Karachi, April 23, 2025 – A major bank has come under scrutiny after it was found issuing insurance policies without the consent of its account holders, and deducting premium amounts directly from their deposits.
The unethical practice was brought to light following several complaints lodged with the Banking Mohtasib of Pakistan (BMP).
According to details, multiple account holders discovered unauthorized deductions totaling Rs1,787,500 from their bank accounts. These deductions were made under the guise of premium payments for insurance policies that the account holders claim they never signed up for, nor were informed about.
The affected individuals only became aware of the deductions when they reviewed their quarterly bank account statements. Upon noticing the unauthorized charges, they immediately contacted their bank to raise concerns. However, their initial attempts to seek redress directly from the bank proved unsuccessful, prompting them to escalate the matter to the Office of the Banking Mohtasib of Pakistan.
The office of Banking Mohtasib of Pakistan launched an investigation and asked the concerned bank to provide clarification. In response, the bank acknowledged the issue and stated that it had initiated the process to cancel the unauthorized insurance policies in coordination with the respective insurance company.
Following sustained follow-up from the Mohtasib’s office, the bank successfully cancelled the insurance policies and refunded the full amount of Rs1,787,500 to the affected account holders. The refunded amounts included Rs687,500, Rs500,000, and Rs600,000, respectively. The account holders confirmed receipt of their funds and expressed satisfaction with the resolution facilitated by the Banking Mohtasib.
This incident highlights the need for improved transparency and customer consent protocols within banking operations, especially when it comes to offering optional services like insurance. Regulatory bodies have reiterated the importance of protecting the rights of account holders and ensuring that no financial product is imposed without explicit approval.