Overview
- The SECP published the draft Market Conduct Rules for Insurers, 2026 for a 30-day public consultation on Thursday, proposing binding conduct standards for individual personal-line policies.
- The draft sets decision deadlines of 20 working days for life claims, five working days for motor claims after the final survey report, and seven working days for other non-life claims, with approved claims payable within seven working days.
- Health provisions require in-patient claims to be settled within 20 working days and obligate insurers to provide hospital discharge authorisation within three hours so patients cannot be held pending insurer approval.
- Operational rules would limit documentary requests to only documents directly relevant to a claim, require digital and telemarketing policies to be issued within three working days, and mandate motor disclosures of vehicle market value with generally a 15-working-day repair timeline.
- Non-compliance could draw fines up to Rs1 million plus up to Rs10,000 per day for continuing breaches, the consultation will inform any revisions, and adoption would likely speed payouts for policyholders while requiring insurers to change claims operations and disclosure practices.