The Karachi Chamber of Commerce and Industry (KCCI) and the Federal Insurance Ombudsman (FIO) have established a partnership today to address the critical issue of long-standing insurance disputes, aiming to facilitate speedy resolution and enhance regulatory cooperation. This initiative is expected to yield significant benefits for the business community by fostering a more transparent and efficient insurance environment.
During a meeting at KCCI, the Director General of the Federal Insurance Ombudsman, Mobashir Naeem Siddiqui, along with Advisor Fazal Abrejo, engaged in comprehensive discussions with KCCI President Rehan Hanif and other senior officials. The focus was on resolving insurance-related grievances and improving policyholder rights awareness.
Mobashir Siddiqui acknowledged the challenges faced by businesses, particularly those concerning trade insurance amid regional security tensions. He noted that geopolitical instability often leads to increased reinsurance costs, impacting insurance premiums for international trade. However, he expressed optimism about the situation improving with regional stability.
To tackle these issues, Siddiqui proposed a consultative session involving KCCI, FIO, and the Securities and Exchange Commission of Pakistan (SECP) to explore practical solutions. A joint committee comprising representatives from these bodies was suggested to prioritise policy improvements and address industry-specific challenges.
As an independent Alternate Dispute Resolution forum, the Federal Insurance Ombudsman provides free and impartial resolution of insurance disputes. Mobashir Siddiqui highlighted the institution”s efficiency, resolving nearly 95% of cases within 60 days, and offering financial relief exceeding Rs1.5 billion in the previous year.
He also announced reforms in collaboration with SECP, such as bilingual insurance policy documents and the inclusion of FIO contact details to facilitate timely redress for policyholders. To enhance engagement, Siddiqui proposed appointing a dedicated KCCI focal person to streamline insurance grievance handling and organising regular awareness seminars for KCCI members.
President KCCI Rehan Hanif praised the FIO Secretariat”s efforts in safeguarding policyholders” rights and strengthening confidence in Pakistan”s insurance sector. He emphasised the need for a transparent and efficient insurance system to promote investment, trade, and sustainable economic growth.
Rehan Hanif reiterated Karachi”s significant contribution to the national economy and stressed the importance of a business-friendly regulatory framework. He assured the FIO Secretariat of KCCI”s full cooperation in organising educational initiatives and facilitating better regulatory understanding.
The collaboration between KCCI and the FIO Secretariat is expected to enhance access to justice for policyholders and foster a more resilient and business-friendly economic environment in Pakistan.