Islamabad, November 5, 2023 – President Dr. Arif Alvi has issued a directive to the State Life Insurance Corporation of Pakistan (SLICP) to fulfill a long-awaited death insurance claim, amounting to Rs 300,000, alongside accrued profits, for the family members of a deceased policyholder.
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Faysal Bank and State Life Insurance Join Forces for Takaful Operations
Karachi, October 10, 2023 – In a significant move, Faysal Bank Limited (FBL) and State Life Insurance Company (SLIC) have inked a collaboration agreement to provide Takaful operations.
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State Life Insurance directed to pay interest for delayed payment
KARACHI: State Life Insurance Corporation of Pakistan (SLICP) has been directed to pay interest to a policy holder for delayed payment.
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President Alvi directs State Life Insurance to pay compensation
ISLAMABAD: The President of Pakistan Dr. Arif Alvi has directed State Life Insurance Corporation to pay compensation to family of policy holders.
While rejecting four similar representations preferred by State Life Insurance Corporation of Pakistan (SLICP) against the decisions of the Wafaqi Mohtasib, President Dr Arif Alvi has directed SLICP to pay Rs 1.78 million to the family members of the policyholders, a statement said on Tuesday.
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He said that by denying rightful dues to the claimants SLICP has committed maladministration.
The President disregarded the arguments of SLICP and said that SLICP had failed to prove the existence of alleged pre-insurance ailments with irrefutable evidence at the time of approving the life insurance policies to deceased policyholders.
The President said that while filing appeals, the SLICP did not factor in the reports of its own Field Officers who had declared the insured persons as completely healthy.
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He further observed that the denial of life insurance claims without irrefutable evidence was highly unjustified and reflected maladministration on the part of the SLICP.
The President held that in all four cases, no clinical investigation or diagnostic assessment had been produced by SLICP to corroborate that the deceased policyholders were in fact patients of different diseases.
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He rejected all four representations and directed SLICP to report compliance to the Mohtasib within 30 days. As per details, the complainants (Mst Irshad Bibi, Mst Samreen Aasima, Muahammad Awais and Muhammad Ismail) had approached SLICP for the payment of the sum assured as per the insurance policies.
SLICP refused to pay the claims by alleging that the deceased policyholders had pre-insurance ailments, such as TB, Cystic Bronchiectasis, kidney disease or lung disease, which they wilfully kept secret at the time of obtaining the policies.
READ MORE: President Alvi directs bank to refund unfair recovery
Feeling aggrieved, the complainants separately approached the Wafaqi Mohtasib to seek compensation, which passed the orders in their favour. Later, SLICP filed representations against the decisions of the Mohtasib with the President, which were also rejected.
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State Life Insurance directed to pay claim to widow
ISLAMABAD: The President of Pakistan Dr. Arif Alvi has directed State Life Insurance Corporation of Pakistan (SLICP) to pay claim of Rs412,000 to a widow along with interest amount for unnecessary delay, statement said on Sunday.
Expressing displeasure over an unnecessary delay of seven years in the payment of life insurance claim to a widow, President Dr Arif Alvi directed the SLICP to pay the sum assured of Rs 412,000 as well as add inflation cost/interest to the accrued amount.
READ MORE: President Alvi orders State Life to pay death insurance
He further directed SLICP to apologize to the widow and change its financial system attitude and report compliance to Wafaqi Mohtasib within 30 days.
The President passed these orders while rejecting a representation of SLICP against a decision of the Wafaqi Mohtasib directing it to pay the claimants the assured amount without further delay.
READ MORE: President Alvi directs bank to refund unfair recovery
As per the details, the deceased Mr Zahid Altaf Bhatti had obtained two life insurance policies from SLICP (the Agency) on 06.07.2007 and 25.06.2010 for the sum assured of Rs 212,000 and Rs 200,000 respectively. He died on 20.03.2015 and his wife, Mst Fouzia Zahid Bhatti (the complainant), approached the Agency to pay the insurance claim but the latter refused to pay the sum on the ground that the deceased had pre-insurance ailments and was a patient of liver disease/hepatitis C.
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Feeling aggrieved, Mst Fouzia Zahid Bhatti filed a complaint with Wafaqi Mohtasib who directed SLICP to pay the amount and report compliance within 30 days.
Instead of implementing the orders of the Wafaqi Mohtasib, SLCIP filed a representation with the President against the decision of the Mohtasib. Rejecting the representation, President Dr Arif Alvi referred to section 80 of the Insurance Ordinance, 2000, which provides that an insurance policy cannot be called in question on the grounds of misrepresentation, false statement or suppression of material facts after two years from the date when the policy was originally effected.
READ MORE: Dr. Alvi orders action over misconduct with 82-year taxpayer
In the present case, the policies were issued in 2007 and 2010, whereas the policyholder expired in 2015, thus, the policy could not be called into question. He further noted that the Agency had failed to substantiate its claim and no clinical investigation or diagnostic assessment had been produced to corroborate the existence of pre-insurance ailment.
The President further observed that the Confidential Report of the Field Officer had also declared the insured as healthy and categorically stated that he knew the deceased for the last 12 years.
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The President underlined that ethical principles and compassion should not be ignored in the pursuit of making profits.
He stated that SLICP came out with frivolous excuses and delayed the payment in an unethical manner. The President advised the Agency to change its financial-system attitude and add inflation cost/interest to the accrued amount so that the beneficiary is not slighted because of pathetic delays.
