Islamabad, President Dr. Arif Alvi has instructed the State Life Insurance Corporation of Pakistan to disburse a death insurance claim and associated profits to the beneficiaries of a deceased policyholder, addressing a nearly three-year delay in payment. The President’s directive also included the formation of a medical panel to develop policies for pre-insurance health screenings.

According to Press Information Department, the President’s decision comes after a hearing where he overruled a challenge by State Life against an order from the Wafaqi Mohtasib (Ombudsman). The complaint was lodged by Saad Taheer, whose father had taken a life insurance policy in 2013 and passed away in 2020. State Life had originally repudiated the claim, citing nondisclosure of a pre-existing hepatitis-C condition by the deceased.

During the hearing, President Alvi pointed out inconsistencies in State Life’s argument, noting the medical reports provided were from the post-insurance period and thus irrelevant. Furthermore, the President highlighted a field officer’s report that verified the insured’s health at the policy’s inception. He referenced Section 80 of the Insurance Ordinance 2000, which restricts insurers from questioning policies after two years on the basis of inaccurate initial medical disclosures.

As a result, the President dismissed State Life’s representation and ordered the corporation to process the claim and profit within 30 days to the nominees. Additionally, he called for the establishment of a panel of doctors to guide State Life on conducting pre-insurance medical tests, which would help identify common diseases in Pakistan and determine necessary screenings for future policyholders. The President also suggested that State Life could adjust premiums based on a risk assessment for common but mild conditions such as diabetes, hypertension, and hepatitis, to ensure coverage for those with prevalent diseases.