SECP

Incorporation, Registration & Licensing

Guidebook

GUIDE SERIES

INSURANCE COMPANIES,
TAKAFUL OPERATORS,
INSURANCE BROKERS &
SURVEYORS

SECURITIES AND EXCHANGE COMMISSION

OF PAKISTAN

Pakistan

TotalArea:

Coastline:

Population:

Currency:

GrossDomesticProduct:

796,095km2
1,050km
173,593,383(2010)
PakRupee
173billiondollarsor0.28%oftheworld
economy(WorldBank)

5YearsPerformanceofInsuranceSector

GrossWrittenPremium
(NonLifeInsuranceIndustry)
50,000

46,746

45,000

43,002
41,309
38,743

40,000

PKRinMillions

35,000

33,289

30,000
25,000
20,000
15,000
10,000

5,000
0
06

07

08
Years

09

10

GrossWrittenPremium
(LifeInsuranceIndustry)
60,000
53,831
50,000

PKRinMillions

42,460
40,000
34,995
30,000

27,694
22,574

20,000

10,000

0
06

07

08
Years

09

10

InsurancePenetrationandDensity

Year

2010

2009

2008

2007

2006

0.69%

0.67%

0.74%

0.77%

0.73%

Density(PKR)

579

501

456

404

346

Density(USD)

6.82

5.97

5.77

6.57

5.67

Penetration(%)

Message from Commissioner (Insurance),

Securities and Exchange Commission of Pakistan

I have the honour to present you this Guidebook.

At the Securities and Exchange Commission, our primary target remains to see in this country a
healthy and vibrant insurance industry with sustainable growth. As the regulatory authority, we
wish to see steady increase of the insurance density and a higher level of penetration of insurance
business in terms of contribution to GDP as well as premium per capita, which is relatively low
when compared to the neighbouring regions.
Our strategy for achieving the objectives includes working closely with the industry and towards a
common goal i.e. the interest and welfare of the policyholders. We shall be undertaking campaigns
to spread awareness amongst the masses and we want that every Pakistani to secure an insurance
protection.
We have embarked upon a consultative dialogue process with the industry to comprehend their
difficulties and at the same time we are bringing in reforms in the current supervisory and
regulatory framework to observe practices at par with regional and global practices.
We strongly believe in our organizational values: Integrity, Accountability, Discipline, Fairness,
Transparency & Commitment to Excellence.
Best regards
Sincerely

Muhammad Asif Arif

Karachi, 16 March 2012

TABLEOFCONTENTS

SecuritiesandExchangeCommissionofPakistan

InsuranceDivision

Chapter

InsuranceandTakafulCompanies

1.
ProcedureforIncorporationofanInsuranceCompanyunderthe
CompaniesOrdinance1984

2.
ProcedureforRegistrationundertheInsuranceOrdinance2000

ApplicationforGrantofAuthorizationundertheTakafulRules

ApplicationforGrantofCertificateofCommencementofBusiness

ProcessDiagramforRegistrationofInsurance/TakafulCompanies

3.
WhattheSECPexpectstoseeintheBusinessPlan?

InsuranceBrokers&Surveyors

4.
LicensingofInsuranceBrokers

5.
InsuranceSurveyors&AuthorizedSurveyingOfficers

6.
E.Services

Contact

Page#
6
7

10
12
12
13
14

15
18
19

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SecuritiesandExchangeCommissionofPakistan

Organization:

Securities and Exchange Commission of Pakistan (SECP) was established under the Securities and Exchange
CommissionofPakistanAct1997andbecamefunctionalasabodycorporateon1January1999.SECPreplaced
the Corporate Law Authority, the former corporate regulatory body. It has been vested with adequate
operational,administrativeandfinancialautonomy.

LocatedintheFederalCapital,Islamabad,SECPhaseightregionaloffices(CompanyRegistrationOffices),oneat
theFederalCapital,fouratprovincialcapitalsandthreeinothermajorcitiesi.e.Multan,FaisalabadandSukkur.

Function:

Being the apex regulator, SECPs main functions include: regulation of securities market and related institutions
likeStockExchanges,CentralDepositoryCompany,CreditRatingCompaniesandModarabas(fundsoperatingon
the basis of Islamic economic principles); administration of the company law; regulation of nonbanking finance
companies like leasing companies, investment advisory and asset management companies, venture capital
companies,housingfinancecompanies,investmentfinancecompaniesanddiscountingcompanies,andregulation
ofinsuranceandrelatedbusiness.

TheInsuranceDivision

TheInsuranceDivisionis responsibleforregulating,supervisingandpromotingsounddevelopmentofinsurance
sector, which includes life and nonlife insurance companies, takaful operators, insurance surveyors and
intermediaries. It, also, maintains effective liaison with representative bodies and institutions viz. Insurance
Association of Pakistan, Pakistan Insurance Institute, Pakistan Society of Actuaries, Institute of Chartered
AccountantsofPakistan,etc.

