LAHORE - Insurance industry in Pakistan unlike other sectors of economy is blooming rapidly as over 60 companies are operating in both life and non-life groups with half yearly profits as on June 30, 2013 after tax amount to over Rs3.94 billion. While amount shown under the claim statement stands at Rs5.27 billion.
Insurance sector has been exhibiting great potential for growth in the country as more and more individuals as well as companies have been adapting insurance as a mode of protecting themselves and their businesses from a variety of risks. However, with increase in number of their clients especially in non-life group complaints are on the rise as practice of undue delays in payment of claims to respective clients is growing.
Mounting negative means being used to delay or in certain cases avoid payment of due amounts of claims has been turning into a menace that could seriously damage the prospects of insurance sector. A glaring example of above mentioned issue in non-life insurance is over four years of delay to payment of six insurance policies of Hashwani Hotels Ltd, (HHL) related to tragic terrorist attack of September 20, 2008 at Marriot Hotel, Islamabad including bombing at front gate of the hotel and gutting at an upper floor of the hotel which eventually spread to other floors.
Evidently, two insurer companies namely PICIC and Jubilee Insurence in this case are busy using delaying tactics to avoid claims. It is worth to mention that while doing so the companies involved in the fiasco are trying their level best to protect their foreign Re-Insurer namely Swiss Re in Zurich, Switzerland rather than their local client. Now this claim case is being heard by Special Insurance Tribunal headed by a retired judge of the Supreme Court.
Yet even after four years client the HHL is still waiting for payment of its due claims.
Interestingly, Insurance Industry in Pakistan is standing at a most prospective ground with shareholders equity of Rs.50 billion, investments of Rs56 billion and total assets tune to over Rs1.09 trillion. Hence it is high time for gurus of insurance industry in the country especially Insurance Association of Pakistan to take up the issue of delaying tactics in payments of claims by its members to respective clients and bring their house in order.