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Revised paid-up capital requirement for life insurance and non-life insurance companies

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KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has raised the minimum paid-up capital requirement  for life insurance and non-life insurance companies to Rs. 700 million and Rs. 500 million respectively by 2017 to strengthening the insurance industry and non-insurance industry.

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According to S.R.O 225 (I)/2015 of SECP, SECP has directed the life insurance companies to increase the paid-up capital to a minimum level of Rs. 500 million by December 2015; Rs. 550 million by the end of June 2016; Rs. 600 million by the end of December 2016; Rs. 650 million by the end of June 2017; and Rs. 700 million by the end of December 2017.

Life

Like that, non-life insurance companies are also required to increase the paid-up capital to a minimum level of Rs. 300 million by December 2015; Rs. 350 million by the end of June 2016; Rs. 400 million by the end of December 2016; Rs. 450 million by the end of June 2017; and Rs. 500 million by the end of December 2017.

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Non

“An insurer who, after the insertion of this rule, desires to register itself under the Ordinance, shall be required to comply with the above mentioned minimum paid-up capital requirement.”

Minimum paid-up capital requirement for 2007-2011 extended to December, 2015.

According to Section 28 (2) of the Insurance Ordinance, 2000:

SECP has revised the paid-up capital requirement after three years. From 2007 to 2011 (extended to December 2015), minimum paid capital requirement for life insurers was Rs. 350m, Rs. 400m, Rs. 450m, Rs. 450m, Rs. 500, Rs. 500m, Rs.500m, Rs. 500m and Rs. 500m for each year.

Similarly from 2007 to 2011 (extended to December 2015), minimum paid capital requirement for non-life insurers was Rs. 120m, Rs. 160m, Rs. 200m, Rs. 250m, Rs. 300m, Rs. 300m, Rs. 300m, Rs. 300m and Rs. 300 for each year.

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