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President Alvi orders State Life to pay death insurance
ISLAMABAD: President of Pakistan Dr. Arif Alvi has order the State Life Insurance Corporation to pay death insurance claims to widows of two different insurance policy holders,
The president upheld the orders of the Wafaqi Mohtasib to pay the death insurance claims to the widows of policyholders in two separate cases and rejected the representations of SLICP in this regard.
According to the details, Mst. Nagina Fatima’s late husband had purchased non-medical life insurance policy for Rs 1 million and paid annual premium amounting to Rs 54,890 on December 31, 2018.
After his death in February 2019, the widow, being the nominee of the deceased policyholder, approached the SLICP for the payment of death insurance claim.
The SLICP repudiated her insurance claim without issuing her any notice, thereafter, the widow approached the office of the Wafaqi Mohtasib for the redressal of her grievance.
Similarly, the husband of Mst. Rehana Kosar had purchased a policy for Rs 410,000 and after paying annual premium in July 2019 he died. Mst. Kosar’s claim was also rejected without issuing any notice to her after which she approached the Wafaqi Mohtasib to seek justice.
Subsequently, Wafaqi Mohtasib, in both the cases, passed the orders directing SLICP to redress the grievances of the complainants by paying them death insurance claims, taking disciplinary actions against the delinquent officers/officials under the relevant laws and reporting compliance or intimate the reasons for not doing so within 30 days in terms of the Article 11(2) of P.O. 1 of 1983. SLICP, thereafter, filed appeals to the President assailing the orders of the Wafaqi Mohtasib. While rejecting the representation of SLICP, the President noted that under the Article 32 of the Establishment of the Office of Wafaqi Mohtasib Order 1983 read with Section 14 of the Federal Ombudsmen Institutional Reforms Act 2013, any person aggrieved by the order of the Mohtasib may file a representation within 30 days before the Honourable President.
He stated that in both cases, the orders of the Mohtasib were forwarded to the agency on 26.05.2021 whereas both the instant representations of SLICP were field on 07.07.2021.
The President observed that the extant law didn’t empower the condonation of delay to entertain a representation which is time barred, adding that it is liable to be rejected out rightly as incompetent and time barred. He remarked that the agency did not challenge the declarations made by the deceased policyholders about their good state of health and treated the insurance policies as “good risk” and a valid contract since the date of issuance of policies till their deaths for all intents and purposes.
He ordered to estop the agency to assail the policy after the death of policyholders as the agency repudiated the claim without issuing any notices and without providing the complainants the opportunity of being heard. The President in his decision wrote that the agency did not fulfil the requirements of natural justice which is one of the most sacred principles and its violation is always considered enough to vitiate even the most solemn proceeding.
“Therefore, the representation is rejected at it is time barred and the Agency must consider the matter further, redress the grievance of the complainants by paying them death insurance claims, take disciplinary actions against delinquent officers under relevant laws and report compliance within 30 days”, he ordered.
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Privatization of National Bank, State Life Insurance under consideration: Dr. Hafeez Shaikh
ISLAMABAD: The government is considering privatization of big entities such as National Bank of Pakistan (NBP) and State Life Insurance Corporation for better results.
Addressing a news conference in Islamabad on Sunday Prime Minister’s Advisor on Finance Dr. Abdul Hafeez Shaikh said that the government had begun to focus on improving the performance of institutions which were not properly functioning and have made decisions in this regard.
The organizations which the public sector is unable to run will be handed over to the private sector in a transparent manner. So we have injected new energy into privatization.
New companies have come forth and expressed their interest in privatization and their advertisements have been placed. We aim at fast-tracking these developments so productivity is increased.
Furthermore, for state-owned companies which need to be revamped, an organization ‘Sarmaya Pakistan’ has been activated and 20 companies have been selected for restructuring on a fast-track basis.
Shaikh also said that electricity distribution companies where many problems have arisen out of operating under the state will also be prepared for privatization.
He said that PTI government had succeeded in reducing the circular debt to less than Rs10 billion rupees.
He said when PTI government came into power the country was heading towards bankruptcy, but under the objective of economic stability, a number of steps were taken to control our Dollar Reserves.
The advisor said government expenses were reduced through austerity measures and current account deficit was also reduced over 70 percent.
Dr Hafeez Shaikh said six hundred thousand additional tax payers were registered. He said a new system has been introduced since 23rd of the last month under which speedy refunds are given to the business community. Now, refunds will be automatically ensured on 16th of every month.
The advisor said the process of privatization has been expedited and state owned enterprises will be restructured on fast track basis to improve their performance.
The advisor said value of rupee has improved resulting in a benefit of Rs246 billion in loans. He said Rs250 billion have been allocated for the development of agriculture sector.
Dr Abdul Hafiz Shaikh said the government fixed the economic growth target of 2.4, which will be achieved easily due to prudent economic policies of the government.
To a question, Dr Abdul Hafeez Shaikh said ease of doing business is top priority of the government.
He said government is providing loans and subsidy to the business community on gas, electricity, due to which exports are on the rise. Businessmen are important for the government, who are vital in provision of jobs. He also made it clear that there was no tax on food items.
The Finance Advisor said the government expects to collect over Rs1000 billion additional revenue through tax and non-tax resources in the current fiscal year. He said Rs140 billion have been received from two cellular companies and Rs370 billion is expected to be received in future from other resources.
He said the economy of the country is rapidly moving toward stability due to effective policies of the government and economic indicators are positive as stock market and value of rupee are stable.