arise; c) options available under individual and group insurance policies; d) guarantees available to individual and group insurance policies; e) the rates of exchange at which benefits in respect of policies issued in foreign currencies have been converted into Pakistan Rupees and what provision has been made for possible increase of mathematical reserves arising from future variations in rates of exchange; f) expenses reserves where the expected future expenses exceed the margins built in the pricing of products; and g) Other, if any.
12. Statement of Liabilities-- An insurer shall furnish a statement of liabilities in accordance with this
Annexure.

Annexure – VI
[See Rule 39(1)(g)]
Information to be provided by proposed director and proposed chief executive of the insurance broker -

1. Curriculum Vitae/Resume containing:
   a Name: (former name if any):
   b Father's or Husband Name:
   c C.N.l.C # (attach copy) d Nationality:
   e Age:
   f Contact details:
   i) Residential address:
   ii) Business address:
   iii)Tel:
   iv) Mobile:
   v) Fax:
   vi) E-mail:
   g
   National Tax Number:
   h Present occupation:
   i Qualification(s):
   i) Academic:

ii) Professional:
j Experience
(Positions held during the last 10 years along with name and address of company/ institution) 2 Nature of directorship Executive Non-executive Status of directorship Nominee director Number of shares subscribed or held __________________________________ Nominated by (name of shareholder)________________ 3 Names of companies, firms and other organizations of which the proposed person is a director, partner, office holder. 4 In the case of appointment of directors the date of board of directors' meeting in which the appointment of proposed director was approved. (Attach copy of the minutes of the meeting of the board of directors. If the director is elected, then attach a copy of the minutes of the general meeting of the company.)

• Latest Photograph of the applicant must be attached
  Signature_______________________________________________________ *use additional sheets if required

Annexure – VII
Declaration for the Purposes of Sub-rule 1(g) of Rule 39 of the Insurance Rules, 2017 (On stamp paper of appropriate value) I, _________________ son/daughter/wife of ___________________ adult, resident of ________________________________________________________________ and holding CNIC/Passport No. ___________________________ do hereby state on solemn affirmation as under:-

1. That I am eligible for the position of ___________ according to the Insurance Rules, 2017 for
   the position of __________ in ____________.
2. That I hereby confirm that the statements made and the information given by me is correct
   and that there are no facts which have been concealed.
3. That I have no objection if the Securities and Exchange Commission of Pakistan requests or
   obtains information about me from any third party.
4. That I undertake that I and the companies, firms, sole proprietorship etc. where I am a chief
   executive, director (other than nominee director), owner or partner etc. have no overdue payment of any financial institution.
5. That I undertake to bring to the attention of the Securities and Exchange Commission of
   Pakistan any matter which may potentially affect my status for the position of __________ as per the Insurance Rules, 2017.
6. That all the documents provided to the Securities and Exchange Commission of Pakistan are
   certified true copies of the originals.

---

DEPONENT
The Deponent is identified by me
Signature ______________________
ADVOCATE
(Name and Seal)
Solemnly affirmed before me on this ______ day of _____________ at ______________ by the Deponent above named who is identified to me by , Advocate, who is known to me personally. Signature___________ (Name and Seal)