Please refer to BPRD Circular Letter No.5 dated February
25, 2010 on the above subject wherein the banks/DFIs have
been restricted from retaining a part of insurance premium
received from customers for payment of insurer. The purpose
of issuing the above instructions was not to discourage
Bancassurance products but to transfer the benefit of
discount in insurance premium to customers.
2.
It is clarified that the instructions issued by State
Bank of Pakistan vide the aforesaid Circular Letter are
not applicable on remuneration/commission earned by banks/DFIs
under Bancassurance agreement i.e. between the banks &
Insurance Companies, executed in accordance with SECP
Guidelines in this regard. In these arrangements, a Bank/DFI
acts as a corporate distribution agent and sells Bancassurance
product to its customers and receives commission against
services rendered on behalf of the Insurance Companies.
3.
Other instructions on the subject shall, however, remain
unchanged.
Please
acknowledge receipt.