INSURANCE RULES, 2002
(Gazette of Pakistan, Extraordinary, Part II,
8th August, 2002)
S.R.O. 498(I)/2002,
dated 7-8-2002.-----In exercise of the
powers conferred by subsection (1) of section 167 of the Insurance Ordinance,
200 (XXXIX of 2000), the Federal Government is pleased to make the following
rules the same have been previously published as required by subsection (1) of
the said section, namely:--
1. Short title and
commencement.----(1) These rules may be
called the Insurance Rules, 2002.
(2) They shall come into
force at once.
2. Definitions.--(1) In these rules, unless there is anything
repugnant in the subject or context.--
(a) "agent"
means an insurance agent appointed by an insurer in accordance with the
provisions of the Ordinance and these rules;
(b) "authorised
surveying officer" means an authorised surveying officer registered in
accordance with the provisions of the Ordinance and these rules:
(c) "class"
means the class of insurance surveyors as provided in sub-rule (1) of rule 16;
(d) "insurance
broker" means an insurance broker licensed in accordance with the
provisions of the Ordinance and these rules;
(e) "related
party" of a person ("the first person") includes-
(i) member of the family
of the first person;
(ii) lender any person
in which the first person has any interest as a any or shareholder, other than
as a passive investor;
(iii) any partner or
employer or employee of the first person;
(iv) if the person is
owner or a partner and directly or indirectly holds or controls shares carrying
not less than ten percent of voting power in such company; and
(v) any person to whom
the first person is indebted;
(f)
"Ordinance" means the Insurance Ordinance, 2000 (XXXIX of 2000); and
(g) "Surveyor"
means an insurance surveyor licensed in accordance with the provisions of the
Ordinance and these rules.
(2) The words and
expression used but defined shall have the meaning assigned to them in the
Ordinance.
3. Restricted classes of
insurance business.--For the purposes of subsection
(6) of section 4 of the Ordinance, the following shall be the restricted
classes of insurance business, namely:-
(a) For life insurance:
(i) pension fund
business; and
(ii) accident and health
business.
(b) For non-life
insurance;
(i) motor third-party
compulsory business;
(ii) workers'
compensation business;,
(iii) accident and
health business;
(iv) proportional treaty
business; and
(v) non-proportional
treaty business.
4. Transfer of
policies.--For the purposes of subsection
(5) of section 16 of the Ordinance, the amount of assets to be transferred
shall be determined in such a manner as is fair and equitable between the
policy holders of the statutory funds concerned as advised by the appointed
actuary.
5. Expense adjustment.---For the purpose of subsection (9) of section 23
of the Ordinance, the prescribed proportion shall be one hundred per cent.
6. Assets to be invested
in securities.--(1) Thirty per cent of
the assets of the shareholders' fund of a life insurer, or of a statutory fund
of a life insurer, other than a statutory fund which contains only investment
linked policies, shall be invested in Government securities, under subsection
(7) of section 35 of the Ordinance.
(3) A further ten
percent of the assets of the shareholders' fund of a life insurer, or of a
statutory fund of a life insurer, other than a statutory fund which contains
only investment linked policies, shall be invested in a combination of
Government securities and other approved securities, under subsection (7) of
section 35 of the Ordinance.
7. Reinsurance outside
Pakistan.--(1) For the purposes of
subsection (5) of section 41 of the Ordinance, no insurer shall reinsure
facultatively outside Pakistan any insurance business or any part thereof
underwritten by it in Pakistan without the permission of the Commission.
(2.) The Commission may,
grant permission under sub-rule (1) in any of the following circumstance,
namely:-
(a) The insurance or any
part thereof is in-excess of the insurer's treaty arrangements, and the
Commission is provided with documentary evidence that such excess cannot be
reasonably placed within Pakistan;
(b) the insurance
business, although covered by a treaty arrangement shall be desired to be
reinsured facultatively for protecting the treaty or for any other special
reason:
Provided that such
facultative reinsurance shall not run contrary to subsisting contractual
obligations under the treaty; and
(c) the insurance
business is of special nature and there are no treaty arrangements for it.
(3) No insurer in
Pakistan shall accept reinsurance on facultative basis in excess of its net
retention if the insurer seeking such reinsurance so indicates in the
reinsurance slip, request note or otherwise in writing.
