ºÚÁÏÊÓƵ

The Terms of Business Agreement (Insurance) serves as a fundamental legal framework for establishing and managing business relationships in Pakistan's insurance sector. This document is essential when insurance companies enter into formal arrangements with brokers, agents, or other intermediaries, ensuring compliance with the Insurance Ordinance 2000 and SECP regulations. It outlines crucial aspects such as service scope, regulatory obligations, commission structures, and operational procedures. The agreement is particularly important in the Pakistani context where the insurance sector is rapidly evolving and requires clear documentation of business relationships to meet regulatory requirements and protect all parties' interests. It incorporates specific provisions for both conventional insurance and Takaful operations, reflecting Pakistan's dual insurance system.

1. Parties: Identification of the contracting parties - typically the insurance company and the business partner (broker/agent/intermediary)

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement, including regulatory terminology from Pakistani insurance laws

4. Scope of Services: Detailed description of services to be provided by each party

5. Regulatory Compliance: Obligations to comply with Pakistani insurance laws, SECP regulations, and other relevant legislation

6. Authorization and Licensing: Confirmation of necessary authorizations and licenses required under Pakistani law

7. Remuneration: Commission structures, fees, and payment terms

8. Client Money Handling: Procedures for handling client premiums and claims payments

9. Representations and Warranties: Standard warranties and representations from both parties

10. Professional Indemnity: Requirements for professional indemnity insurance coverage

11. Confidentiality: Protection of confidential information and trade secrets

12. Data Protection: Obligations regarding data protection and privacy

13. Term and Termination: Duration of agreement and termination provisions

14. Dispute Resolution: Procedures for resolving disputes under Pakistani law

15. Governing Law: Specification of Pakistani law as governing law and jurisdiction