SOHAIL SARFRAZ

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has decided to revise classes of insurance surveying i.e. surveyors and authorised surveying officers, and directed existing insurance surveyors to comply with the requirement of minimum paid-up share capital in accordance with the classes of business.

In this regard, the SECP has proposed amendments in the Insurance Rules, 2017 through an SRO issued here on Friday.

According to the draft amendments in the Insurance Rules 2017, the following shall be the main classes of insurance surveyors: fire and property damage business; marine, aviation and transport business; motor business (to include own damage and third party liability) and miscellaneous business. Provided that miscellaneous business shall be classified into following subclasses i.e. liability business; workers compensation business; credit and surety ship business; accident and health business; agriculture insurance including crop insurance; and others.

Provided that existing licensees shall apply for the licence of above main classes on the expiry of their valid licence as on the commencement date of this notification.

Provided further that the persons having licence for the miscellaneous class on the commencement date of this sub-rule, shall be issued a composite licence of miscellaneous business confirming that the applicant is eligible to undertake all the sub-classes, within a year of coming into force of this notification.

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. A certificate of registration as an authorised surveying officer under section 113 of the ordinance shall specify the main class of insurance surveyors for which the certificate of registration is granted, it said.

Provided that the existing insurance surveyors shall comply with the requirement of minimum paid-up share capital in accordance with the classes of business in the following manner: 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.

The draft rules said that 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 per main class, which shall be refunded if the application is not granted.

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 per main class, which shall be refunded if the application is not granted.

With effect from Jan 1, 2018, 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, the SECP added.

An application for grant of an authorised surveying officers’ new licence shall be accompanied by a fee of Rs 5,000 per main class, which shall be refunded if the application is not granted.”

An application for renewal of an authorised 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.