The Securities and Exchange Commission of Pakistan (SECP) has proposed mandatory timelines for insurance companies to process and settle claims, aiming to reduce delays and strengthen consumer protection.
Under the draft Market Conduct Rules 2026, life insurance claims would have to be decided within 20 days after receiving all required documents. Motor insurance claims would need to be decided within five days of the survey report, while other non-life claims would have to be processed within seven days.
Once a claim is approved, insurers would be required to make the payment within seven days.
The proposed rules also introduce timelines for health insurance. In-patient claims would need to be settled within 20 days, while hospital discharge authorisation would have to be provided within three hours. Patients could not be held in hospitals because of delays by insurers.
The SECP also proposes limiting insurers to requesting only documents relevant to a claim and requiring companies to publish data on settled, rejected and pending claims.