Law:

Section:

Insurance Ordinance (XXXIX of 2000)-------Ss. 11(1)(b), 29, 63(1) & 157---Failure to deposit statutory minimum amount---Company had not made any arrangement to maintain its statutory deposit level as per the provisions of S.29 and S.11 of Insurance Ordinance, 2000, despite warning and advise to meet the shortfall of said amount---Company had persisted said non-compliance for a period of 583 days---Company had deliberately contravened the provisions of Ss.29 & 11(1)(b) of Insurance Ordinance, 2000 for which the Commission took action as provided under Ss.63(1) and 157(1) of Ordinance---Commission, instead of imposing the penalty, took lenient view, condoned the company because the company had misinterpreted the provisions of S.29 of the Insurance Ordinance, 2000, which resulted in shortfall in the statutory deposits; company took immediate steps and removed the deficit in the statutory deposit after receiving the show-cause notice which showed the company's intent in complying with law by removing any contravention and no mala fide intent was noticed on the part of the company in the contravention---Stern warning was issued that in case of similar non-compliance in future; a strong action against the company, would be taken. ORDER (Under section 29 read with section 11(1), section 63(1) and section 157 of the Insurance Ordinance, 2000) MUHAMMAD ASIF ARIF, COMMISSIONER (INSURANCE)---This Order shall dispose of the proceedings initiated against Messrs Pakistan General Insurance Company Limited (herein referred to as "the Company") for not complying with the provisions of section 29 of the Insurance Ordinance, 2000 ("the Ordinance"). Background Facts 2. Messrs Pakistan General Insurance Company Limited ("the Company') is a public limited company, incorporated under the Companies Ordinance, 1984 ("the Ordinance"), and its shares are quoted on all three Stock Exchanges of the Country. 3. The relevant provisions of subsection 1(b) of section 11 of the Ordinance states that:-- "An insurer registered under this Ordinance shall at all times ensure that: (b) the provisions of this Ordinance relating to minimum statutory deposits have been complied with; . . . " 4.…

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