Pakistan Extends Its Life Insurance Policies

It has been revealed that Pakistan will now offer life insurance cover to international buyers, who are intending to sign import contracts with local exporters, according to Salman Ghani, the Secretary Commerce at the 60th Advisory Council meeting this month.

The meeting was held to seek proposals from trade bodies to help finalise deal policies during 2009-2012. Ghani said that this measurement is an attempt to attract international buyers to the country and improve exports.

The meeting proved to be a success, with top office holders, representing the Chamber of Commerce and Industry and Exporters Associations from all parts of Pakistan.

However, no provincial government representative was present at the meeting to propose steps on the potential for province focused exports.

Ghani highlighted the importance of encouraging international buyers, so that local industries are able to fetch export orders.

He said that in the course of policy formulation, the ministry is examining ways to provide life insurance cover to international buyers, who are planning to visit Pakistan to sign import and export contracts with local export orientated sectors.

He noted that an arrangement should be put into place, so that local insurance companies could underwrite the insurance cover for the firms.

Export focused industries would be allowed to approach ministries bearing the cost of insurance cover to international buyers.

While focusing on the export potential for the pharmaceutical industry, the Secretary stated, that this sector has the capability of enhancing exports and trade policies, and thus could include some measures for promoting investment.

Increased Insurance Sales

The step to branch out in the life insurance sector is reflective of the fact that life cover polivies in Pakistan has increased.

The business of life cover policies has shown at least three times growth in the last five years. In 2008, insurance firms collected more than Rs 12 billion (£182.4m) in premium, while in 2004, the collection stood less than Rs 4 billion (£60.8m).

Habib Ahmed, an insurer stated that the main reason why insurance sales have risen is because Pakistan has witnessed hints of economic prosperity. "Having money in your pocket is necessary for getting life insurance and in the last five years, people got prosperous especially the middle class flourished," he said adding that one should have at least Rs 15,000 (£228) for getting a life insurance."

The Cricket Team

With more attempts to increase tourism, trade and to keep insurance sales up, the Board of Cricket in India (BCCI) has increased its life insurance cover for its men and women's cricketers when they are away on overseas trips, following the attack on the Sri Lankan cricket team bus in Pakistan, earlier this year in March.

The attack occurred when heavily armed men ambushed the team bus heading into the stadium in Lahore during the second test. A team coach and six of the Sri Lankan players were wounded.

Each player will now be insured by the Indian board for one million rupees (£15,000) on every overseas trip, apart from the yearly cover for one million rupees for this year.