Check How Fast Your Insurer Must Pay: SECP's Draft Claim Deadlines in Pakistan

Short answer: SECP's draft Market Conduct Rules for insurers, released for comment in August 2026, would set claim deadlines. A motor claim would be decided within 5 days of the survey report, an approved claim paid within 7 days, a life claim decided within 20 days and a hospital discharge approved within 3 hours. It is a draft, so it is not yet a rule you can enforce.

A man in Multan waits 40 days for a motor claim after a rear end collision. Every week the workshop says "approval is pending". Nobody tells him how long the insurer is allowed to take, because today the answer is mostly "it depends on the policy". The draft would put numbers on it.

The Securities and Exchange Commission of Pakistan (SECP) regulates insurers. Its own website refused our automated request on 13 October 2026, so we could not read the draft or its press release. Everything below about the draft is reported, and we say so.

The draft sets time limits for decisions

Reports of the draft, dated 20 August 2026, give a list of deadlines. They start counting when the insurer has all the documents it needs, or, for motor and other general claims, from the date of the survey report.

One report describes the 20 days for life claims as working days. Other reports say only "days". Read the final text before you count.

Policy issue times and document requests

The same reports say a new policy proposal would have to be decided within 7 days, and a policy sold by phone or digital channel issued within 3 days. A life policy would be issued within 20 days.

The draft is also reported to stop insurers asking for documents that are not relevant to the claim. That addresses a common complaint: a claim that moves from "pending" to "send one more paper" again and again.

For motor cover, insurers would have to tell you the market value of the vehicle and explain what over insurance and under insurance mean. Under insurance means that your cover is lower than the vehicle's value, so the payout is cut.

Hospital discharge in 3 hours is the headline for patients

For health policies, the draft is reported to require the insurer to approve discharge within 3 hours, and to say that a patient cannot be held in hospital because of a delay by the insurer. That is the part that matters at a hospital bed at 2 in the morning.

Today, if your insurer delays an approval, ask the hospital's insurance desk for the date and time of the request, and write them down. The record helps with a complaint, as explained in the guide to filing a health insurance claim.

Penalties and data the insurers would publish

Non-compliance is reported to attract a fine of up to Rs 1 million, and a further Rs 10,000 for each day a violation continues. Insurers would also have to publish on their websites how many claims they settled, rejected and left pending, including the share pending for more than one year.

That last item would let you compare insurers before you buy. Until it exists, the licence check in the guide to checking an insurer is SECP licensed is the best first step.

Non-life policyholders are also reported to gain the right to cancel without giving a reason. Life policies already have a free look period, explained in the guide to cancelling a life policy within 14 days.

What you can do now, before it becomes a rule

A draft does not bind an insurer. But it shows what SECP thinks is fair, and it is a fair yardstick when you complain. Use the list below.

1. Note the date you sent every document, and keep proof of delivery.
2. Ask the insurer in writing for a decision date.
3. Use the draft's numbers as a yardstick, and say that they are proposed.
4. If the claim is refused or ignored, complain to the insurer, then SECP or the Insurance Ombudsman.

The steps for a refused claim are in the guide on complaining when an insurance claim is refused. For a car claim, see how to file a car insurance claim. For death cover, see claiming life insurance after a death.

Common questions

Are the SECP insurance claim deadlines law yet?

No. Reports describe them as a draft released for 30 days of public comment from 20 August 2026. We could not confirm that it was finalised.

How long must a life insurer take to decide a claim?

The draft proposes 20 days after the insurer receives all required documents. One report says working days.

How fast must an insurer pay after approval?

Within 7 days of approval, according to the reports of the draft.

What is the hospital discharge rule in the draft?

The insurer would have to approve discharge within 3 hours, and a patient could not be held back because of the insurer's delay.

What is the penalty for an insurer that breaks the rules?

Reports say up to Rs 1 million, plus Rs 10,000 for each day the violation continues.

Where do I complain about a delayed claim now?

Start with the insurer in writing. If it fails, go to SECP or the Insurance Ombudsman, as in the guide to refused claims.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked on 13 October 2026, Pakistan time. The SECP website at secp.gov.pk returned an access block to our automated request, so we did not read the draft Market Conduct Rules or SECP's press release. All figures above are reported by the press. We could not verify the final status of the rules, the exact wording of the "days" and the comment deadline.