Apartfrommonitoring,theInsuranceDivisionhasbeenfacilitatingtheInsuranceSectortoachievehighinsurance
penetrationlevels,removingbottlenecksthathampergrowthoftheinsuranceindustryandprovidingaframework
tobringtheinsurancecompaniesatparwithinternationalbestpractices.

REGULATORYFRAMEWORK:

TheinsurersregisteredinPakistanaregovernedbythefollowingprimarylawsandrules:

TheCompaniesOrdinance1984;

Companies(IssueofCapital)Rules,1996;

TheInsuranceOrdinance2000;

TheInsuranceRules2002;

TheSEC[Insurance]Rules2002;

TheTakafulRules2005;

TheInsuranceCompanies(SoundandPrudentManagement)Regulations,2012.

FUNCTIONALPROFILE:

Policy,Regulations&DevelopmentDepartment

Thisdepartmentundertakesresearchanddevelopmenttodeciphertheinternationaldevelopmentsand
its likely impact, if implemented, on local market. The Department, in consultation with the industry,
worksonnewinitiativesandimprovingthecurrentregulatoryframework.

It is also responsible for the registration and deregistration of new insurance companies, insurance
brokersandsurveyors.

SupervisionDepartment

This department analyzes periodic accounts, statutory returns, actuarial reports, reinsurance, treaty
arrangements and new products of registered entities. The department ensures that international
accounting and actuarial standards are applied and disclosed in a manner that allows current and
prospectivepolicyholder,investors,intermediaries,creditorsandSECPtoeasilydeterminethefinancial
conditionofinsurers.

CHAPTER1

TheprocedureforIncorporationofaninsurancecompanyunderTheCompaniesOrdinance1984

LegalformoftheCompany:
Thefollowingformsofcompaniesareeligibletoestablishandcommenceoperationasaninsurancecompany
inPakistan:

(a) apubliclimitedcompany;or
(b) abodycorporateincorporatedunderlawsofPakistan(notbeingaprivatecompanyorasubsidiary
ofaprivatecompany).

ThelawdoesnotpermitanycompanytotransactcompositeinsurancebusinessinPakistan.

ObjectiveoftheCompany:
Registeredinsurerscannotcarryonactivitiesotherthaninconnectionwithorforthepurposesofitsinsurance
business.AlltheobjectivesofthecompanyaredefinedinthecompanysMemorandumofAssociation,which
isdulyapprovedbytheSECPbeforeincorporationofthecompany.

ForeignInvestors:
In the year 2007, the government encouraged liberalization and 100% foreign ownership and control of
insurancecompanieswaspermittedtoforeigninvestors.TheminimumequityrequirementbeingUS$4million;
not less than US$2 million should come from abroad and an equivalent amount to be raised from the local
market.
ThefollowingaretherequirementsforincorporationofacompanyundertheCompaniesOrdinance1984.
PhaseI.

ReservationofName:

Promoters desirous of forming a company should make sure that the name chosen is not
otherwiseinappropriate,deceptiveordesignedtoexploitoroffendthereligioussusceptibilitiesof
thepeopleandneitheritsidenticalnorcloselyresemblingwiththenameofanexistingcompany.
Original paid challan in the prescribed amount may be deposited in any of the authorized
branchesofMCBBankLimitedbeingtheprescribedfeeforthispurposehastosubmittedvidean
applicationtotheIncharge,CRO,forseekingavailabilityofaname.

Upon receipt of a confirmation from the CRO, the prospective company has to proceed with
PhaseII.

Theapplicationsofforeigninvestorsaresubjecttoscreening/approvalMinistryofInterior.

PhaseII.

Incorporation:

Whilst the proposed insurance company shall be incorporated under the Companies Ordinance
1984bytheconcernedCRO.

Statutory forms & documents that are required to be submitted to the registrar are listed
hereunder:

1. Declarationforcompliancewiththerequirementsforincorporationofthecompany;

2. SituationofRegisteredOffice;

3. ParticularsofDirectors;

4. Thememorandumandarticlesofassociationshouldbeinlinewiththerequirementsof
theCompaniesOrdinance1984.Itshouldexplicitlyhave5specificclausesviz.

Nameclause,

RegisteredOfficeclause,

Objectclause,

LimitedLiabilityclauseand

Capitalclause.
TheMemorandumandArticlesofAssociation,atthetimeofsubmission,istobesigned
byeachsubscriberinoriginalinthepresenceofonewitness;

5. AcopyoftheoriginalpaidChallandepositedintheauthorizedbranchesofMCBBank
Limited or a Bank Draft/Pay Order drawn in favour of Securities and Exchange
Commission of Pakistan of the prescribed amount. Fee is calculated on the basis of
th
AuthorisedCapitalasper6 Schedule;

6. Proposedpatternofshareholdingformeetingtheprescribedminimumpaidupcapital
requirement. The minimum paidup capital of a newly proposed nonlife insurer &
generaltakafuloperatorisRs.300millionandforlifeinsurance/familytakafuloperator
itisRs.500million;

7. LegiblecopiesofComputerizedNationalIdentityCardorpassport,incaseofforeigner,
ofthePromotersandwitnesses;

8. CopyoftheletterconfirmingtheAvailabilityofNameissuedbySECP;

9. ABusinessProposal.

Thefollowingadditionaldocumentationisrequiredincaseofforeigninvestors:

(i)
Thenameandaddressoftheparentcompanywithcountryofitsincorporation;
(ii)
Thetypeofinsurancebusinesswhichtheparentcompanyistransacting;
(iii)
AuditedAnnualaccountsoftheparentcompanyforthelastfiveyears.