8. Procedure when
nominee is a minor.--(1) For the purposes of
the proviso to subsection (1) of section 72 and the proviso to subsection (1)
of section 73 of the Ordinance, an appointment shall be made in writing and
signed by the policy holder making the appointment and hall be communicated to
the insurer.
(2) Any appointment
referred to-in sub-rule (1), in order to be effectual shall, unless
incorporated in the text of the policy itself, be made by an endorsement on the
policy.
(3) Any appointment referred
to in sub-rule (1) may, at any time before the, policy matures for payment, be
cancelled or changed by an endorsement, or further endorsement, as the case may
be, and communicated to the insurer.
9. Nomination under
group life insurance policies.--A nomination under section 73 of the Ordinance, shall be made in
writing and shall be either-
(a) signed by the person
whose life is insured under a contract of group life insurance: or
(b) affixed with the
thumb impression of the person whose life is insured under a contract of group
life insurance, if he is illiterate, alter it has been read to him in the
presence of a responsible person, who shall sign the nomination as witness to
the fact that it has been so read, and shall be furnished to the policy holder.
10. Paid-up policy
values.--For the purpose of
clause (b) of sub-section (3) of section 92 of the Ordinance, the paid-up
policy value shall, before the inclusion of bonuses, be not less than-
(a) where the whole of
the benefits payable under the policy are payable on a particular date or on
the happening of a particular event, the amount bearing to the total sum
insured by the policy exclusive of bonuses the same proportion as the total
period for which premiums have already been paid bears to the maximum period
for which premiums were originally payable; and
(b) where the benefits
payable under the policy are payable on two or more dates, the amount bearing
to total of each planned payment exclusive of bonuses the same proportion as
the total period for which premiums have been paid bears to the maximum period
for which premiums were, originally payable less any benefit paid earlier.
11. Registration of
insurance agents.--Every insurer shale in
the register required to be kept by it for the purposes of subsection (1) of
section 98 of the Ordinance, maintain the following details in respect of each
insurance agent, namely:--
(a) For a natural
person:
(i) his name:
(ii) his date of
birth;
(iii) his residential
address;
(iv) his postal address
(if different);
(v) the names of persons
employed by the insurance agent for the purpose of carrying out the business of
an insurance agent;
(vi) the date of
appointment and his registration; and
(vii) such other
particulars as may be specified by the Federal Government.
(b) For a body
corporate:
(i) its name;
(ii) the address of its
registered office;
(iii) its postal address
(if different);
(iv) a description of
the business carried on by it (other than insurance agent):
(v) the names of
shareholders holding more than ten percent of the issued share capital;,
(vi) the date of
appointment and its registration; and
(vii) such other
particulars as may be specified by the Federal Government:
(c) For a firm:
(i) its name:
(ii) the address of its
principal office;
(iii) its postal address
(if different);
(iv) a description of
the business carried on by it (other than insurance agent);
(v) the names of the
partners in the firm; and
(vi) the date of
appointment and its registration.
12. Statement and
declaration required of insurance agents.--(1) Every insurer shall, before appointing an insurance agent, and
thereafter at intervals of not less than twelve months, obtain from every
insurance agent continuing to be appointed by it a statement of the information
required under rule 11 to be held by it in its register.
(2) Every statement
obtained under sub-rule (1) shall be accompanied by a declaration by the
insurance agent stating that-
(a) the information
given by him in accordance with sub-rule (1) is complete and correct;
(b) he has complied with
the requirements of the Ordinance and the rules made thereunder concerning
the required qualifications of an agent;
(c) he is (in the case
of an existing agent) engaged or (in the case of an agent seeking appointment)
proposes to engage bona fide in obtaining insurance policies for the insurer to
whom the declaration is made;
(d) he undertakes to
comply, and (in the case of an existing agent) declares that he has during the
previous twelve months complied with the relevant provisions of the Ordinance
and the rules made thereunder concerning the conduct of an agent; and
(e) he, or, in the case
of a body corporate, any director of the body corporate, or officer of the body
corporate engaging in the business of insurance agency. Or in the case of a
firm. any partner of the firm, or officer of the firm engaging in the business
of insurance agency, is not disqualified from acting as an insurance agent by
virtue of
(i) being a minor;
(ii) having been found
of unsound mind by a Court of competent jurisdiction;
(iii) having been found
guilty, within the five years preceding the date of the declaration, of
criminal misappropriation or criminal breach of trust, cheating or forgery or
an abetment of or attempt to commit any such offence by a Court of competent
jurisdiction;
(iv) having served any
custodial sentence imposed by a Court of competent jurisdiction, ending within
the five years preceding the date of the declaration.;
(v) having been found
guilty by a Court of competent jurisdiction of any offence involving insurance;
or
(vi) having been
otherwise declared as disqualified by the Insurance Tribunal, other than for a
term which had expired prior to the date of the declaration.
