Appellate forum quashes FIA probe against insurance firm
According to details, an insured person had approached FIA related to a dispute over insurance amount. Consequently, FIA launched inquiry and investigation proceedings against the insurance company. The insurance company challenged the jurisdiction of FIA in the matter before a higher appellate forum.
The insurance company was of the view that besides having numerous other functions, Securities and Exchange Commission of Pakistan (SECP) is also a regulator of business of insurance companies. It further brought to the notice of the appellate forum that the SECP had taken up the case of the insured person and proceedings for settlement between the parties were in progress. The insured person was not agreeing to the amount which was released to him.
The insurance company maintained that if there was any genuine dispute between parties it could be resolved before forum provided under Insurance Ordinance, 2000. Such dispute could not be made a base for proceedings under penal laws, as provisions of Insurance Ordinance are special law, which has to prevail over general law. It further pointed out that special mechanism has been provided for dealing with offences for contravention of Insurance Ordinance.
Federal Investigation Agency, on the other hand, can only inquire and investigate certain offences either committed in connection with matters concerning federal government or for matters connected therewith.
However, the insured person, as well as the FIA, opposed the viewpoint adopted by the insurance company. They were of the view that the Agency has lawful authority to deal with the matter due to the stubbornness of the insurance company, adamant not to entertain the claim. They further pointed out that undue delay was being made by the proceedings under the Insurance Ordinance, and the insured person as no option but to avail all possible options to secure his claim against the insured amount.
However, the higher appellate forum did not agree with the insured person and quashed inquiry proceedings initiated by FIA while terming them as uncalled for and without lawful authority.
Copyright Business Recorder, 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
9 hours ago
- Business Recorder
Formation of commission to probe blasphemy cases: IHC suspends single bench's order
ISLAMABAD: The Islamabad High Court (IHC), Thursday, suspended a single bench's order of directing the government to constitute a commission within 30 days to probe blasphemy cases. A division bench comprising Justice Khadim Hussain and Justice Azam Khan issued the order in an Intra Court Appeal (ICA) filed by Rao Abdul Rahim advocate against the decision of Justice Sardar Ijaz Ishaq Khan. In the ICA, the petitioner urged the court to declare the single-bench decision null and void, and to dismiss the original petition as inadmissible. He maintained that the single bench exercised suo motu powers and issued directions without hearing the respondents' version. The petitioner further argued that the original petitioners had multiple legal forums available to them, including trial courts, but chose not to approach them. He said that forming a commission to probe criminal allegations contradicts established legal procedures and precedents set by the higher courts. In this connection, Justice Ejaz directed the federal government to constitute a commission within 30 days to probe blasphemy cases. He issued the directions in petitions filed by the victim families seeking formation of judicial commission to investigate the cases. The bench directed the federal government to form a commission within 30 days to investigate blasphemy cases. It also directed that the commission formed by the federal government must complete its proceedings within four months. In this matter, the victim families, represented by advocates Abid Saqi and Usman Warraich, had petitioned the high court for the formation of a judicial commission. They mentioned a report by the Punjab Special Branch titled 'The Blasphemy Business'. The report alleged that a suspicious gang had been entrapping youth in blasphemy cases and extorting money from them after filing complaints with the FIA in Rawalpindi and Islamabad. The petitioners asserted that this gang is the complainant in nearly 90 per cent of blasphemy cases registered by the FIA. It added that operating under the name 'Legal Commission on Blasphemy,' the group is said to be consisted of both men and women targeting poor and lower-middle-class Muslim families. They revealed that a concerning pattern emerges in the FIRs: out of over 400 alleged victims, 70 per cent are young men and women in their twenties or younger while many of the victims are professionals, including engineers, Hafiz-e-Quran, and degree holders in various fields. They further said that they had approached the federal government with a formal request dated August 4, 2024, seeking the formation of an inquiry commission on the Special Branch's report. However, no action has been taken to date. Copyright Business Recorder, 2025