P.S.

DocumentssubmittedtotheRegistrarmustcomplywiththerequirementsspecifiedbytheRegistrarrelatingto
thelegibilityofthatdocumentviz.documentsshouldbeonA4sizeplainwhitepaper,textshouldbeblack,clear
legibleandofuniformdensity.Avoidusingdotmatrixprinterorcolouredinks.

CHAPTER2

ProceduresforRegistrationundertheInsuranceOrdinance2000

Prerequisites:

MinimumPaidupCapitalrequirement[LifeInsurer&FamilyTakaful:Rs.500millionandNonLife&General
Takaful:Rs.300million];

MaintainaStatutoryDeposit@10percentofthePaidupCapitalwithStateBankofPakistan;

CompliancewiththeSolvencyRequirementspursuanttotheprovisionsoftheInsuranceOrdinance2000and
rulesmadethereunder;

Abilitytomeetandcontinuetomeetitsliabilities;

AbilitytomeetandcontinuetomeetthecriteriapursuanttoTheInsuranceCompanies[Sound&Prudent
Management]Regulations2012;

EvidenceofappointmentofastatutoryauditorasapprovedbytheCommission;

Evidenceofappointmentofanactuary,iftheapplicantproposestocarryonlifeinsurancebusiness,

Theapplicantis,andislikelytocontinuetobeabletocomplywithsuchotherprovisionsoftheInsurance
Ordinance2000,asareapplicabletoit.

Application:
HavingobtainedCertificateofIncorporation,thesponsors/promoterswouldberequiredtosubmitanapplication
totheInsuranceDivisionofSECPforgrantofRegistrationCertificateunderSection6oftheInsuranceOrdinance
2000,tounderwriteinsurancebusinessinthecountry,whichwillspecify:

A. Thenameoftheinsurer;
B. The address of the principal office and in case of an insurer incorporated outside Pakistan, the
addressoftheprincipalofficeoutsidePakistan;
C. The name, address and occupation of the directors of the insurer and particulars of other
directorshipsheldbythem;
D. Thenatureofandallconsiderationsandotherbenefitspassingunder,anyagreementbetweenthe
applicantandanydirector;
E. Names and addresses of and particulars of any business carried on by, each person holding an
interestoftenpercentormoreintheissuedsharecapitaloftheinsurer;
F. A statement of the class or classes of insurance business to be carried on by the insurer and the
magnitudeofrisktobecoveredwithineachclass.
G. Whereregistrationissoughtforlifeinsurance,astatementofthestatutoryfundstobeestablished
bytheinsurer;
H. The name and address of the auditor of the insurer and a statement by the auditor that he
consentstoactasauditoroftheinsurer(auditorsshouldbeappointedoutofthelistofapproved
auditorsunderSection48(1));
I. Where registration is being sought for life insurance, the name and address of the appointed
actuary of the insurer and a statement by the appointed actuary that he consents to act as
appointedactuaryoftheinsurer.QualificationsofactuarieshavebeenprescribedunderRule3of
theSecuritiesandExchangeCommission(Insurance)Rules2002;
J. The name and address of the bank or banks which the insurer uses or proposes to use as its
principalbankerorbankers;
K. Thenameandaddressofanyinvestmentcustodianusedorproposedtobeusedbytheinsurer;
L. Informationonthecompanysreportingarrangementstoitsownmanagement;
M. InformationonthecompanysreportingarrangementtotheSECP;
N. Astatementoftheproposedreinsurancearrangementsoftheinsurerandadescriptiononhowand
towhatextenttheexpectedcontractsaretobeinsured;
O. Particularsofanyagreementotherthanareinsuranceagreement,whichtheapplicanthaswithany
personorbodycorporatecarryingoninsurancebusiness
P. Particularsofthemeasuresproposedbytheapplicanttoensurecompliancewiththerequirements
laid down in section 11 of the Insurance Ordinance 2000 and The Insurance Companies {Sound &
PrudentManagement}Regulations2012;
Q. Particularsoftheinvestmentpolicyoftheinsurer;
R. Detailsoftheaffiliation/outsourcingcontracts;
S. prospectivestaffplan(eventhoughallpositionsmightnotbefilledimmediately);
T. Plannedcommissions,benefitsandincentivesforagentsandbrokers;
U. Methodsofdistributionandplansfortrainingsalespersonnel;and
V. Typesofproductsandmarketingmethods.

