The Institution of Federal Insurance Ombudsman was established in the year 2006. In the years that followed it has gained a higher pitch of credibility which is reflective in the ever growing size of the complaints.

There has been a noticeable upward of lodgment of complaints from the relief seekers against maladministration of the Insurance Companies.

This trend is particularly seen as a logical outcome of the aggressive public information campaign undertaken during the recent past which led to a positive impact about the usefulness of the FIO Forum as a dependable relief-provider and problem-resolver. The Secretariat of Federal Insurance Ombudsman continued its unexhausted efforts to protect the policyholders' interest and provided relief to the Policyholders by making extraordinary efforts through electronic instruments and conducted hearings amongst the individual policyholder and representative of the Insurance Company through video conferencing. Besides, we continued our hectic efforts to redress the grievances of the policyholders by adopting all means due to which the graph of disposal as well as filling of complaints was not increased manifold but also disposed a large number of complaints. The focal point of achievements of the year 2021 is a mere reflection of our motto "developing a modern & sound oversight mechanism to take cognizance of maladministration prevalent in insurance industry of Pakistan".

We are striving towards a monetary relief which fuels the realization of hope of our aggrieved clients, the policyholders, who find themselves in a dilemma against the maladministration of their respective Insurer Companies. To this end we are continuously endeavoring to deliver the task, assigned by the state under the special law, with diligence, personal flare and professional commitment. This fact is abundantly corroborated in terms of the overall increase in the number in volume of complaints registered in the FIO Secretariat and the quantum of monetary relief awarded to the aggrieved policyholders. Many policyholders who got relief from the FIO have expressed their acknowledgement and appreciation of this state institution through formal letters and it further lends credence, strength and credibility to this institution; and it provides a solid foundation for its further expansion and strengthening. The Bancassurance business increases in manifold in recent past, a channel desired for sale of insurance policies through bank desk. Simultaneously the complaints from the victims of Bancassurance are going at an alarming pace as the number of complaints during 2021 increased many times as compared to the preceding years. The positive side of the Bancassurance is its impressive growth of the last few years due to aggressive expansion of distribution channels, which now shares of a significant portion of the business in most of the insurance sector It has enhanced the industry in Pakistan in terms of increased market penetration by being able to access millions of banks customers.

In the year 2021 there is tremendous increase in complaints of life insurance and in this regard most of the complaints of Bancassurance have been received. To resolve the grievances in Bancassurance channel, the present Mohtasib has given a new vision and a new mechanism to settle the insurance matters with the Insured and Insurer availing the provision of Insurance Ordinance for an amicable settlement through mediation which remained beneficial for the Complainants and also for the insurance industry for betterment and growth of Insurance Industry. The Basic Principle of law is that it should govern. It primarily refers to the influence and authority of law within society, particularly as a constraint upon behavior, especially that of all its stakeholders. The quintessence of any law making should be the inbuilt mechanism of accountability that leads towards the “Rule of Law”. Keeping the same in view, Insurance Ordinance, 2000 has a separate chapter to establishment and existence of in built ability to judiciously regulate the insurance industry and ensure the protection of stakeholders. This institution is striving to provide justice to the affected / aggrieved Policyholders at their doorsteps having Karachi Secretariat and with the assistance of six Regional Offices at Islamabad, Lahore, Peshawar, Multan, Quetta & Sukkur by affording opportunity of hearing through video-link. The public awareness campaign of the FIO is to guide and advise the aggrieved Policyholders which showed positive results as tremendous increase in lodging complaints with this Forum has been witnessed. It is pertinently mentioned that during the last year, the ratio of complaints was not only increased by 25% but the percentage of redressal of grievances has also been increased by 50%. In the year 2021, this Institution has given monetary relief of approximately Rs. 2.00 billion to the aggrieved Policyholders, which is a remarkable achievement and shows the performance of FIO touching new milestones.

The use of technology made the institution of FIO more effective, which not only improves its performance but also helps the insurance industry in the light of visionary directions of Insurance Ombudsman.

Published in The Daily National Courier, August, 16 2022

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.