The business of insurance been regulated under the Insurance .
In order to implement and administer the provisions of the aforesaid Act the Government
established the Department of Insurance, as a department of the Ministry
of Commerce Until eventual implementation of the
new law of insurance, namely, Insurance Ordinance, only recently been
enacted, the insurance industry has continued to be regulated by the Controller of
Insurance. While formulating the for reform of the Insurance Industry, the
Government considered two options: either set up a body exclusively for regulation of the
Insurance Industry or vest the Commission with the necessary regulatory authority. As a consequence, the duty of administering the insurance law
was passed on to this Commission . This policy decision of the
Government was ratified by the Insurance Ordinance, has replaced the
Insurance Act, 1938.In view of the above decision and requirement of law, an Insurance
Division has been incorporated in the Corporate Plan of the Commission. As this
Division was not in existence during the period under review, its performance would be
reflected in the next report of the Commission. However, its main functions would be as
under:
• registration and regulation of insurance companies;
• examination of several matters including annual accounts, actuarial reports,
solvency margins to be maintained by insurance companies, re-insurance
arrangements, level of management expenses,
• Inspection of the record of the companies and insurance intermediaries;
• Approvals and permissions under the powers conferred under the Insurance Law
• Appointment of administrators to replace board of directors and to make
applications to the Courts for winding up