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SupportingDocumentation:
Forthepurposeofs.S6(6)oftheInsuranceOrdinance2000,thefollowingdocumentationshallbesubmittedalong
withanyapplicationforregistration,namely:

CertificateTrueCopyoftheCertificateofIncorporationattestedbytheconcernedCRO;
CertifiedTrueCopyoftheMemorandumandArticlesofAssociationattestedbytheconcerned
CROorotherdocumentbywhichtheapplicantisconstituted;
AuditorsCertificateinrespectofpaidupcapitalofthecompany;
CopyofApprovalgrantedbytheInsuranceDivisionfortheappointmentofCEO,Directors,Key
Officers in compliance with the Insurance Companies [Sound & Prudent Management]
Regulations2012;
AstatementnotmorethansevendaysprevioustothedateofapplicationfromStateBankof
Pakistan reflecting the statutory deposit made under Section 29 of the Insurance Ordinance
2000;
CopiesofreinsurancetreatyarrangementunderSection41of theInsuranceOrdinance2000;
reinsurancetreatyarrangementswithonlyAratedreinsurersareacceptable;
Form 29 under the Companies Ordinance 1984, in case of change of directorship, after
incorporationofaninsurancecompany;
CopiesofAccounts,StatementsandReportslaidbeforetheshareholdersoftheapplicantatthe
last5annualgeneralmeetingsoftheshareholdersor,iflessthan5annualgeneralmeetingsof
the shareholders of the applicant have been held, copies of the accounts, statements and
reportslaidbeforetheannualgeneralmeetingsofshareholderswhichhavebeenheld;
Marketingliteratureand/orinternaltrainingmaterialforsalespersonneltoensuretheycontain
nomisrepresentationsorabuses;
Inrespectofrestrictedclassesofnonlifeinsurancebusiness,acertifiedcopyofthepublished
prospectus,ifany,adofthestandardpolicyformsoftheinsurerandstatementoftheassured
rates,advantages,termsandconditionstobeofferedinconnectionwithinsurancepolicies;
Tocarryonlifeinsurancebusiness,thefollowinginformationshallbesubmitted:
i. a statement of the rates, advantages, terms and conditions of the life insurance policies
proposedtobeofferedbytheapplicant,includingwithoutlimitationwherethepolicyacquires
asurrendervalue,thebasisonwhichthesurrendervalueisdetermined,andincludingwithout
limitationincaseofinvestmentlinkedpoliciesadescriptionof:

Theinvestmenttowhichthepolicyislinked;

Thebasisonwhichthebenefitspayableunderthepolicyaredetermined;

The frequency with which and basis by which the unit values are determined,
andthevaluesattributedtounitsatthetimeofpurchaseandsale;

Thebasiswhichvaluesareattributedtounitsatthetimeofandforthepurpose
ofpurchaseandsale;

Thebasisonwhichexpensesattributedtothepolicyaredetermined;and

Thebasisonwhichchargesformortalityattributedtothepolicyaredetermined;
ii. a business plan setting out the expected premium income, expenses and results of the
applicant for a period of not less than ten years from the date at which authorization is
proposedtobeobtained;
iii.acopyofanywritten,electronicorothermaterialproposedtobeissuedbytheapplicantfor
masscommunicationorforcommunicationwithapolicyholderorprospectivepolicyholder,in
respectoflifeinsurancepoliciesproposedtobeofferedbytheapplicant;
iv. a statement by the appointed actuary that the terms and conditions of the life insurance
contractsproposedtobeenteredintoaresoundandworkable;and
v.astatementbytheappointedactuarythatthebusinessplanhasbeenpreparedaccordingto
principleswhichappeartohimtobereasonableandsound.

An applicant is required to communicate in writing, any change specified in the application or in the matters
contained in a document required, within 14 days after the occurrence of the change, signed by any two
authorizedpersonsspecifyingparticularsofthechange.

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SECPmayregisterinsureruponsatisfaction:

TheSECPshallscrutinizetheapplicationandthedocumentsenclosed,inlightoftheprovisionsoftheInsurance
Ordinance2000andRulesmadethereunderaswellaspolicydecision(s)madeinthisregard.

Important:
TheSECPmayatanytimerequirearegisteredinsureroranyinsurerdeemedundertheInsuranceOrdinance2000
toberegisteredtocomplywithsuchconditionsasmaydeemfit.

ApplicationforGrantofAuthorizationundertheTakafulRules:
After completion of procedures required under the provisions of the Insurance Ordinance 2000, companies
aspiringtotransactfullfledgetakafuloperationsorconventionalinsurersintendingtoundertakewindowtakaful
operations,mustcomplywiththeprerequisitesundertherelevantTakafulRules.

ScopeoftheCertificateofRegistration:

OncetheCertificateofRegistrationisgrantedtoaninsurerforconductinginsurancebusiness,thelifeinsureris
allowed to underwrite all classes of life insurance business (Ordinary Life, Capital Redemption, Pension Fund,
AccidentandHealth)andanonlifeinsurerisallowedtounderwriteallclassesofnonlifeinsurancebusiness(Fire
& Property Damage, Marine Aviation & Transport, Motor Third Party Compulsory, Liability, Workers
Compensation, Credit & Suretyship, Accident & Health, Agriculture Insurance including crop insurance,
Miscellaneous)subjecttotheextentitisallowedintheCertificateofRegistration.

