Karachi: Karachi Chamber of Commerce & Industry (KCCI) and the Federal Insurance Ombudsman (FIO) have agreed to strengthen institutional collaboration to facilitate the business community through faster resolution of insurance-related disputes, enhanced regulatory coordination, and greater awareness of policyholders’ rights.
The understanding was reached during a meeting at the KCCI, where Director General FIO Mobashir Naeem Siddiqui, accompanied by Advisor FIO Fazal Abrejo, held detailed discussions with President KCCI Rehan Hanif, Senior Vice President Muhammad Raza, Vice President Muhammad Arif Lakhani, Chairman of KCCI’s Banking & Insurance Subcommittee Asim Aejaz, and members of the KCCI Executive Committee on issues concerning insurance dispute resolution, regulatory facilitation, and enhanced institutional cooperation.
Addressing the meeting, DG FIO Mobashir Naeem Siddiqui acknowledged the insurance-related concerns raised by the business community, particularly regarding trade insurance and reinsurance challenges arising from prevailing regional security conditions, noting that reinsurance costs often rise significantly during periods of geopolitical instability. He expressed optimism that the situation would normalise as regional conditions improve, and proposed a dedicated consultative session involving KCCI, the FIO Secretariat, and SECP, along with a joint committee to facilitate policy improvements on a priority basis.
Explaining the FIO’s role, Siddiqui said the institution serves as an independent Alternate Dispute Resolution (ADR) forum established under the Insurance Ordinance, 2000, and the Federal Ombudsmen Institutional Reforms Act, 2013, providing free, speedy, and impartial resolution of insurance disputes. He informed participants that any individual, company, or policyholder facing difficulties in obtaining legitimate insurance claims could approach the FIO without engaging legal counsel, with nearly 95 percent of cases disposed of within 60 days and over 90 percent settled amicably through mediation and arbitration.
Highlighting the institution’s performance, he stated that the FIO Secretariat facilitated financial relief exceeding Rs1.5 billion during the previous year by resolving delayed or disputed insurance claims. He also outlined reforms undertaken with SECP, including bilingual insurance policy documents in Urdu and English and the inclusion of FIO contact details on policy documents.
To strengthen engagement, Siddiqui proposed a dedicated KCCI focal person for a virtual liaison desk, along with regular awareness seminars, capacity-building sessions, and technical briefings for KCCI members, and invited KCCI’s Social Media and Banking & Insurance Subcommittees to join the Secretariat’s monthly awareness meetings.
President KCCI Rehan Hanif welcomed the delegation, appreciating the FIO Secretariat’s contribution to protecting policyholders’ rights and strengthening confidence in Pakistan’s insurance sector. He stressed that a reliable, transparent insurance system is indispensable for investment, trade, and sustainable economic growth, calling for greater regulatory clarity, improved coordination among institutions, and timely resolution of compliance issues. He assured the FIO Secretariat of KCCI’s full cooperation in organizing awareness sessions and consultative engagements, expressing confidence that stronger collaboration would improve access to justice for policyholders and support a more transparent, business-friendly economic environment.