(3) Every statement and
declaration required under this rule shall be made in writing and the
declaration shall be signed-
(a) in the case of a
natural person, by the applicant and duly attested in the presence of witnesses
who shall, not be related to the applicant;
(b) in the case of a
body corporate, by not fewer than two directors of the body corporate and duly
attested; and
(c) in the case of a
firm, by not fewer than two partners of the firm and duly attested.
(4) The statement and
declaration shall be retained by the insurer for a period of not less than five
years from the date of the declaration and shall be produced to the Federal
Government on demand.
(5) An agent shall
notify to the insurer of any change in the details required under sub-rule (1)
within three months of that change having effect, such notification to be in
writing and signed-
(a) in the case of a
natural person, by the agent and duly attested in the presence of witnesses who
shall not be related to the agent;
(b) in the case of a
body corporate, by not fewer than two directors of the body corporate and duly
attested; and
(c) in the case of a
firm, by not fewer than two partners of the firm and duly attested.
(6) if an agent or in
the case of a body corporate any director or officer of the body corporate
engaging in the business of insurance agency, or, in the case of a firm, any
partner or officer of the body corporate engaging in the business of insurance
agency becomes disqualified for any reason from acting as an insurance agent,
the agent shall within seven days notify the insurer of the disqualification
and shall forthwith cease, or cause the disqualified person to cease, engaging
in the business of insurance agency.
(7) In addition to the
statement and declaration under this rule, the Insurer may, as and when it deem
necessary, call for other information, documents, photographs, etc.
13. Requirements for
insurance broker's licence--For the purposes of subsection (3) of section 102 of the Ordinance,
the following shall be the prescribed qualifications of a company for issuance
of an insurance broker's licence, namely:--
(a) A minimum paid-up
share capital of not less than ten million rupees for local, brokers and one
million US dollars for a foreign insurance broker to be registered in Pakistan;
(b) cash or approved
securities to the value of not less than an half minion rupees, deposited with
a bank;
(c) professional
indemnity insurance, to a limit of ten million rupees for any one occurrence;
(d) not fewer than two
employees (at least one of whom must be a director) having a minimum of five
years experience working in or in relation to the insurance industry, as-
(i) an employee of an
insurer: or
(ii) an agent, or
(iii) an employee of an
agent; or
(iv) an employee of an
insurance broker; or
(v) in such capacity,
related to the business of insurance, as satisfies the Federal Government that
the person has appropriate experience and knowledge to undertake the business
of insurance broking; and
(e) neither the body
corporate nor any director of the body corporate, nor any officer of the body
corporate engaging in the business of insurance broking-
(i) is a minor:
(ii) has been found of
unsound mind by a Court of competent jurisdiction;
(iii) has been found
guilty, within the five years preceding the present date, of criminal
misappropriation or criminal breach of trust, cheating or forgery or an
abetment of or attempt to commit any such offence by a Court of competent jurisdiction;
(iv) has served any
custodial sentence imposed by a Court of competent jurisdiction, ending within
the five years preceding the present date:
(v) has been found
guilty by a Court of competent jurisdiction of any offence involving insurance;
or
(vi) has been otherwise
declared as disqualified by the Insurance Tribunal other than for a term which
had expired prior to the present date.
14. Licensing of
insurance brokers.--(1) An application for
grant of a licence or renewal of licence to act as an insurance broker shall,
for the purposes of subsection (4) or (5) of section 102 of the Ordinance,
shall contain the following details in respect of the applicant namely :----
(i) its name
(ii) the address of its
registered office
(iii) its postal address
(ii different);
(iv) a description of
the business carried on by it (other than insurance broking);
(v) the names of
insurance companies, if any, which have appointed the applicant as insurance
agent;
(vi) the names of
shareholders holding more than ten percent of the issued share capital;
(vii) the names of all
directors of the body corporate; and
(viii) evidence, in
original or certified copy form, of compliance with the prescribed
qualifications.