ApplicationforGrantofCertificateofCommencementofBusiness:

Upon registration of the company under the Insurance Ordinance 2000, the insurer is required to obtain a
Certificate of Commencement of Business from the concerned CRO under the provisions of the Companies
Ordinance,1984tostartitsunderwritingbusinessoperations.

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13

CHAPTER 3
WhattheSECPexpectstoseeintheBusinessPlan?
The business plan should set out the strategy and rationale for establishing an operation in Pakistan and also
demonstrate how the business will be managed and controlled. It is recommended that the Business Plan be
attachedasaseparatedocument.

Thedescriptionofyourbusinessisanimportantpartoftheoverallapplicationandintegraltoourdecisionmaking.
Theextentofdetailssubmittedshouldbeproportionatetothenatureofthebusinessyouintendtocarryon,and
shouldbeappropriatetotheriskstoyourclients.

Introduction/BackgroundoftheCompany

Brief background about the organization, including past experience of the sponsors/promoters, CVs of
theproposedDirectors/Managementwhoareanticipatedtocarryontheproposedinsurancebusiness
inPakistan,alongwithitspatternofshareholding.

MissionStatement

Themissionstatementshouldguidetheactionsoftheorganization,spelloutitsoverallgoal,providea
path, and guide decisionmaking. It provides the framework or context within which the company's
strategiesareformulated.

VisionStatement

TheMissionandValuesarepowerfultoolsfordefiningandguidingyourorganization'sabilitytocreate
thefuture.

DescriptionoftheprevailingEconomicConditionsoftheCountry

AnalysisoftheInsuranceIndustry

BusinessOperationalStructure
BusinessSector
ProposedClassofBusinesstobeunderwritten
ProposedProductsandServices
TargetMarket
RiskManagement&RatingProcedures
OrganizationalStructure
HumanResourceStructure
InitialEstimatedSetupCost
UseofIT
Branches/SalesOfficesStructure
ProposedReinsuranceArrangement
TargetedVolumeofBusiness
Marketing Strategy (including Product Innovation, Distribution Channels, Pricing Mechanism,
Promotion&Publicity
Operational System Manuals (Underwriting Policy, Claims Management, Reinsurance
Arrangement,Commission,InvestmentPolicy,Accounting&MISReporting)
CriticalSuccessFactor

ProjectedFinancialStatementfor[Ten(10)yearsinrespectofLifeInsurers&Three(3)Yearsfornon
Life Insurers] including Balance Sheet, P&L Account, Revenue Account (for Life Insurers], Cash Flow
Statement, Changes in Equity Statement, Premium Statement, Claims Statement, Investment Income
Statement, Expenses Statement and any other ancillary detail of projected financial information or
assumptions.

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CHAPTER4
LicensingofInsuranceBrokers

1.

2.

3.

EligibilityCriteria:

Nopersonwhoisnotacompanyshallbeeligibletobelicensedasaninsurancebroker.

Prerequisites:

Aminimumpaidupsharecapitalofnotlessthantenmillionrupeesforlocalbrokersand0.3
millionUSdollarsforaforeigninsurancebrokertoberegisteredinPakistan;

statutory deposits in the amount of 0.5million rupees maintained with the State Bank of
Pakistan;and

professionalindemnityinsurancetoalimitoftenmillionrupeesforanyoneoccurrence.

ApplicationforLicensing:

An application for grant of a licence or renewal of licence to act as an insurance broker shall, for the
purposesofsubsection(4)or(5)ofsection102oftheOrdinance,shallcontainthefollowingdetailsin
respectoftheapplicant,namely:

(i)Itsname;
(ii)theaddressofitsregisteredoffice;
(iii)itspostaladdress(ifdifferent);
(iv)adescriptionofthebusinesscarriedonbyit(otherthaninsurancebroking);
(v)thenamesofinsurancecompanies,ifany,whichhaveappointedtheapplicantasinsurance
agent;
(vi) the names & pattern of shareholding and details of shareholders holding more than ten
percentoftheissuedsharecapital;
(vii) the names & particulars including qualification, experience, etc. of all directors of the
bodycorporate;and
(viii) evidence, in original or certified copy form, of compliance with the prescribed
qualifications.
(2)Everyapplicationshallbeaccompaniedbyadeclarationbytheapplicantstatingthat
(a)theinformationgivenbyhimiscompleteandcorrect;
(b)hehascompliedwiththerequirementsoftheInsuranceOrdinance2000andthe
rules made thereunder concerning the required qualifications of an insurance
broker;
(c) he undertakes to comply, and (in the case of an existing insurance broker)
declares that he has during the previous twelve months complied with being the
InsuranceOrdinance2000andtherulesmadethereunderconcerningtheconductof
aninsurancebroker;and
(d) neither the body corporate, nor any director of the body corporate, nor any
officer of the body corporate engaging in the business of insurance broking, is
disqualifiedfromactinginthebusinessofinsurancebrokingbyvirtueof
(i)beingaminor;
(ii) having been found of unsound mind by a Court of competent
jurisdiction;
(iii) having been found guilty, within five years preceding the date of the
declaration, of criminal misappropriation or criminal breach of trust,
cheating or forgery or an abetment of or attempt to commit any such
offencebyaCourtofcompetentjurisdiction;
(iv)havingservedanycustodialsentenceimposedbyaCourtofcompetent
jurisdiction,endingwithinfiveyearsprecedingthedateofthedeclaration;
(v) having been found guilty by a Court of competent jurisdiction of any
offenceinvolvinginsurance;or
(vi) having been otherwise declared as disqualified by the Insurance
Tribunal,otherthanforatermwhichhadexpiredpriortothedateofthe
declaration.

