KARACHI – Federal Insurance Ombudsman Dr. Khawar Jameel said Pakistan collects a total premium of Rs. 378 billion annually, which makes the ratio of only 0.08% to Gross Domestic Product (GDP) which is the lowest in the region, the rate is more than 2% in China, the neighboring country In India has it on 0.78%, our next target is to increase this rate to 1.5%. He expressed his views while talking to Korangi Association of Trade and Industry (KATI) Members.
On the occasion Saleem-uz-Zaman, President KATI, Zubair Chhaya, CEO of KITE, Zaki Sharif Senior Vice President, Nighat Awan Vice President, Syed Tariq Hussain Chairman Committee on Insurance, Mubashir Naeem Siddiqui, Director General of the Federal Insurance Ombudsman, Rashid Ahmed Siddiqui, Sheikh Manzar Alam and Ronaq Hayat were also present.
Federal Insurance Ombudsman Dr. Khawar Jameel said that efforts were being made to resolve the insurance complaints, adding that a large number of complaints were received from the insurance agents regarding agreements and misleading the people. In this regard, we have collaborated with the SECP and the State Bank of Pakistan, and have successfully made changes in the agreement. Banks cannot deduct insurance money directly from their customer’s account, for which verification from account holder has been made mandatory. The money is transferred to the insurance company only after two formal verifications.
The Federal Insurance Ombudsman further said that a total annual premium of Rs 378 billion is collected in Pakistan in which the insurance companies pay only 1% in return for the claims. In this regard Insurance companies have also been consulted to improve the system. Dr. Khawar Jameel said that consumer complaints are dealt with in a short span of 60 days, while in some cases our decisions are challenged in the courts. However, no decision has been challenged in the courts in the past few years. It is clear that decisions are being made on the basis of merit. In the past, up to Rs 410 million was settled by the Insurance Ombudsman, just last year more than Rs 2.13 billion was settled.
Dr. Khawar Jameel said that we seek KATI cooperation in this regard, KATI can play an important role in creating awareness among consumers about Insurance Ombudsman.
Earlier, KATI President Saleem-uz-Zaman welcomed the Federal Insurance Ombudsman, Dr. Khawar Jameel, on his visit, saying that there was a lack of awareness in the masses about the facilities provided by the Insurance Ombudsman. We are Interested in working together to make KATI members more aware. He said KATI role in economic growth is of paramount importance. KATI took important steps for the survival of the industry in the lockdown last year and continued her business life.
President KATI said that we started the process of vaccination in collaboration with the Sindh government and so far more than 70,000 employees and laborers have been vaccinated. KATI is also taking steps to facilitate vaccination at the doorsteps of industries.
Speaking on the occasion, KITE CEO Zubair Chhaya said that there is a lot of ambiguity in insurance matters, the general public is not aware about insurance, the points listed on the form by the insurance companies are printed in this way that they are not readable.
He said that the Insurance Ombudsman kept KATI informed of his steps from time to time so that KATI could pass on the information to his members in order to help them.
Speaking on the occasion, Syed Tariq Hussain, Chairman, KATI Committee for Insurance, said that we are pleased to hear that complaints are resolved with the Insurance Ombudsman within 60 days, but common man has no awareness of such facilities. Generally people don’t know that the complaint can be submitted to the Insurance Ombudsman on a plain paper without any fee, without involvement of a lawyer.
He suggested that the Insurance Ombudsman should develop a mobile app for the convenience of the public through which complaints could be lodged easily and the details related to it would also be available to the customer in a timely manner.
Mubashir Naeem Siddiqui, Director General, Federal Insurance Ombudsman, said on the occasion that for the convenience of the public, there is a website of the Insurance Ombudsman on which consumers can easily lodge a complaint.
He said that we want KATI to put up information poster and distribute it to all members about the Insurance Ombudsman services. He said that the Insurance Ombudsman is committed to bring free and timely justice to the people.
