Petitioner seeks to halt malpractices in the financial regulator

SC moved against Commissioner Insurance SECP

Petitioner seeks to halt malpractices in the financial regulator

Islamabad: June 02

A writ petition has been filed in the Supreme Court to get Commissioner Insurance SECP Asif Arif removed from his post due to clear conflict of interest and charges of supporting powerful cartels and squeezing smaller insurance companies.

Kokab Iqbal Advocate has filed a petition in the Supreme Court (SC) praying that the former chairman SECP Muhammad Ali was relieved by the Court but his appointee and agent Commissioner Insurance Asif Arif is still there.  

The petitioner pleaded that Asif Arif was appointed as Commissioner due to influence of the insurance cartel comprising three major insurance companies enjoying 70 per cent market share in the Rs 36 billion market.

An insurance company opened an insurance agency in the name of his wife and amount worth tens of millions was transferred to her account as agency commission which is clear conflict of interest.

After getting benefits, Asif Arif started victimising thirty five smaller insurance companies having 30 per cent market share. This act has brought many companies to their knees and put thousands of jobs at stake.

Moreover the Commissioner Insurance has selected some blue eyed firms to conduct audit depriving other companies.

It also questioned the decision of shifting of Insurance Division to Karachi without justification. “Rules were framed forcing insurance companies to invest in stock market making all other venues unattractive for them,” the petition added.

He submitted that former chairman carried out hundreds of recruitments including eight directors with salary around Rs 300,000 per month putting additional burden of Rs 12 crore on the SECP.

The corruption and controversial steps have badly damaged the image of SECP which has also violated fundamental human rights of millions of people for whom the SC is the last ray of hope.