Insurance, Reinsurance & Takaful
At LMA, we have a broad experience in matters pertaining to the insurance industry, ranging from advising clients on the legal and regulatory framework, the interpretation and applicability of the Insurance Ordinance, 2000 and the rules and regulations framed thereunderto, and, in addition, we also provide advice on insurance policies. The counsels at the firm regularly provide advice to both local and international companies on insurance and reinsurance policies, including drafting of documentation for bancassurance products for banks. We have rendered extensive advice to an international insurance business group for establishing a conventional insurance company and a takaful company in Pakistan. We also represent companies in the Superior Courts of Pakistan and before the Securities and Exchange Commission of Pakistan in relation to insurance claims and regulatory issues.
We have also advised banks in relation to insurance coverage relating to ATM withdrawal, credit, life, property, automobiles and mortgages.
As of late, we have also advised insurance companies, both locally as well as internationally on online offering of products for the Pakistan space.
- Acted for Bank AL Habib in developing standardized documents in respect of the insurance of assets pursuant to consumer and commercial financing provided by the bank to its customers under conventional banking as well as Shariah-approved principles. We were required to review the insurance policies of the various insurers that the bank would execute contracts with and thereafter to draft, review and finalize the documents, including the insurance agreement and the Takaful agreement between the bank and the insurers reflecting the terms and conditions upon which the insurers would be appointed and the services to be provided. Furthermore, we were required to draft letters of indemnity to be obtained from the insurer to, inter alia, record the extent of the liability of the insurer, specific provisions to be required in the insurance policies, the undertaking that no act or omission shall be done contrary to the provisions/requirements of the insurance policies and indemnity against loss, damage caused to the acts/omissions of the insurer. In addition to the above, we were required to prepare standard drafts to facilitate the bank with its relationships with other service providers including clearing agents, forwarding agents and other agents, i.e. the muccadam, employed by the bank to ensure safety and transportation of the goods pledged with the bank. In that regard, we were required to draft, review and finalize various standardized agreements and terms and conditions that recorded the detailed criteria of services required by the bank, the professional description of such agents and the standard of service expected. We were also required to issue various undertakings from the agents, such as the clearing agent or the mucaddum to ensure that the interests of the bank were protected until the goods were safely stored with the bank and thereafter. We, furthermore, drafted customer indemnities to protect the bank in the event that the agents recommended by the customer were employed by the Bank.
- We advised Careem Pakistan on insurance policies and laws and its role as an insurance broker or an insurance agent.
- LMA has advised EFU General Insurance Limited regarding possible claims amounting up to Rs. 260 million under its directors and officers liability policy issued to a local engineering company under an arrangement for global insurance cover entered into between its parent company and Allianz in Germany.