(2) Every application
made under sub-rule (1) shall be accompanied by a declaration by the applicant
stating that-
(a) the information
given by him in accordance with sub-rule (1) is complete and correct;
(b) he has complied with
the requirements of the Ordinance and the rules made thereunder concerning the
required qualifications of an insurance broker;
(c) he undertakes to
comply, and (in the case of an existing insurance broker) declares that he has
during the previous twelve months complied with being the Ordinance and the
rules made thereunder concerning the conduct of an insurance broker; and
(d) neither the body
corporate, nor any director of the body corporate, nor any officer of the body
corporate engaging in the business of insurance broking, is disqualified from
acting in the business of insurance broking by virtue of--
(i) being a minor;
(ii) having been found
of unsound mind by a Court of competent jurisdiction;
(iii) having been found
guilty, within five years preceding the date of the declaration, of criminal
misappropriation or criminal breach of trust, cheating or forgery or an
abetment of or attempt to commit any such offence by a Court of competent
jurisdiction;
(iv) having served any
custodial sentence imposed by a Court of competent jurisdiction, ending within
five years preceding the date of the declaration;
(v) having been found
guilty .by a Court of competent jurisdiction of any offence involving
insurance; or
(vi) having been
otherwise declared as disqualified by the Insurance Tribunal, other than for a
term which had expired prior to the date of the declaration.
(3) Every application
and declaration required under this rule shall be made in writing and the
declaration shall be signed by at least two directors of the body corporate.
(4) Any application for
issue or renewal of authorization to act as an insurance broker shall be
accompanied by a fee of ten thousand rupees, which shall be refunded if the
authorization is not granted.
(5) An insurance broker
shall notify to the insurer of any change in the details required under
sub-rule (1) within three months of that change having effect, such
notification being in written form and signed by at least two directors of the
body corporate.
15. Protection of run
off.--For the purposes of
subsection (1) of section 107, the level of professional indemnity insurance
shall be ten million rupees and the period for which such run-off insurance is
required shall be five years or until all liabilities of an insurance broker
are irrevocably transferred to another licensed insurance broker, whichever is
the earlier.
16. Classes of insurance
surveyors.--(1) For the purposes of
section 114 of the. Ordinance, the following shall be the classes of insurance
surveyors, namely:--
(a) Fire and property
damage business.
(b) Marine, aviation and
transport business
(c) Motor third-party
compulsory business
(d) Liability business.
(e) Workers compensation
business
(f) Credit and surety
ship business.
(g) Accident and health
business.
(h) Agriculture insurance
including crop insurance.
(i) Miscellaneous
business.
(2) A licence granted by
the Commission under section 112 of the Ordinance shall specify the class of
insurance surveyors for which the licence is granted.
(3) A certificate of
registration as an authorized Surveying Officer under section 113 of the
Ordinance shall specify the clad of insurance surveyors for which the
certificate of registration is granted.
17. Conditions for
licensing of insurance surveyors.--(1) For the purposes of subsection (3) of section 112 of the
Ordinance, the, following shall be the be conditions, namely:-
(a) For the purposes of
clause (a) of that subsection, the prescribed minimum paid-up share capital
shall be one million rupees;
(b) For the purposes of
clause (b) of that sub-section, the prescribed minimum level of professional
indemnity insurance shall be one million rupees for any one event and such
insurance shall extend to a body corporate and all directors or
officers of the body corporate who act as authorized Surveying Officers;
(c) for the purpose of
clause (e) of that subsection, there shall be no approved professional
association; and
(d) for the purposes of
clause (f) of that subsection, the following shall be the prescribed other
conditions, namely:--
(i) At least one officer
or director who is individually certified as an authorised Surveying Officer
for the class or classes of insurance surveyor in which a body corporate acts
or proposes to act; and
(ii) neither a body
corporate in respect of such of the following conditions as apply to the body
corporate, nor any director of the body corporate in respect of such of the
following conditions as apply to a natural person-
(a) is a minor;
(b) has been found of
unsound mind by a Court of competent
(c) has been found
guilty, within the five years preceding the present date, of criminal
misappropriation or criminal breach of trust, cheating or forgery or an
abetment of or attempt to commit any such offence by a Court ofcompetent
jurisdiction;
(d) has served any
custodial sentence imposed by a Court of competent jurisdiction, ending within
five preceding the present date:
(e) has been found
guilty by a, Court of competent jurisdiction of any offence involving
insurance; or
(f) has been otherwise
declared as disqualified by the Insurance Tribunal. other than for a term which
had expired prior to the present date.
