Insurance Tenders in Pakistan

What insurance tenders cover

The buyer is rarely choosing on premium alone. Health insurance, for example, is judged on the size of the hospital panel, the speed of claim settlement, the quality of the third-party administrator and the exclusions, as well as on the rate per employee. Property and marine covers depend on sums insured, deductibles and claims history, which the bidding document normally provides.

Timing follows the policy calendar. Many institutions renew cover from July or at the start of their own financial year, so notices cluster before those dates, and a buyer that is unhappy with claims service will often retender a year before the contract ends. Newer buyers, such as hospitals and private universities, sometimes tender for the first time and are open to fresh insurers who can demonstrate service quality instead of only a low rate.

Because insurance is a regulated activity, the bidders are companies and not general traders. Brokers sometimes participate where the buyer allows, but eligibility rules differ, so read whether the notice is open to insurers only, to brokers acting for insurers, or to both.

• Group health and hospitalisation cover for employees and dependants
• Group life and personal accident insurance
• Motor fleet insurance for official vehicles
• Fire, earthquake and allied perils for buildings, stores and plant
• Marine cargo and project cargo insurance
• Contractor's all-risk and erection all-risk policies for projects
• Cash in safe, cash in transit and fidelity guarantee
• Takaful (Shariah-compliant) cover where the buyer requires it

Who issues them

Buyers include federal and provincial departments, state-owned banks and enterprises, power and oil companies, universities, development authorities, autonomous bodies and large private groups. Public sector entities are often required to place business with listed or well-rated insurers, and some are restricted by their own boards to the State Life or National Insurance Company or to panels approved by the regulator.

Rules and procedure

The insurance sector is regulated by the Securities and Exchange Commission of Pakistan, and insurers must hold a valid registration and a minimum financial strength rating from a recognised agency. Federal bodies follow the Public Procurement Rules, 2004; provinces apply their own rules. Notices commonly specify an insurer rating, years in business, claim settlement record and a minimum panel of hospitals or workshops. Evaluation is frequently two-envelope, with the technical score setting who qualifies before the premium is compared. Government departments also follow rules on which insurers may be used, so check whether the work is restricted. Premium rates for health cover are quoted per employee or per family, with the family size, age bands and room entitlement stated. Takaful operators may bid where the buyer allows Shariah-compliant cover. Contract awards generally run for one year with a renewal option subject to claims ratio, and the buyer may keep the right to cancel if service falls short. Claims-handling arrangements can be a deciding factor, so offer a named relationship manager and clear escalation steps. Taxes on premium, such as the provincial sales tax on insurance services and stamp duty, should be stated clearly in the offer.

How to bid

1. Confirm that your company is licensed by SECP and meets the rating and capital requirements in the notice.
2. Study the schedule of risks: number of lives, sums insured, locations, vehicles and claims history.
3. Prepare the technical offer covering coverage terms, exclusions, panel list and claims process, then the premium quotation.
4. Submit the bid with the bid security or an undertaking as asked, before the deadline.
5. After award, issue the policy or cover note, set up the claims desk and report claims experience to the buyer.

Documents you will usually need

• SECP registration and licence
• Financial strength rating certificate
• NTN and sales tax registration (insurance is a taxable service in several provinces)
• Claims settlement record and annual reports
• Hospital panel or workshop network list
• Reinsurance arrangements for large risks
• Past experience with comparable clients

Tips from the notices we track

• Quote against the exact schedule and state any assumption about sub-limits or waiting periods, since vague offers are scored down. Price the rate on the claims history provided and say what happens if the number of lives changes during the year.
• Highlight claims turnaround and the digital tools you provide for member claims, as health insurance is won on service.
• For large property or project risks, show the reinsurance support behind your offer.