ISLAMABAD: While reviewing the yearly performance of three major state owned insurance companies, the National Assembly the Standing \Committee on Commerce, Tuesday, expressed displeasure over the vacant lying properties of these organizations.
Insurance sector is regulated under the Insurance Ordinance 2000. In last few years, it has transformed into a developing and fast growing market that is generally divided into three components: life insurance, general insurance and health insurance.
NA Commerce Committee strongly recommended arrangements to rent out valuable properties situated in Pakistan and Dubai. According to Chairman Committee Siraj Muhammad Khan, committee held an important meeting at SLIC Conference Room Karachi and discussed the yearly performance of the State Life Insurance Corporation of Pakistan (SLIC), National Insurance Company Limited (NICL) and Pakistan Reinsurance Company Limited (PRCL).
He told this scribe here on telephonically that the Chairperson-SLIC apprised the Committee over the Yearly Performance review of the State Life Insurance Corporation of Pakistan. The SLIC works with the mission to remain the leading insurer in the country by extending the benefits of life insurance to all sections of society, about 58% life insurance is conducted by SLIC.
The operational territories of SLIC are widening up to Saudi Arabia, Kuwait and UAE. SLIC is operating with five Regions in the country with 1016 Area Managers as its regular employees. The Committee recommended that SLIC may develop some operational innovations to compete the international market and the Parliamentarians may be engaged in Group Insurance.
Moreover, ZTBL may be approached for insurance of its loanees of ZTBL. The Committee showed its displeasure over the delay in the construction of SLIC building in Blue Area, Islamabad and directed that the report may be submitted to the Committee.
The Committee was also informed that no recoveries have been received yet in respect of NICL scandal in 2010. The Committee also directed that PRCL should initiate close collaboration regarding its joint venture with ECO countries to get the international exposure.
The meeting was attended by Muhammad Pervaiz Malik, Mian Muhammad Rasheed, Tahira Aurangzeb, Makhdoom Syed Ali Hassan Gillani, Dr. Mahreen Razaque Bhutto, Nazir Ahmed Bughio, Mussarat Zeb and Sanjay Perwani, MNAs, bedside senior officers from Ministry of Commerce, Chairperson-SLIC, NICL and PRCL also.
It is pertinent to mention here that SLIC is headed by a Chairman and assisted by the Executive Directors appointed by Federal Government. The major function of the State Life Insurance Corporation of Pakistan is to carry out Life Insurance Business; however, it is also involved in the other related business activities such as investment of policyholders fund in Government securities, Stock market, Real Estate etc. The major achievements of State Life are as under:
While, the National Insurance Company Limited was incorporated in March 2000 as an unquoted public limited company under the Companies Ordinance 1984 through NIC (Reorganization) Ordinance 2000 with major objectives to provide insurance cover to the Government/Semi Government organizations at economical cost, to reduce outflow of foreign exchange by reducing dependence on reinsurance abroad, to make significant contributions to public exchequer by payment of taxes & dividends and to make prudent investments in public as well as private sector in order to obtain maximum returns.
Similarly, Pakistan Reinsurance Company Limited (PRCL) is a public sector company under the administrative control of the Ministry of Commerce. The Company is headed by a Chairman with a nine member Board of Directors. The role of PRCL in economic development of Pakistan is significant. PRCL awareness of increasing requirements of insurance and reinsurance of a progressive economy is making great efforts in coming up to national expectations. This progress signifies the consolidation of the position, both at home and abroad, encouraging further expansion.