Law: Insurance Ordinance, 2000

Section: 6

Insurance Ordinance (XXXIX of 2000)--Ss. 6, 11, 29, 36 & 63---Securities and Exchange Commission of Pakistan (Insurance) Rules 2002, R.9---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33--Failure of company to maintain statutory deposit and to meet the minimum solvency required etc.---Appeal against Directives of the Commission---Appellant-Company which failed to maintain statutory deposit as provided in S.11(1)(b) of Insurance Ordinance, 2000; failed to meet the minimum solvency requirement as set forth in S.11(1)(c) and S.36 of Insurance Ordinance, 2000; failed to pay to the Securities and Exchange Commission Rs.200,000 on account of annual supervision fee for the years 2005 and 2006 as provided under S.11(3) of Insurance Ordinance, 2000 and failed to deposit with the Government amount of Rs.27,697 as levy of 1% Federal Insurance fee was issued Directives to comply with said provisions of law---Validity---Record had shown that appellant-Company had not submitted annual supervision fee of Rs.200,000 up to the year 2006 and had failed to submit- it for the year, 2007 and 2008 effectively and an amount of Rs.400,000 was due from the appellant---Statutory deposit of five million rupees at the time when the impugned Directive was passed and which later on stood at ten million rupees had not been deposited by the appellant with the State Bank of Pakistan---Finally the appellant had also failed to meet the minimum solvency requirement of fifty million rupees---Total admissible assets of the appellant, as per the record available with Insurance Department of the Commission was five million two hundred and sixty eight thousand rupees for the year ending 2007 which was far less than the required level of fifty million rupees---Appellant's own record showed that it did not meet the solvency level as prescribed by the law---Insurance Ordinance, 2000 did not distinguish between an insurance company with a paid-up capital and one which did not have a paid-up capital---Contention of the appellant that it being a mutual insurance company was not required to comply with the requirements of S.29 of the Insurance Ordinance, 2000, was…

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