Chairman SECP under fire for shielding officers amid collusion claims.
ISLAMABAD (December 02-2025)
An internal inquiry has been opened against Securities and Exchange Commission of Pakistan (SECP) Executive Director Asif Jalal Bhatti after allegations surfaced that he and associated officers pressured insurers to approve unjustified and potentially fake claims, according to officials familiar with the matter.
A leading company that refused a disputed claim filed by Sialkot-based Cobija Industries later faced regulatory pressure, reputational harm, and heavy commercial losses running into billions. Another insurer, a takaful company, cleared the same claim of about Rs230 million under pressure, raising concerns among its directors and prompting a review of whether the payout was legitimate.
Insiders said the case reflects a wider pattern in the insurance sector where fraudulent claims have surged, forcing companies to start internal audits and refer cases to investigative agencies. Organised fraud supported by forged documents and exaggerated accident reports has cost insurers billions, pushing up premiums for genuine policyholders.
Many companies remain vulnerable due to manual verification systems and limited digital screening tools, while some face pressure from regulatory officials allegedly working in collusion with claimants. Industry sources urged the authorities to speed up work on a centralised claims verification system and tighten penalties for internal collusion.
Sources cited a recent high-profile case involving Sialkot-based factory owner Salman Tariq, who allegedly attempted to secure more than Rs700 million through what one insurer described as a staged accident. One company paid about Rs230 million, while another rejected the claim, citing weak evidence and inconsistencies. The rejecting firm sought multi-agency investigations and approached the court.
Within SECP, officials said the inquiry against Bhatti is encountering resistance. They claimed Chairman Atif Saeed, who is already facing scrutiny over allegations of mismanaging public funds worth billions of rupees, is attempting to play down the matter. The investigation remains at an early stage, and no findings have been released.
The growing fraud burden threatens public confidence and could slow Pakistan’s already low insurance penetration. For households, rising premiums and stricter claim checks add financial stress. For businesses, prolonged disputes and delayed settlements undermine risk planning and investment decisions. What comes next hinges on whether regulators enforce stronger oversight and publish inquiry outcomes to rebuild trust in the sector. Calls to concerned officials went unanswered till filing of this report.