(3) Every application and declaration required shall be made in writing and the declaration

15

4.

shallbesignedbyatleasttwodirectorsofthebodycorporate.

DocumentaryEvidences:

An application for an insurance brokers licence should be accompanied by the following documents,
namely:

certifiedtruecopyofthelastfiledFormA,21&29,attestedbytheconcernedCRO;

certified true copy of the Memorandum and Articles of the broker and Certificate of
IncorporationattestedbytheconcernedCRO;

evidenceofprofessionalindemnityinsurancepolicy;

evidence that the requisite amount has been deposited as statutory deposit with the State
BankofPakistan;

adeclarationformtotheeffectthatneithertheapplicantnoranydirectororprincipalofficer
oftheapplicantisdisqualifiedfromholdinghisofficeassuch;

aletterofsupportfromnotfewerthanfiveregisteredinsurers,eachsigned,onbehalfofthe
insurer,byadulyauthorisedrepresentative;

original challan of the fee deposited in the designated bank account in the amount of
Rs.10,000;

confirmationfromtheexternalauditorsinrespectoftheminimumpaidupcapital;

feasibilityStudyandBusinessPlancontaining3yearsfinancialprojections;

CVsinrespectoftheChiefExecutiveOfficer,Directors&KeyOfficers.Theproposedbroker
shouldensurethatnotfewerthantwoemployees(atleastoneofwhommustbeadirector)
should have aminimum of five yearsexperience working in or in relation to the insurance
industry,as
(i)anemployeeofaninsurer;or
(ii)anagent;or
(iii)anemployeeofanagent;or
(iv)anemployeeofaninsurancebroker;or
(v) in such capacity, related to the business of insurance, as satisfies the Federal
Government that the person has appropriate experience and knowledge to
undertakethebusinessofinsurancebroking;

An undertaking is required that neither the body corporate nor any director of the body
corporate, nor any officer of the body corporate engaging in the business of insurance
broking
(i)isaminor;
(ii)hasbeenfoundofunsoundmindbyaCourtofcompetentjurisdiction;
(iii) has been found guilty, within the five years preceding the present date, of
criminal misappropriation or criminal breach of trust, cheating or forgery or an
abetment of or attempt to commit any such offence by a Court of competent
jurisdiction;
(iv)hasservedanycustodialsentenceimposedbyaCourtofcompetentjurisdiction,
endingwithinthefiveyearsprecedingthepresentdate;
(v) has been found guilty by a Court of competent jurisdiction of any offence
involvinginsurance;or
(vi) has been otherwise declared as disqualified by the Insurance Tribunal, other
thanforatermwhichhadexpiredpriortothepresentdate.

ConflictofInterest:
Itismandatorythatnoinsurerornodirectorofaninsurershouldholdanydirectorindirectownership
interestinaninsurancebrokerortakepartinthemanagementordirectionofaninsurancebrokeror
viceversa.
PeriodofLicensing:

Aninsurancebrokerslicenceshallbeissuedinitiallyforaperiodofoneyearandmayonapplicationinthe
berenewedannually.

WithdrawalandRefusalofLicensing:

TheCommissionmaycancelorrefusetoissueorrenewabrokinglicence,wheretheCommissionbelieves
on reasonable grounds that the broker has contravened a provision of the Insurance Ordinance 2000,

16

includingwithoutlimitationthatthebrokerhasfailedtomaintainprescribedminimumlevelsofpaidup
capital,statutorydepositorprofessionalindemnityinsurance.

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CHAPTER5
LicensingofInsuranceSurveyors&AuthorisedSurveyingOfficers

Every surveyor, loss adjusters and loss assessor other than an adjuster of aviation or maritime losses are
requiredtogetlicensedundersection112oftheInsuranceOrdinance,2000.

Underthelawtherearetwotypesoflicenses:

InsuranceSurveyor(surveyingcompany),and

AuthorizedSurveyingOfficer.

ClassesofInsuranceSurveying:
Thefollowingaretheclassesforinsurancesurveyors:

Fire&PropertyDamage

MarineAviationandTransportbusiness

MotorThirdPartyCompulsoryBusiness

LiabilityBusiness

Workerscompensationbusiness

Credit&Suretyshipbusiness

Accident&Healthbusiness

Agricultureinsuranceincludingcropinsurance

Miscellaneousbusiness

ProcedureforGrantingLicensetoInsuranceSurveyor

1. EligibilityCriteria:

Nopersonwhoisnotacompanyshallbeeligibletobelicensedasaninsurancesurveyor.

