Regulatory Alerts2021-01-01
Financial Regulatory Authority Board of Directors Resolution No. (93) of 2021
The Financial Regulatory Authority issued Resolution No. (93) of 2021 to amend its Regulation No. (27) of 2019 regarding the registration conditions for electronic collection companies handling premiums for compulsory motor and fast transport vehicle insurance. The amendment restricts eligible entities to insurance companies, replaces broad terminology with specific references to compulsory motor and transport vehicle premiums, and repeals operational clauses related to vehicle type, capacity, load, and insurance duration. Additionally, it grants existing insurance or brokerage companies a six-month grace period to align their contracts with registered electronic collection firms following the decision's effective date.
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Resolution of the Board of Directors of the Authority No. (93) for the year 2021 dated 6/6/2021 amending Resolution of the Board of Directors of the Authority No. (27) for the year 2019 regarding the conditions and regulations registration of electronic collection companies for premiums of compulsory motor insurance and fast transport vehicles
The Board of Directors of the Financial Regulatory Authority Having reviewed the Insurance Supervision and Control Law in Egypt issued by Law No. (10) of 1981 and its executive regulations; and the Compulsory Insurance Law for Civil Liability arising from accidents of fast transport vehicles within the Arab Republic of Egypt issued by Law No. (72) of 2007; and Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and Resolution of the Board of Directors of the Authority No. (27) of 2019 regarding the conditions and regulations for registering electronic collection companies for premiums of compulsory motor insurance and fast transport vehicles; and the approval of the Authority's Board of Directors in its session held on 6/6/2021;
Resolved: (Article One) The following title is substituted for the title of the aforementioned Resolution of the Board of Directors No. (27) of 2019: "Conditions and Regulations for the Registration of Electronic Collection Companies for Insurance Premiums."
(Article Two) The phrase "Electronic collection of premiums for all types of insurance policies" is replaced with the phrase "Electronic collection of premiums for compulsory motor and fast transport vehicle insurance policies", and the phrase "Insurance company/Insurance brokerage company/Reinsurance company" is replaced with "Insurance company", wherever they appear in the aforementioned Resolution of the Board of Directors No. (27) of 2019.
(Article Three) Sub-item (3/d) of Article Four of the aforementioned Resolution of the Board of Directors No. (27) of 2019 is repealed, and the phrase "according to the type, capacity, and load of the vehicle, and in accordance with the insurance period, ensuring that the general public can obtain the desired service" appearing in item (8) of the same article is also repealed.
Smart Village, Building 136, Giza, Egypt Postal Code: 110 Tel: +202 35345350 Fax: +202 35370036 WWW.FRA.GOV.EG Building Bridges not Walls
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
(Article Four) Insurance companies or insurance brokerage companies that contracted with companies responsible for electronically collecting their insurance premiums prior to the implementation of this decision are granted a grace period of six months from its effective date to regularize their status by contracting with one of the electronic collection companies registered with the Authority, should they wish to do so.
(Article Five) This decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors of the Authority Dr. Mohamed Omran
Smart Village, Building 136, Giza, Egypt Postal Code: 110 Tel: +202 35345350 Fax: +202 35370036 WWW.FRA.GOV.EG Building Bridges not Walls