It was this initiative that saw the end of the Department of Insurance and the Controller of Insurance and tranferring their functions of SECP. Among the objectives then specified for the Commission, emphasis was laid on expeditious settlement of claims not only between insurers and policy holders but also between insurers and intermediaries. With this will be seen linked the pro vision for promotion of efficiency in the conduct of insurance business and development of professional and educational institutions. All these put together, as now reflected in the Code of Conduct for the Surveyors and Loss Adjusters, will mean a shot in the arm for the national insurance industry.
The code of Conduct the Securities and Exchange Commission of Pakistan (SECP) has approved for Surveyors and Loss Adjusters of Pakistan, can certainly help streamline the country's insurance business in accordance with the trends and requirements of the fast changing management scenario of trade and industry the world over. It will be recalled that post-independence development of the insurance industry in Pakistan, then governed by the Insurance Act of 1948, gradually unfolded various problems in its way, owing largely to the need of expanding the too narrow base it had inherited after independence. For one thing, the paraphemalia needed to handle the gamut of insurance in all is dimensions, was conspicuous by its absence. It was, indeed, a challenging task, which for long years continued to be managed by the Department of Insurance, in the Ministry of Commerce.
However, with the passage of time the insurance industry kept advancing in all the unfolding directions through shifts and changes in policies and programmes, in accordance with the demands of the changing situation.
This, of course, has reference to the random mechanisms put in place from time to time to regulate the industry in such a manner as to meet the expectations of the policyholders effectively, particularly with regard to settlement of claims and disputes.
The new insurance scenario emerging in the aftermath of nationalisation, as evidenced in the rapid expansion of general business in all its forms and manifestations, created newer problems in the relationship between the insurance companies and the policyholders, particularly in settlement of claims. …