2. Prerequisites:

Aminimumpaidupsharecapitalshallbeonemillionrupees,

Theminimumlevelofprofessionalindemnityinsuranceshallbeonemillionrupeesforanyone
eventandsuchinsuranceshallextendtoabodycorporateandalldirectorsorofficersofthe
bodycorporatewhoactasAuthorizedSurveyingOfficers;

The minimum educational qualification for the CEO of an insurance surveyor shall be
BachelorsDegreeinanydisciplinefromarecognizeduniversity

3. ApplicationforLicensingofInsuranceSurveyors:

The application for grant of license to act as an insurance surveyor should be filed with the
Commissionundersub.Rule1ofRule19oftheInsuranceRules2002.

4. DocumentaryEvidences:
Anapplicationforaninsurancesurveyorslicenseshouldbeaccompaniedbythefollowingdocuments,
namely:

1. TofurnishcertifiedtruecopyofcertificateofincorporationdulycertifiedbytheCompany
RegistrationOffice.
2. TofurnishcertifiedtruecopyofMemorandumandArticlesofAssociationdulycertified
bytheCompanyRegistrationOffice.
3. To furnish paid challan in respect of fee for grant of licence of the insurance surveyors
companytotheextentofRs.2,000/foreachclassofinsurancesurveyors.
4. Tofurnishastatementshowingthebreakupofthepaidupcapitalofthecompanyduly
verifiedbytheCharteredAccountantswithinthemeaningoftheCharteredAccountants
Ordinance,1961(xof1961).
5. To furnish a statement showing the numbers of persons working in the company along
withtheircompletenames,addressesandotherparticulars.
6. Adeclarationisrequiredintermsofsub.Rule(3)ofRule19;
7. Thedeclarationshouldbeonstamppaper,whichshallbesigned:
a. inthecaseofbodycorporate,byatleasttwodirectorsofthebodycorporate;and
b. inthecaseofafirmbyatleasttwopartnersofthefirm.
8. ThedeclarationshouldalsobeattestedbytheNotaryPublic.

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ProcedureforGrantingLicensetoAuthorizedSurveyingOfficer

1. EligibilityCriteria:

Theauthorizedsurveyingofficermustbeanaturalperson.

TheminimumeducationalqualificationforanauthorizedsurveyingofficershallbeBachelors
Degreeinanydisciplinefromarecognizeduniversity.

Theminimumofthreeyearspracticalexperienceofinsurancesurveyintheclassorclassesof
insurancesurveyorsforwhichregistrationisbeingsought.

2.
DocumentaryEvidence:
Anypersonentitledtoapplytoberegisteredasanauthorizedsurveyingofficerisrequiredtofurnishthe
followinginformation/documents:

A. An application under sub rule (1) and sub rule (2) of Rule 21 of the Insurance Rules, 2002 for
registrationandrenewalofregistrationofanauthorizedsurveyingofficerforanyclassofinsurance
surveyors.
B. The minimum educational qualification for an authorized surveying officer shall be Bachelors
Degreeinanydisciplinefromarecognizeduniversity.
C. The minimum of three years practical experience of insurance survey in the class or classes of
insurancesurveyorsforwhichregistrationissought,eitherconductedunderthesupervisionofan
insurancesurveyorlicensedatthattimeundertheOrdinanceorregisteredundertherepealedAct,
orconductedasanemployeeofaninsurancecompany.
D. Fee for registration/renewal of registration of an authorized surveying officer to the extent of
Rs.1,000/foreachclassofinsurancesurveyors.
E. Every application made under sub rule (1) or (2) shall be accompanied by a declaration by the
applicant.
F.Adeclarationisrequiredintermsofsub.Rule(3)ofRule19;
G.Thedeclarationshouldbeonstamppaper,whichshallbesignedbytheapplicantinthepresenceof
awitness,whoshallbeanaturalpersonnotarelatedpartyoftheapplicantandwhoshallalsosign
aswitness;
H.ThedeclarationshouldalsobeattestedbytheNotaryPublic.

PeriodofLicense:
ThelicensetoactasanInsuranceSurveyorandAuthorisedSurveyingOfficershallbeforaperiodofoneyear
whichshallbereneweduponapplication.

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CHAPTER6
E.Services

Since its inception, many changes have been made to enhance its operational efficiencies. One of the major
projectstakenupbytheSECPin2008wastoimplementeServiceswiththehelpofEGovernmentDirectorate
withalloperation&maintenancetobecoveredbytheIS&TdepartmentoftheSECP.

