ISLAMABAD: The National Assembly Standing Committee on Commerce will review the yearly performance of three major state owned insurance companies today (Monday).
“In this regard an important of thee committee is scheduled to be held in Conference Room and as per agenda of the meeting the committee will review yearly performance of the State Life Insurance Corporation Limited (SLIC)” a well placed source at Committee Secretariat told this scribe here on Sunday.
SLIC, committee will also review the performance of National Insurance Company and Pakistan Re-insurance Company Limited (PRICL).
Insurance sector is regulated under the Insurance Ordinance 2000. In last few years, it has transformed into a developing and fast growing market that is generally divided into three components: life insurance, general insurance and health insurance.
The Government established the Department of Insurance in April 1948 as a department of the Ministry of Commerce; the aim of this department is to take care of affairs related to the insurance industry. Out of the 54% that Pakistan‘s service sector contributes to the national GDP, insurance, along with transport, storage, communications and finance occupy 24% of the sector.
SLIC is headed by a Chairman and assisted by the Executive Directors appointed by Federal Government. Up to July 2000 the Corporation was run by Board of Directors constituted under Life Insurance (Nationalization) Order 1972. In July 2000, under Insurance Ordinance 2000, the Federal Government reconstituted the Board of Directors of State Life which runs the affair of this Corporation.
The major function of the State Life Insurance Corporation of Pakistan is to carry out Life Insurance Business; however, it is also involved in the other related business activities such as investment of policyholders� fund in Government securities, Stock market, Real Estate etc. The major achievements of State Life are as under:
National Insurance Company Limited was incorporated in March 2000 as an unquoted public limited company under the Companies Ordinance 1984 through NIC (Reorganization) Ordinance 2000.
Major Objectives of National Insurance Company Limited were to provide insurance cover to the Government/Semi Government organizations at economical cost, to reduce outflow of foreign exchange by reducing dependence on reinsurance abroad, to make significant contributions to public exchequer by payment of taxes & dividends and to make prudent investments in public as well as private sector in order to obtain maximum returns.
Major functions of NICL include insuring public properties, to build sufficient reserves to increase risk retention capacity, to insure properties other than public properties as and when directed by the Federal Government, to advise the Government Departments on issue of risk management to adequately protect their assets at minimum cost as well as to transfer surplus funds after meeting all management expenses, to the government exchequer
Similarly, Pakistan Reinsurance Company Limited (PRCL) is a public sector company under the administrative control of the Ministry of Commerce. The Company is headed by a Chairman with a nine member Board of Directors.
Seven members of this Board are nominated by the Federal Government while others are elected from the business community enjoying excellent business credentials. In addition, the management is supported by a strong team of professionals who handle the business affairs of the company.
The role of PRCL in economic development of Pakistan is significant. PRCL awareness of increasing requirements of insurance and reinsurance of a progressive economy is making great efforts in coming up to national expectations. This progress signifies the consolidation of the position, both at home and abroad, encouraging further expansion.
