IAP to develop software for centralization of data bases

IAP to develop software for centralization of important date base,this was stated by the Chairman Insurance Association of Pakistan (IAP), Tahir Ahmed while speaking at he annual dinner of IAP. he said that technical committees are working on various proposals including development of software’s for centralization of important data bases to address the issue of outstanding premium and risk mitigation.

He said that the association initiated translation of insurance policies in Urdu and regional languages of Pakistan which would help common man to understand the insurance and its coverage.

Talking on the issues which are hurting the insurance industry at Annual Dinner of the association, he stated that SRB continues to impose Sales Tax on certain classes of insurance business, which were previously exempt from tax.

They have applied sales tax of 13 % on reinsurance, Life and Health insurance businesses, which is adversely affecting the insurance industry and is also against the public interest as well as in conflict with the federal government policies; IAP is in discussion with SRB for withdrawal of Sales Tax on these classes of insurance business.

Moreover, the FBR has also applied 31 % income tax on the capital gains and dividend income of insurance companies as against reduced rate of tax for other sectors, which is discriminatory in nature and will seriously hamper the profitability of the insurance companies by raising tax liability substantially, in some cases as high as 80% which is unprecedented, unfair and over burdening on the insurance industry. The IAP is actively pursuing this matter and have requested for a meeting with M. lshaq Dar, Finance Minister of Pakistan to resolve the issue.

Chairman IAP highlighted the Association’s activities and important issues of the insurance industry, he stated that the IAP has six (6) life and thirty (30) non-life insurance companies, and one reinsurance company as its members, which represent almost 100 % of insurance industry in Pakistan. Last year the life insurance companies made a robust growth of 25 % and generated premium of Rs. 152 billion and the non-life insurance companies grew sedately at 8 % and generated a premium of Rs. 62 billion. Currently total penetration of insurance in GDP is 0.9% of that 0.3% is of non-life and 0.6% is of life insurance companies.

The Chairman added that the industry celebrated Insurance Day this year in Pakistan and various activities were organized by the IAP to spread awareness of insurance throughout the country especially to youth in colleges and universities.—PR