ISLAMABAD, August 20, 2026: The Securities and Exchange Commission of Pakistan (SECP) has issued the draft Market Conduct Rules for Insurers, 2026 for public consultation, proposing binding timelines for insurance claims, policy issuance and payments, along with greater disclosure of insurers’ claims performance.
The draft rules, applicable to personal lines insurance contracts for individual consumers, aim to strengthen policyholder protection and establish minimum standards for insurers in dealing with individual customers throughout the customer lifecycle.
Under the draft rules, life insurers will be required to decide a claim within 20 working days of receiving all required documents and clarifications. For non-life insurance, motor claims will have to be decided within five working days of receipt of the final survey report, while other claims will have to be decided within seven working days.
Once a claim is approved, the insurer will be required to make payment within seven working days of communicating the decision. Insurers will also be required to seek only documents directly relevant to settlement of a claim.
For health insurance, hospitalization claims will have to be settled within 20 working days of receipt of the last necessary document. Insurers will also be required to provide hospital discharge authorization within three hours, and a patient cannot be held back from discharge because of delay in authorization by the insurer.
The draft rules also introduce greater transparency in claims handling. Insurers will be required to disclose their claim settlement, repudiation, outstanding and pendency ratios on their websites and in annual reports. The disclosures will include data for at least the preceding three years.
For new insurance policies, insurers will have to communicate their decision on a proposal within seven working days. Life insurance policy documents will have to be issued within a maximum of 20 working days, while policies sold through digital channels or telemarketing will have to be issued within three working days.
The proposed rules also strengthen protection for motor insurance customers. Insurers will be required to disclose the estimated market value of a vehicle and explain the impact of over-insurance and under-insurance. Approved motor repairs will generally have to be completed within 15 working days, subject to exceptional circumstances. Non-compliance with the rules may attract a fine of up to Rs. 1 million, with an additional fine of up to Rs10,000 per day for a continuing default.
SECP has invited comments and suggestions from the public and stakeholders within 30 days of the notification. The feedback will be considered before the rules proceed through the applicable approval process.