(2) A body corporate
which is, at the date of coming into force of these Rules, the holder of a
valid licence to act as an insurance surveyor, and which is not otherwise
disqualified from acting as an insurance surveyor, shall be deemed to have the
qualification as set out in sub-clause (ii) of clause (d) of sub-rule (1) for
the period during which that licence is valid, and at any time within five
years of the date of coming into force of these rules at which that licence, or
any licence issued in renewal of that licence, is presented for renewal.
18. Transitional
provisions relating to natural persons and firms.---Where under the first proviso to subsection (3)
of section 112 of the Ordinance, a licensed surveyor shall be exempted from the
requirement to comply with clause (a) of that subsection, such exemption shall
be conditional on the licensed surveyor maintaining at all times the following
qualifications, namely:--
(a) In the case of a
natural person:
(i) the qualification
prescribed in rule 20 for an authorised Surveying Officer for the class or
classes in which the person acts or proposes to act as insurance surveyor;
(ii) registration of the
person as an authorized Surveying Officer in accordance with the provisions of
rule 21; and
(iii) professional
indemnity insurance to the extent of five million rupees for anyone event
provided that this provision shall have effect from a date twelve months after
the commencement date;
(b) In the case of a
firm:
(i) at least one officer
or partner who is individually registered as an authorised Surveying Officer
for the class or classes of insurance surveyor in which the firm acts or
proposes to act: and
(ii) professional
indemnity insurance, extending coverage to the firm and all officers or
partners of the firm who act as authorised Surveying Officers, to the extent of
five million rupees for any one event provided that this provision shall have
effect from a date twelve months after the commencement date;
(c) In the case of a
body corporate:
(i) at least one officer
or director who is is individually registered as an authorised Surveying
Officer for the class or classes of insurance surveyor in which the body
corporate acts or proposes to act: and
(ii) professional
indemnity insurance, extending coverage to the firm and all officers or
directors of the body corporate who act as authorised Surveying Officers, to
the extent of five million rupees for anyone event provided that this provision
shall have effect from a date twelve months after the commencement date
(d) In all cases:
Compliance at all times
with the qualifications as set out in clause (c) of sub-rule (1) of rule 20,
mutatis mutandis so far as they may be applied to a natural person, a firm, a
body corporate, an officer or partner of a firm and an officer or director of a
body corporate.
19. Grant of licences to
insurance surveyors.------(1) An
application for grant a licence for any class of insurance surveyors, for which
a current licence is not held shall, for the purpose of subsection (4) of
section 112 of the Ordinance, contain the following details in respect of the
applicant, namely:--
(i) The name of the body
corporate:
(ii) the address of its
registered office;
(iii) its postal address
(if different);
(iv) a description of
the business carried on by it (other than insurance surveying):
(v) the names of
shareholders holding more than ten percent of its issued share capital;
(vi) the name of all
officers or directors of the body corporate who are individually registered to
act as authorised insurance surveyors;
(vii) the names of other
persons employed by the body corporate for the purpose of carrying out the
business of an insurance surveyor;
(viii) the class of
surveyors for which licence is sought; and
(ix) evidence, in
original or certified copy form, of compliance with the prescribed
qualifications.
(2) An application for
renewal of a licence for a class of insurance surveyors for which a licence is
held shall, for the purposes of sub-section (4) of section 112 of the
Ordinance, contain the following details in respect of the applicant, namely:--
(a) For natural person
(i) his name:
(ii) his date of birth;
(iii) his residential
address;
(iv) his postal address
(if different);
(v) a description of his
occupation (other than insurance surveying);
(vi) the name of his
employer (if employed): and
(vii) the class of surveyors
for which renewal of licence is sought
(b) For a body
corporate:
(i) its name:
(ii) the address of its
registered office;
(iii) its postal address
(if different);
(iv) a description of
the business carried on by it (other than insurance surveying):
(v) the names of
shareholders holding more than ten percent of the issued share capital;
(vi) the names of all
officers or directors of the body corporate who are individually licensed as an
insurance surveyor;
(vii) the names of other
persons employed by the body corporate for the purpose of carrying out the
business of an insurance surveyor; and
(viii) the class of
surveyors for which renewal of licence is sought.
