Securities and Exchange Commission of Pakistan issues license to non-life insurance company

Karachi, May 22, 2013 (PPI-OT): The Securities and Exchange Commission of Pakistan (SECP) has issued a license to the Sahara Insurance Company Limited (SICL), a wholly-owned subsidiary of the Employees Old-age Benefits Institution (EOBI), to transact non-life insurance business in the country. With continuing emphasis on social insurance, the EOBI decided to incorporate the SICL with the primary objective of providing health insurance coverage to the EOBI pensioners, aged between 60 and 70.

In addition, accidental death and disability coverage will be provided to expatriate Pakistanis working abroad. In case of health insurance the premium will be funded by the Workers Welfare Fund while premiums for accidental death and disability insurance will be paid directly by the expatriate Pakistani labor force to Sahara Insurance Company Limited (SICL).

Following the registration of the SICL, the total number of active non-life insurers has reached 40, while the total number of active insurance companies (life and non-life), including Pakistan Reinsurance Company Limited, now stands at 50.

It is important to note that the last time a license was issued by the SECP to an insurance company was in 2009, and that was to a life insurer. With this move, it is anticipated that the health insurance sector in Pakistan will witness visible growth, while holistically improving insurance penetration and density figures that have remained one of the lowest in the region.

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1. SECP issues license to the Sahara Insurance Company to conduct non-life insurance business

2. Sahara Insurance Company a subsidiary of EOBI will provide health insurance coverage to the EOBI pensioners, aged between 60 and 70.

3. Sahara Insurance Company will provide accidental death and disability coverage to expatriate Pakistanis.

For more information, contact:
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +9251 921 4005 or 921 4009 (Ext. 378)
Fax: +9251 920 6459
Cell: +92302 855 2254
E-mail: shakil.chaudhary@secp.gov.pk

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