Pakistan: SECP proposes MTPL compensation limit be 10 times current cap
Source: Asia Insurance Review | Nov 2017
Among several amendments to be made to the Motor Third Party Liability Insurance (MTPL) Scheme, the Securities and Exchange Commission of Pakistan (SECP) has proposed that the compensation limit be raised 10 times the current level to PKR200,000 (US$1,900) from PKR20,000, in case of death.
The compensation limit of PKR20,000 prescribed for death or bodily injury has become a meagre amount as it was set in 1949. Apart from the nominal amount of compensation prescribed almost seven decades ago, the existing procedure for determination of liability through courts is also so lengthy, costly and cumbersome, reported Business Recorder.
Other major changes to be made are:
- To introduce “no fault option” whereby the claim for death or bodily injury shall be payable to the victims of road accidents or their legal heirs without obtaining any court order and irrespective of the fact as to whether or not the insured person was at fault.
- To introduce compensation limits separately for bodily injuries. A