(c) For a firm:
(i) its name;
(ii) the address of its
principal office;
(iii) its postal address
(if different);
(iv) a description of
the business carried on by it (other than insurance surveying);
(v) the names of the
partners in the firm:
(vi) the names of all
officers or partners of the firm who are individually licensed as an insurance
surveyor;
(vii) the names of other
persons employed by the firm for the purpose of carrying out the business of an
insurance surveyor; and
(viii) the class of
surveyors for which renewal of licence is sought.
(3) Every application
made under sub-rule (1) or sub-rule (2) shall be accompanied by a declaration
by the applicant stating that-
(a) the information
presented in accordance with sub-rule (1) or sub rule (2), as the case may be,
is complete and correct;
(b) the applicant has
complied with the requirements of the Ordinance and rules concerning the
required qualifications of an insurance surveyor;
(c) the applicant is not
appointed as an insurance agent of an insurance company;
(d) the applicant
undertakes to comply and, in the case of an existing insurance surveyor,
declares that he has during the previous twelve months complied, with the
Ordinance and rules concerning the conduct' of insurance surveyors;
(e) the insurance
surveyor or, in the case of a body corporate, any director of the body
corporate or officer of the body corporate engaging in the business of
insurance surveying or, in the case of a firm, any partner of the firm, or
officer of the firm .engaging in the business of insurance surveying, is not
disqualified from acting as an insurance surveyor by virtue of-
(i) being a minor;
(ii) having been found
of unsound mind by a Court of competent jurisdiction;
(iii) having been found
guilty, within five years preceding the date of the declaration, of criminal
misappropriation or criminal breach of trust, cheating or forgery or an
abetment of or attempt to commit any such offence by a Court of competent
jurisdiction;
(iv) having served any
custodial sentence imposed by a Court of competent jurisdiction,. ending within
five years preceding the date of declaration;
(v) having been found
guilty by a Court of competent jurisdiction of any offence involving insurance;
or
(vi) having been
otherwise declared as disqualified by the Insurance Tribunal, other than for a
term which had expired prior to the date of the declaration.
(4) An application and
declaration required under this rule shall be made in written form and the
declaration shall be signed-
(a) in the case of a
natural person, by the applicant in the presence of a witness who shall be a
natural person not a related party of the applicant, and who shall also sign
the declaration as witness;
(b) in the case of a
body corporate, by at least two directors of the body corporate: and
(c) in the case of a
firm, by at lease two partners of the firm.
(5) An insurance
surveyor shall inform the Federal Government of any change in the details
required to be given under sub-rule (1) or (2) within three months of that
change having, taken effect and, such information shall be in written form and
signed-
(a) in the case of a
natural person, by the insurance surveyor and duly attested in the presence of
witnesses who shall not be related party of the insurance surveyor:
(b) in the case of a
body corporate, by not fewer than two directors of the body corporate and duly
attested; and
(c) in the case of a
firm, by not fewer than two partners of the firm and duly attested.
(6) An application for
grant of a licence or renewal of a licence for any class of insurance surveyors
shall be accompanied by a fee of two thousand rupees which shall be refunded if
the application is not granted.
20. Authorised surveying
officers.----(1) For the purposes of
clause (c) of subsection (3) of section 113 of the Ordinance, and subject to
sub-rules (2) and (3), any person entitled to apply to be registered as an
authorised Surveying Officer shall possess the following qualifications,
namely:-
(a) The minimum
educational qualification for an insurance surveyor or authorized Surveying
Officer shall be Bachelor's Degree in any discipline from a recognized
University;
(b) a minimum of three
years' practical experience of insurance survey in the class or classes of
insurance surveyors for which registration is sought, either conducted under
the supervision of, an insurance, surveyor licensed at that time under the
Ordinance or registered under the repealed Act, or conducted as an employee of
an insurance company:
(c) the person—
(i) is not a minor
(ii) has not been found
of unsound mind by a Court of competent jurisdiction;
(iii) has not been found
guilty, within f five years preceding the present date, of criminal
misappropriation or criminal breach of trust, cheating or forgery or an
abetment of or an attempt to commit any such offence by a Court of competent
jurisdiction;
(iv) has not served any
custodial sentence imposed by a Court of competent jurisdiction, ending within
five years preceding the present date;
(v) having been found
guilty by a Court of competent jurisdiction of any offence involving insurance:
(vi) has not been
otherwise declared as disqualified by the Insurance Tribunal, other than for a
term which had expired prior to the present date: and
(vii) is not an
appointed agent (otherwise than in the sense that a person conducting a survey
on the instructions of an insurance company may be described as that company's
agent) or an employee of an insurance company carrying on business in Pakistan.
