KARACHI: The Karachi Chamber of Commerce & Industry (KCCI) and the Federal Insurance Ombudsman (FIO) have agreed to strengthen institutional collaboration to facilitate the business community through faster resolution of insurance-related disputes, enhanced regulatory coordination and greater awareness of policyholders’ rights.The understanding was reached during a meeting at the Karachi Chamber of Commerce & Industry (KCCI), where Director General, Federal Insurance Ombudsman (FIO), Mobashir Naeem Siddiqui, accompanied by Advisor FIO, Fazal Abrejo, held detailed discussions with President KCCI Rehan Hanif, Senior Vice President Muhammad Raza, Vice President Muhammad Arif Lakhani, Chairman of KCCI’s Banking & Insurance Subcommittee Asim Aejaz, and members of the KCCI Executive Committee on issues concerning insurance dispute resolution, regulatory facilitation and enhanced institutional cooperation.Addressing the meeting, Director General FIO Mobashir Naeem Siddiqui acknowledged the insurance-related concerns raised by the business community, particularly regarding trade insurance and reinsurance challenges arising from prevailing regional security conditions.
He observed that reinsurance costs often increase significantly during periods of geopolitical instability, adversely affecting insurance premiums and coverage for businesses engaged in international trade. However, he expressed optimism that the situation would normalize as regional conditions improve.To address these concerns, he proposed holding a dedicated consultative session involving KCCI, the Federal Insurance Ombudsman Secretariat and the Securities and Exchange Commission of Pakistan (SECP) to examine the issues in detail and develop practical solutions. He further suggested constituting a joint committee comprising representatives of KCCI, SECP and the FIO Secretariat to facilitate policy improvements and resolve industry-specific challenges on a priority basis.Explaining the role of the Federal Insurance Ombudsman, Mobashir Siddiqui said the institution serves as an independent Alternate Dispute Resolution (ADR) forum established under the Insurance Ordinance, 2000 and the Federal Ombudsmen Institutional Reforms Act, 2013, providing free, speedy and impartial resolution of insurance disputes.He informed participants that any individual, company or policyholder facing difficulties in obtaining legitimate insurance claims could approach the FIO without engaging legal counsel. Complaints are resolved free of cost, with nearly 95 percent of cases being disposed of within 60 days, while over 90 percent are settled amicably through mediation and arbitration.
Highlighting the institution’s performance, he stated that the FIO Secretariat facilitated financial relief exceeding Rs1.5 billion during the previous year by resolving delayed or disputed insurance claims.Mobashir Siddiqui also outlined several reforms undertaken in collaboration with SECP to improve consumer protection, including the introduction of bilingual insurance policy documents in Urdu and English and the inclusion of the Federal Insurance Ombudsman’s contact details on policy documents to enable policyholders to seek timely redress.To strengthen engagement with the business community, he proposed the nomination of a dedicated KCCI focal person to establish a virtual liaison desk for expeditious handling of members’ insurance-related grievances.
He also offered to organize regular awareness seminars, capacity-building sessions and technical briefings for KCCI members.Furthermore, he announced that the FIO Secretariat would regularly share awareness material with KCCI for dissemination through its digital platforms and invited representatives of KCCI’s Social Media Subcommittee and Banking & Insurance Subcommittee to participate in the Secretariat’s monthly awareness meetings, enabling continuous information exchange and stronger institutional coordination.President KCCI Rehan Hanif, while warmly welcoming the visiting delegation, appreciated FIO Secretariat’s significant contribution towards protecting the rights of policyholders and strengthening confidence in Pakistan’s insurance sector.He stated that a reliable, transparent and efficient insurance system is indispensable for promoting investment, facilitating trade, managing commercial risks and ensuring sustainable economic growth. Equally important, he added, is the existence of an independent institution capable of resolving insurance disputes fairly, impartially and expeditiously.
Rehan Hanif noted that Karachi, being Pakistan’s commercial and financial hub, contributes the largest share to the national economy through trade, industry, exports and tax revenues. He emphasized that while the business community remains fully committed to regulatory compliance, the regulatory framework must also remain business-friendly, predictable and facilitative to reduce the cost and complexity of doing business.Highlighting the concerns of KCCI members, he called for greater clarity in regulatory requirements, improved coordination among regulatory institutions, timely resolution of compliance-related issues and enhanced awareness regarding evolving legal and regulatory obligations affecting businesses.
President KCCI assured the FIO Secretariat of KCCI’s full cooperation in organizing awareness sessions, training programs and consultative engagements to educate businesses on insurance-related matters while enabling regulators to better understand the operational realities faced by the private sector.He expressed confidence that stronger collaboration between KCCI and FIO Secretariat would significantly improve access to justice for policyholders, strengthen confidence in the insurance industry and contribute towards a more transparent, resilient and business-friendly economic environment in Pakistan.
