Law: Insurance Ordinance, 2000

Section: 76

Insurance Ordinance (XXXIX of 2000)--Ss. 76, 59-A & 63-Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33-Adopting misleading and deceptive market conduct to sell the package--Imposition of penalty-Appeal to Appellate Bench of the Commission Inspection of Company under S.59-A of the Insurance Ordinance, 2000, had revealed that Company had failed to meet the requirements of the Ordinance and had completely disregarded the interest of the Policy holders-Company adopted misleading and deceptive market conduct to sell the package and had failed to make the necessary disclosures to the Policy holders---Company had gone at length to explain the Package, however, it seemed to have ignored the interest of the Policy holders-Company had clearly violated S.76 of Insurance Ordinance, 2000 by engaging in misleading and deceptive marketing of the Package and could not be absolved from its responsibility and ought to have ensured that the Package was fully disclosed to passengers/Policy-holders--Company during the period of contravention, misled the Policy holders and gained a substantial amount and could not be let scot free-Impugned order was upheld on merits of the case and Company was directed to re-calculate the fine on the threshold of S.76(5) of the Insurance Ordinance, 2000. ORDER S. TARIQ ASAF HUSAIN, COMMISSIONER (LD).---This order shall dispose of Appeal No.63 of 2009 filed under section 33 of the Securities and Exchange Commission of Pakistan (the "Commission") Act, 1997 against the order dated 9-10-2008 (the "Impugned Order") passed by the respondent. 2. Inspection of appellant under section 59A of the Insurance Ordinance, 2000 (the "Ordinance") was conducted by Insurance Division of the Commission from 6-4-2009 to 10-4-2009. The inspection was focused on Amaan Travel and Health Takaful Package (the "Package"), a takaful product launched in October, 2008 and sold though Travel Agents Association of Pakistan ("TRAP"). The inspection revealed that the appellant has failed to meet the requirements of the Ordinance and has completely disregarded the interest of the policy holder. The appellant adopted misleading and deceptive market conduct…

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