(2) A person who was, at
the commencement date of the Ordinance, the holder of a valid certificate
issued under sub-section (4) of section 44A of the repealed Act, and who is not
otherwise disqualified from holding a certificate of registration as an
authorised Surveying Officer, shall be deemed to have the qualifications as
set-out in sub-rule (1) for the period during which that certificate is valid,
and at any time within five years of the commencement date of the Ordinance at
which--
(a) that certificate or
any licence issued under the Ordinance in renewal of that certificate is
presented for convention to a certificate of registration; or
(b) any certificate of
registration as an authorised Surveying Officer issued in conversion of that
certificate or in renewal of such certificate of registration as an authorised
Surveying Officer, is presented for renewal.
(3) A person who is, at
the date of coming into force of these Rules registered as an authorised
Surveying Officer or holds a valid certificate issued under subsection (4) of
section 44A of the repealed Act, and who is not otherwise disqualified from
registration as an authorised Surveying Officer, shall be deemed to have the
qualifications as set out in clause (a) or
(c) of sub-rule (1) for
the period during which that registration or that certificate is valid, and at
any time within five years of the date of coming into force of these Rules; at
which application is made for renewal of that registration, that certificate,
or any registration issued in renewal or conversion of that certificate.,
21. Registration of
authorised Surveying Officers.--(1) An application for registration as an authorised Surveying
Officer for any class of insurance surveyors for which a valid certificate is
not held shall, for the purposes of subsection (4) of section 113 of the
Ordinance, contain the following details in respect of the applicant, namely:--
(i) His name
(ii) his date of birth;
(iii) his residential
address;
(iv) his postal address
(if different);
(v) a description of his
occupation (other than insurance surveying);
(vi) the name of his
employer;
(vii) the class of
surveyors for which registration is sought; and
(viii) evidence, in
original or certified copy form, of compliance with prescribed qualifications.
(2) An application for
renewal of registration as an authorised Surveying Officer for a class of
insurance surveyors for which registration is held shall, for the purposes of.
subsection (4) of section 113 of the Ordinance, contain the following details
in respect of the applicant, namely:--
(i) His name;
(ii) his date of birth;
(iii) his residential
address;
(iv) his postal address
(if different);
(v) a description of his
occupation (other than insurance surveying);
(vi) the name of his
employer;
(vii) the class of
surveyors for which renewal of registration is sought
(3) Every application
made under sub-rule (1) or (2) shall be accompanied by a declaration by the
applicant stating that--
(a) the information
presented in accordance with sub-rule (1) or (2), as the case may be, is
complete and correct;
(b) the applicant has
complied with the requirements of the Ordinance and these rules concerning the
required qualifications of an authorized Surveying Officer;
(c) the applicant is not
appointed as an insurance agent of an insurance company carrying on business in
Pakistan;
(d) the applicant in not
an employee of an insurance company carrying on business in Pakistan;
(e) the applicant
undertakes to comply, and in the case of an existing authorised Surveying
Officer declares that he has during the previous twelve months complied with
the provisions of the Ordinance and rules concerning the conduct of an
authorised Surveying Officer; and
(f) the applicant is not
disqualified from acting as an authorised Surveying Officer by virtue of--
(i) being a minor;
(ii) having been found
of unsound mind by a Court of competent jurisdiction;
(iii) having been found
guilty, within five years preceding the date of the declaration, of criminal
misappropriation of criminal breach of trust, cheating or forgery or an
abetment of or attempt to commit any such offence by a Court of competent
jurisdiction;
(iv) having served any
custodial sentence imposed by a Court of competent jurisdiction, ending within
five years preceding the date of the declaration;
(v) having been found
guilty by a Court of competent jurisdiction of any offence involving insurance;
or
(vi) having been
otherwise declared as disqualified by the Insurance Tribunal. other than for a
term which had expired prior to the date of the declaration.
