ISLAMABAD: President Dr Arif Alvi has directed private insurance company to refund Rs 2 million along with profit for six years to policyholder who was wrongly issued multiple insurance policies with huge annual premiums instead of just one policy.

President gave these directions while rejecting representation filed by Pak Qatar Family Takaful Ltd. (company) against decision of Federal Insurance Ombudsman (FIO) directing company to pay Rs 2 million to Waheed Ahmed (complainant).

He added that as Takaful Plan was mis-sold to customer in 2015 and company must have earned reasonable profit in this period by investing it in business, therefore, it should refund original amount with profit to him to meet norms of justice.

However, he was issued four small policies for 11 years with collective annual premium of Rs 500,000. Since complainant was unable to pay huge amount of premium every year, he requested company to cancel his policy and refund his deposited amount of Rs 2 million, but to no avail.

President highlighted that this doctrine rested upon principle of economic and distributive justice enshrined in Pakistan's Constitution. President Alvi also upheld FIO's observation.

Published in The Daily National Courier, August, 26 2023

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