Business Recorder
11 hours ago
- Business Recorder
CPF scheme: KP govt, Pak-Qatar Takaful ink deal
PESHAWAR: The government of Khyber Pakhtunkhwa signed an agreement with Pak-Qatar Takaful as fund manager under the Contributory Provident Fund (CPF) scheme on Thursday. The agreement was signed in a simple but impressive ceremony held at the Finance Department's Conference Room. Besides, Advisor on Finance to KP government, Muzzammil Aslam, Secretary Finance Amer Sultan Tareen, and Additional Secretary Budget Arshad Ali, Team lead Abdul Qayyum, Deputy Director Pension Cell Naveed Alam, along with the delegation representing Pak-Qatar Takaful attended the ceremony. Speaking on the occasion, Finance Advisor Muzzammil Aslam said that the Khyber Pakhtunkhwa Government is expanding the Contributory Provident Fund scheme to further strengthen its pension reform efforts. The CPF, launched in 2022 for provincial civil servants, is a flagship pension initiative, and more than 59,000 government employees have been registered under the scheme so far. This programme is based on a joint contribution model aimed at securing the financial future of government employees — wherein the employee contributes 10% of their basic pay while the government contributes 12% monthly. It was highlighted at the event that a key feature of the CPF scheme is the outsourcing of its investment component, which operates under the Voluntary Pension System (VPS) model - a structured pension framework regulated by the Securities and Exchange Commission of Pakistan (SECP) since 2005. The Khyber Pakhtunkhwa Government has adopted this model after tailoring it to meet the specific needs of the province. The Advisor on Finance also explained that the CPF scheme engages only those Asset Management Companies (AMCs) that are licensed by the SECP and have a minimum credit rating of AM2 - reflecting high standards of professional fund management. Since the scheme's launch, the government had entered into agreements with 12 such licensed AMCs. During the ceremony, it was shared that Pak-Qatar Family Takaful Limited recently obtained its VPS license and applied to become a fund manager under the CPF scheme. After a comprehensive evaluation, the Khyber Pakhtunkhwa Government formally signed the agreement with Pak-Qatar on July 23, 2025, through the office of the Secretary Finance. With this agreement, Pak-Qatar becomes the 13th approved fund manager on the CPF investment panel. This expansion reflects the Khyber Pakhtunkhwa Government's commitment to providing diversified, professionally managed, and Shariah-compliant investment options under its pension framework to ensure transparency, long-term sustainability, and employee confidence. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
IFC, SECP launch ESG Pakistan Project
ISLAMABAD: International Finance Corporation (IFC) in collaboration with the SECP has officially launched the ESG Pakistan Project, a three-year initiative aimed at aligning Pakistan's corporate sectors with international ESG (Environmental, Social, and Governance) standards. The launch was marked by an awareness workshop in Islamabad and attended by key stakeholders from the capital market institutions, corporate sector and professional bodies. SECP Chairperson, Akif Saeed, in his keynote remarks, emphasized the growing relevance of sustainability for capital markets and the urgent need to embed ESG principles across Pakistan's business frameworks. 'The global shift towards sustainable finance is irreversible. For a climate-vulnerable country like Pakistan, this transition is not only timely but essential.' He added that SECP has made substantial progress over the past three years through the ESG Regulatory Roadmap, ESG Disclosure Guidelines and the launch of the ESG Sustain Portal. 'Incorporating sustainability practices is now a critical priority for businesses, enabling them to strengthen their reputation, improve operational efficiency, attract investment, and drive sustainable growth' said Zeeshan Sheikh, IFC's Country Manager for Pakistan & Afghanistan. 'This project, including today's workshop, aims to accelerate the adoption of international sustainability standards in Pakistan by fostering awareness, building capacity, and supporting the implementation of related regulatory frameworks by drawing on IFC's global expertise in this field.' IFC will support SECP through a comprehensive set of interventions including awareness and sector-specific ESG capacity building workshops, development of ESG guidance materials and impact assessment of ESG practices among listed companies using data on ESG Sustain. Copyright Business Recorder, 2025
