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
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