KARACHI: Appreciating the performance of Federal Insurance Ombudsman (FIO), President Arif Alvi said the agency played a significant role in providing free-of-cost and prompt justice to the complainants.
It had settled a large number of complaints amicably with the consent of both parties i.e. policy holders and insurance companies.
Addressing the seminar, Importance of Transparency in Insurance Sector, organised by the FIO in Karachi at Governor House, he apprised that in 2020 alone, the body provided relief worth Rs410 million to complainants and this year, the figure has registered an increase to Rs2.13 billion.
This figure of the relief is expected to rise to Rs2.30 billion in next year, he told.
The success of the FIO in providing speedy and cost-free justice to complainants caused a rise in registration of complaints by 50 percent when compared with last year, he said, adding disposal of the complaints was 90 percent.
Of the total registered, more than 90 percent of cases were being handled within 60 days, the president recounted.
In addition, the FIO has also handled the issue of miss-selling wisely.
Expressing concerns over the low awareness among the public about ombudsman, Alvi mentioned that hardly, 4-5 percent of people were aware of the office, and emphasised the need for creating awareness through media about the services being provided by the institution for the relief of the complainants.
Realising the potential of the insurance sector, the president informed the agriculture sector should be focused as insurance companies should develop products for this sector. More than 60 percent of the population is associated with this sector and they should be covered under insurance plans.
On the risk factors, he said that risk-sharing was very important and should be shared among stakeholders as the government has introduced health cards to cover or share the risks.
On the scams, he told that banks should inform the public through messages and calls about the frauds, saying the scammers were minting money through different techniques.
Assuring the FIO of his full support and cooperation in the performance of his duties, the president underscored the need for further intensifying the efforts by the ombudsman to provide maximum relief to the aggrieved policyholders against the malpractices.
Federal Insurance Ombudsman Muhammad Khawar Jameel said the contribution of the insurance sector to the GDP is relatively low and steps were being taken to increase its contribution to the national exchequer.
He said a major chunk of complaints was relating to Bancassurance, adding a bank manager has become a sales agent of insurance policies under the scheme which is not part of their job description.
It is also highly unfortunate that a bank manager misstates facts to customers regarding the insurance schemes to trap innocent customers.
He said he has approached the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP) and Pakistan Banks’ Association to take stock of the situation and save people from fraudulent activities.
Later, President Alvi handed over the claim settlement cheques to the complainants.
