SRO 246 (I)/2017: Directive for minimum financial protection

GOVERNMENT OF PAKISTAN
Securities and Exchange Commission of Pakistan

Islamabad, the 7th April, 2017

NOTIFICATION

SRO 246(I)/2017.- In exercise of the powers conferred by Section 40B read with clause (u) of subsection (4) of Section 20 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997), the Securities and Exchange Commission of Pakistan (SECP) hereby directs all the registered life insurers under the Insurance Ordinance, 2000 (XXXIX of 2000) to comply with the requirements contained in this directive in respect of such life insurance policies to which this directive applies with effect from 1st July, 2017.

The SECP through the Unit Linked Product and Fund Rules, 2015 notified vide S.R.O 343(I)/2015 dated April 22nd, 2015 and the Bancassurance Regulations, 2015 notified vide S.R.O 722(I)/2015 dated July 31st, 2015 had made minimum financial protection component a compulsory feature of all the unit linked products sold through any distribution channel and all regular/single premium life insurance products sold through the Bancassurance channel.

Henceforth, all life insurers/family takaful operators shall offer minimum financial protection component, as prescribed under the Unit Linked Products and Fund Rules, 2015 (as amended from time to time), in all their life insurance/family takaful products having savings component being distributed through any distribution channel or through direct selling of such products.

Every life insurer/family takaful operator shall file with the Commission before 1st July, 2017 a written confirmation, signed by its Chief Executive Officer, mentioning that all the existing saving products of the life insurer/family takaful operator comply with the provisions of this directive.

Any failure on part of any insurer to comply with the above directions of the Securities and Exchange Commission of Pakistan is punishable under section 156 of the Insurance Ordinance, 2000.

(Bilal Rasul)
Secretary to the Commission

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