Regulatory Alerts2021-01-01
Decision of the Chairman of the Authority No. (2287) of 2021 Regarding Certain Clarifications Accompanying the Personal Accident Insurance Policy Form for Egyptians Working Abroad Approved by Chairman's Decision No. 1661 of 2021
The Financial Regulatory Authority issued Decision No. 2287 of 2021 to attach supplementary clarifications to the Personal Accident Insurance Policy Form for Egyptians Working Abroad, which are integral to Decision No. 1661 of 2021. The decision mandates a coverage limit of 100,000 Egyptian Pounds for both accidental and natural death, covering actual corpse preparation, shipping, and transportation costs while distributing the remainder to legal heirs. It establishes a seven-day regulatory notification period with flexibility for acceptable excuses, confirms the Group's subrogation rights up to paid compensation amounts, and preserves the heirs' right to recover any excess from liable third parties.
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Financial Regulatory Authority
Chairman of the Authority
Decision No. (2287) of 2021 Dated 29/12/2021 Regarding Certain Clarifications Accompanying the Personal Accident Insurance Policy Form for Egyptians Working Abroad, Approved by Chairman's Decision No. 1661 of 2021
The Chairman of the Financial Regulatory Authority, Having reviewed Law No. 131 of 1948 promulgating the Civil Code, Law No. 10 of 1981 concerning supervision and control of insurance in Egypt, its executive regulations, and amendments thereto, Law No. 10 of 2009 concerning the regulation of supervision over non-banking financial markets and instruments, Decision of the President of the Republic No. 192 of 2009 promulgating the Basic Law for the Financial Regulatory Authority, Chairman's Decision No. 698 of 2021 concerning the establishment of the Egyptian Group for Outbound Travel Insurance, Chairman's Decision No. 1661 of 2021, dated 10/10/2021, concerning the implementation of the Personal Accident Insurance Policy Form for Egyptians Working Abroad, and the letter from the Executive Director of the Egyptian Group for Outbound Travel Insurance received by the Authority on 24/12/2021 regarding certain clarifications related to the Personal Accident Insurance Policy Form for Egyptians Working Abroad.
Has decided: (Article One) The clarifications accompanying this decision are attached to the Personal Accident Insurance Policy Form for Egyptians Working Abroad, which is annexed to Decision No. 1661 of 2021 mentioned above, and shall be considered an integral and explanatory part of its provisions.
(Article Two) This decision and its accompanying clarifications shall be published in the Egyptian Gazette, as well as on the websites of the Authority and the Group.
Chairman of the Board of Directors Financial Regulatory Authority Dr. Mohamed Omran
Smart Village, Building 136, Giza, Egypt Postal Code: 110 Tel: +202-35340530 Fax: +202-35370036 WWW.FRA.GOV.EG
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Financial Regulatory Authority
Chairman of the Authority
Supplementary Clarifications to the Personal Accident Insurance Policy Form for Egyptians Working Abroad
First: Cases covered by the policy, the amounts paid by the Group in each case, and payment details: Covered cases under the policy: A. In case of death by accident: The Group is committed to paying an amount of 100,000 Egyptian Pounds ("one hundred thousand Egyptian Pounds only") according to the following details: The Group pays the actual cost of preparation, shipping, and transportation of the corpse to the home country according to documents submitted to the Group, after which the remaining amount is distributed among the legal heirs according to the inheritance notice submitted to the Group.
B. In case of natural death: The Group pays only the actual cost of preparation, shipping, and transportation of the corpse, not exceeding one hundred thousand Egyptian Pounds.
Second: Interpretation of transportation of the corpse: "Transportation of the corpse" refers to preparation, shipping, and transportation of the corpse.
Third: The notification period stipulated in paragraph (1) of Clause Seven of the policy (seven days from the date of the accident): The notification period stipulated in paragraph (1) of Clause Seven of the policy is considered a regulatory deadline intended to prevent delay in notifying the accident promptly, enabling the acquisition of supporting documents for the accident and recording compensation values at their actual dates. In addition, the phrase "unless it is evident from the circumstances that the delay was due to an acceptable excuse" provides sufficient flexibility for the insured and the Group.
Fourth: Clarification on whether claiming under the policy prevents the insured's heirs from seeking recourse against the party liable for the accident: According to Clause Nine of the policy, the Group has the right to seek recourse against a third party liable for the accident up to the amount of compensation paid by it as a result of a covered accident under this policy. The insured's heirs shall have the right to seek recourse for any amount exceeding that.
Smart Village, Building 136, Giza, Egypt Postal Code: 110 Tel: +202-35340530 Fax: +202-35370036 WWW.FRA.GOV.EG