There are two methods for the submission of application/documents with the SECP viz. through electronic
mode/online or manual submission. Fee structure for filing documents/returns electronically of documents is
comparatively lower than manual submission. This amendment in the structure of fees was made to
encourage/enhancetheusageofeServices

The online system introduced through eServices has improved the efficiency and effectiveness of the business
processesofSECP,makingiteasierforclientssuchascompanies,individualsandinvestorsetc.tointeractwiththe
SECP. Main features of the system is online registration system for companies, online submission of annual,
quarterly,andmonthlyreturnsbycompanies,onlineregistrationandtrackingofcomplaints,etc.Thesystemhas
also reduced undue paper work. The system has enhanced the internal workings of the SECP which includes
implementation of workflow environment, business process analysis, document analysis, and business activity
monitoringandtrackingetc.
OnthesuccessfulcompletionoftheeServices,SECPhasachievedthefollowinggoals:

Onlinecompanyregistrationsystem
Onlineregistrationandfeedbackofcomplaints
AninfrastructureeasilycapableofautomatingprocessoftheCommission

In order to facilitate online submission of documents by regulatees to the Company Registration Offices, SECP
introduced certain amendments in the 6th Schedule to the Companies Ordinance 1984 (SRO No. 119(I)/2009).
There is an incentive for applicants/regulatees who wish to avail the facility of online submission of their
application.

TheURLtologontoe.Servicesishttps:eservices.secp.gov.pk/eServices.

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AuthorityinPakistan

SecuritiesandExchangeCommissionofPakistan
NICLBuilding,63JinnahAvenue,BlueArea,Islamabad
+92519207091(4lines)
E.mail:webmaster@secp.gov.pk
Website:www.secp.gov.pk
WorkingHours:MondaytoThursday:0830hrsto1300hrs&
1400hrsto1730hrs
Friday:0830hrsto1300hrs&1430hrsto1630hrs

InsuranceDivision

SecuritiesandExchangeCommissionofPakistan
SouthernRegionOffice
5thFloor,StateLifeBuildingNo.2
WallaceRoad,OffIIChundrigarRoad
Karachi
TelephoneNumbers:+922199213273&32422377

CompanyRegistrationOffices

1. Mr.ShaukatHussain
AdditionalRegistrar,CROIslamabad
StateLifeBuilding,7BlueArea
Islamabad
TelephoneNo.:0519208740
FaxNo:0519208740
Email:croislamabad@secp.gov.pk
or:shaukat.hussain@secp.gov.pk

3. Mr.SidneyCustodioPereira
JointRegistrar,CRO,Karachi
4thFloor,SLICBuildingNo.2,
WallaceRoad,Karachi.
TelephoneNo:02199213272
FaxNo.02199213278
Email:crokarachi@secp.gov.pk
Email:sidney.pereira@secp.gov.pk

5. Mr.IftikharHassanNaqvi
DeputyRegistrar,CROSukkur
28D,HamdardHousingSociety
AirportRoad
Sukkur
TelephoneNo:0715630517
FaxNo:0715633757
Email:croskr@hotmail.com
or:iftikhar.hasan@secp.gov.pk
7. Mr.MuinusSami
AssistantRegistrar,CROQuetta
382/3,(IDBPHouse),ShahraheHali,
QuettaCantt.
TelephoneNo:0812844136
FaxNo:0812899134
Email:croquette@secp.gov.pk
or:msami@secp.gov.pk

2. Mr.AhmadMuzammil
AdditionalRegistrar,CROLahore
3rd&4thFloor,AssociatedHouse
7EgertonRoad
Lahore
TelephoneNo.042992049626
FaxNo:04299202044
Email:crolahore@secp.gov.pk
Email:ahmad.muzammil@secp.gov.pk
or:shahbaz.sarwar@secp.gov.pk

4. Mr.SaeedullahKhan
JointRegistrar,CROPeshawar
1stFloor,StateLifeBuilding,TheMall,
PeshawarCantt.
PhoneNo:0919213178
FaxNo:0919213686
Email:cropeshawar@secp.gov.pk
or:saeedullah.khan@secp.gov.pk

6. Mr.MahboobAhmed
JointRegistrar,CROFaisalabad
356A,IkramPlaza,SmallDground.
PeoplesColonyNo.1,
Faisalabad.
TelephoneNo:0419220284
FaxNo:0419220152
Email:crofaisalabad@secp.gov.pk
or:mahboob.ahmad@secp.gov.pk
8. Mr.LiaqatAliDolla
JointRegistrar,CROMultan
63A,2ndFloor,
NawaeWaqtBuilding,
AbdaliRoad,Multan.
TelephoneNo:0619200530/9200920
FaxNo:0619200920
Email:cromultan.eservices@secp.govpk
orl:liaqat.dolla@secp.gov.pk

21

DISCLAIMER
This Guide has been published with the intention to create an awareness of the concept of the
relevant matters. However, the Guide does not tell everything and the opinions or legal
interpretations,containedinthebookletarecircumstantialandmayvaryunderdifferentsituations.
Ifthereaderisindoubtwhiledealingwithanyspecificcondition,itisrecommendedtorefertothe
Companies Ordinance 1984 and the Insurance Ordinance 2000 and allied laws and consult an
adviserforseekingprofessionaladvice.

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