(4) An application and
declaration required under this rule shall be made in 'writing and the
declaration shall be signed by the applicant in the presence of a witness who
shall be a natural person, not a related party of the applicant, and who shall
also sign the declaration as witness.
(5) An authorized
Surveying Officer shall inform the Federal Government of any change in the
details required to be presented under sub-rule (1) or (2) within three months
of that change having effect,- such information shall be in written form and
signed by the authorised Surveying Officer in the presence of witness who shall
be a natural person, not a related party of the authorized Surveying Officer
and who shall also sign the declaration as witness.
(6) An application for
registration or renewal of registration as authorized Surveying Officer shall
be accompanied by a fee of one thousand rupees which shall be refunded if the
application is not granted.
22. Surveys and reports
of insurance surveyors.--(1)
Pursuant to clause (d) of subsection (3) of section 112 the report of an
insurance surveyor shall be subject to the conditions as laid, down in sub-rule
(2).
(2) Every report given
by an insurance surveyor shall be signed by a natural parson who is, at the
date of the report, registered as an authorised Surveying Officer for the class
of insurance surveyors to which the loss being surveyed related, and shall
include the following, namely:--
(a) A description of the
property or interest which constitutes the subject matter of the survey report,
sufficient to identify the property or interest;
(b) the terms of
reference given to the insurance surveyor by the person engaging him;
(c) any instructions
given to the insurance surveyor by the person engaging him, as to facts to be
assumed or other assumptions to be made by the insurance surveyor;
(d) a description of the
procedures carried out by the insurance surveyor in the conduct of the survey';
(e) the opinion of the
insurance surveyor on the matters contained in the term of reference; and
(f) a declaration that
neither the insurance surveyor, nor any director, employee, associate or
partner of the insurance surveyor, nor any related party of any of those persons,
has any interest directly or indirectly by way of insurance ownership, agency
commission, repairs disposal of salvage, or in any other way whatsoever, other
than as an insurance surveyor in the property or interest which constitutes the
subject matter of the survey report.
(3) Every survey
conducted by, and report given by, an insurance surveyor shall comply with the
relevant professional standards of any professional body of which the insurance
surveyor is a member.
(4) Every survey
conducted, and report given by, an insurance surveyor' shall be conducted and
given with due diligence and skill, and in good faith and the report shall be
finalized as early as possible but within the period of ninety days.
(5) If the Federal
Government has reason to believe that a survey performed has not been preformed
with due diligence or skill, or in good faith, or that it otherwise does not
comply with the conditions of this rule, such that the report does not present
a fair opinion on the matters contained in the terms of reference, the Federal
Government my direct that the insurer arrange for an additional survey of the
subject matter of the survey report to, tie performed by one or more licensed
insurance surveyors who shall be approved by the Federal Government.
(6) An additional survey
under sub-rule (5) shall be performed at the expense of the insurer and a copy,
of the report on the additional survey shall be provided to the Federal
Government.
23. Insurance of
interests in Pakistan.--(1)
For the purposes of subsection (1.) of section 165 of the Ordinance, no person
shall insure outside Pakistan any risk or apart thereof in respect of any
property or interest which is located in Pakistan at the time the insurance is
effected.
(2) The Federal
Government may grant exemption to any person from the requirements of sub-rule
(1)-
(a) where any risk
cannot be insured suitably in Pakistan; or
(b) where there are
reasons of exceptional nature for granting exemption.
(3) The exemption under
sub-rule (2) shall be for such property or interest; and for such period as the
Federal Government may deem fit.
24. Prescribed fee for
copying and for provision of duplicate documents.--(1) This rule shall apply to all provisions in
the Ordinance pursuant to which a person is entitled to charge a prescribed fee
for the provision of a document, or a duplicate document or is entitled to
charge a fee for the grant of permission to make copies.
(2) The fee shall be
determined person entitled to charge the tee but shall not exceed the sum of-
(a) twenty-five rupees
for each page of a document of which one copy is made; or
(b) where a document or
a duplicate document is provided, twenty five rupees for each page of the
document or duplicate document.
(3) Where multiple
copies are made or provided of one document or of one page of a document, the
fee for second and subsequent copies shall not exceed one half of the fee as
set out in sub-rule (2).
(4) For the purposes of
this rule, a page which is printed on both sides shall be counted as two pages.
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