Insurance Ordinance, 2000
The President of Pakistan had promulgated the Insurance Ordinance, 2000 on 19th August 2000 repealing the Insurance Act 1938. The Ordinance was enacted to regulate the business of the insurance industry by ensuring the protection of the interests of insurance policy holders.The Insurance Ordinance 2000 was promulgated to regularize and protect the business of insurance policy, to provide security for all the people involved into this sector and to repeal & re-enact the laws related to the insurance policies. Insurance as defined by this Ordinance means the business of entering and carrying out policies or contracts, by whatever name called, whereby, in consideration of a premium received, a person promises to make payment to another person contingent upon the happening of an event, specified in the contract, on the happening of which the second-named person suffers loss. Under the Insurance Ordinance, 2000, Base Rate means the effective annual rate implied by the most recent repurchase rate that is published from time to time in a circular issued by the securities department of the State Bank of Pakistan (SBP) for six (06) months Pakistan Treasury Bills, or, if such rate is not available, the most recent repurchase rate for six (06) months Short Term Federal Bonds, or, if neither of such rates is available, the most recent repurchase rate for any other short term paper issued by the Federal Government of an approximately similar tenor, whether in addition to or in substitution for any of the foregoing.
