The Official Gazette - No. 27 Rec. (B) dated 6 July 2019

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Prime Minister's Decision No. 1583 of 2019

Establishing the Government Insurance Fund for the Care of Egyptian School Students

Prime Minister

After reviewing the Constitution;
And the Civil Code;
And the Central Organization for Organization and Administration Law issued by Law No. 118 of 1964;
And the Law on Supervision and Control of Insurance in Egypt issued by Law No. 10 of 1981 and its Executive Regulation;
And the Education Law issued by Law No. 139 of 1981;
And the Central Audit Organization Law issued by Law No. 144 of 1988;
And Law No. 10 of 2009 on regulating supervision over non-banking financial markets and instruments;
And the Civil Service Law issued by Law No. 81 of 2016;
And Minister of Education Decision No. 140 of 1961 regarding the insurance system for students and insurance for architectural teachers working outside the Arab Republic of Egypt;
And Minister of Education Decision No. 224 of 2015 regarding the insurance system for students against accidents;
And Minister of Education and Technical Education Decision No. 356 of 2018 regarding the determination of fees, fines, subscriptions, and compensation for additional services collected from male and female students in schools at all educational stages (general and technical);
After obtaining the opinion of the Financial Regulatory Authority;
And based on what the State Council deemed appropriate;

Decides:

(Article 1)

In application of the provisions of this Decision, the following words and expressions shall have the meanings indicated alongside each of them :

• The Fund: The Government Insurance Fund for the Care of Egyptian School Students.
• The Authority: The Financial Regulatory Authority.
• The Competent Minister: The Minister competent for applying the provisions of the aforementioned Law No. 10 of 2009.
• Students: Students of schools affiliated with the Ministry of Education and Technical Education, and schools under its supervision, regardless of their type, at all educational stages, including kindergartens.

(Article 2)

A government insurance fund shall be established within the Ministry of Education and Technical Education, possessing independent legal personality, subordinate to the Minister of Education and Technical Education, with its headquarters in Cairo, and it may establish branches in other governorates.

(Article 3)

The Fund aims to provide an insurance protection umbrella for students to cover risks of natural or accident-related death, as well as alternative injuries and their resulting total or partial disability, and to provide social allowances.

The Fund shall pursue its objectives in accordance with the provisions of this Decision, and under the conditions and reasons specified by a decision of the Competent Minister based on a technical study prepared by the Fund in accordance with the controls determined by the Authority's Board of Directors.

Insurance premiums shall be collected alongside tuition fees, with these premiums fully remitted to the Fund. Exemptions from paying these premiums shall apply to cases exempt from tuition fees, as well as cases the Fund's Board of Directors deems appropriate to exempt, in accordance with controls issued by a decision of the Minister of Education and Technical Education, within a percentage of students determined by the Competent Minister. Exempted cases shall enjoy the insurance benefits approved in accordance with the provisions of this Decision.

(Article 4)

The Fund shall be registered in the designated register at the Authority, and shall be subject to the provisions of government insurance funds stipulated by the aforementioned Law on Supervision and Control of Insurance in Egypt and its Executive Regulation. It shall not aim for profit, and its funds shall be allocated and its surpluses carried forward to cover its expenses and liabilities to the insured.

(Article 5)

The Fund shall replace the General Administration for Student Accident Insurance established by the aforementioned Minister of Education Decision No. 140 of 1961, assuming all its rights and obligations, within a maximum period of six months from the date of implementation of this Decision. The balance of student insurance account No. 2/49450/9 at the Central Bank of Egypt shall be transferred to the Fund.

(Article 6)

The Fund shall be managed by a Board of Directors composed of a Chairman and six members, two of whom shall be experts in the insurance field under the Authority. The formation of the Board of Directors shall be issued by a decision of the Minister of Education and Technical Education, and the decision shall specify the value of attendance allowances for board meetings.

The term of board membership shall be three years, renewable once. The Board of Directors shall convene upon summons by its Chairman at least once every three months, or whenever necessary. A meeting shall not be valid unless at least five members are present, and its decisions shall be issued by a majority of the votes of those present. In case of a tie, the Chairman's vote shall prevail. In case of the Chairman's inability to attend, he may delegate one of the members to chair the meeting.

The Minister of Education and Technical Education may invite the Board of Directors to review matters he specifies.

(Article 7)

The Board of Directors of the Fund is the supreme governing authority over its affairs and the management of its business, and for this purpose, it may take the decisions it deems necessary to exercise its competencies, particularly as follows :

1. Establishing the organizational structure of the Fund, its financial and administrative regulations, and the regulations governing its employees.

(Article 8)

2. Approving an internal control system aimed at:

(a) Verifying the compliance of the Fund and its employees with the application of prevailing laws, regulations, and decisions.

(b) Protecting the Fund's assets and resources from loss due to misuse or non-compliance with prevailing laws, regulations, and decisions.

(c) Establishing accountability and accounting rules within the Fund.

3. Determining the investment avenues for the Fund's funds, taking into account the provisions stipulated by the aforementioned Law on Supervision and Control of Insurance in Egypt and its Executive Regulation, as well as the controls and decisions issued by the Authority's Board of Directors on this matter.

4. Approving the Fund's financial position, estimated budget, and final accounts.

5. Approving the (quarterly - annual) reports submitted to it regarding the Fund's activities.

6. Depositing opinions on all draft regulations and decisions related to the Fund's competencies.

7. Establishing a system for contributing to the treatment expenses of patients, chronic cases, and prosthetic devices for students, or donating to entities or institutions providing free medical services to students, in the event of a surplus in the Fund, all subject to the approval of the Minister of Education and Technical Education.

8. Reviewing any matters referred to it by the Minister of Education and Technical Education, the Competent Minister, or the Authority that fall within the Fund's competencies. The Authority must be notified of the Fund's Board of Directors' decisions within two weeks from their issuance date.

(Article 9)

The Chairman of the Fund's Board of Directors represents the Fund in court and acts on its behalf within his competencies.

(Article 10)

The Fund shall have a full-time Executive Director, whose appointment and financial compensation shall be determined by a decision of the Fund's Board of Directors. The Executive Director shall directly exercise the following competencies:

The following competencies:

1. Implementing the decisions of the Fund's Board of Directors.

2. Supervising the technical, financial, and administrative aspects of the Fund.

3. Supervising the payment of insurance amounts to beneficiaries within the framework of the Fund's regulations.

4. Taking measures to ensure the preservation of the Fund's funds and rights against third parties, and notifying the Chairman of the Board or to him regarding any violations committed by the Fund's employees or its counterparties, as well as any matter that could harm the Fund's interests or hinder it from achieving its objectives.

5. Preparing the Fund's quarterly financial positions, its budget, and its final accounts at the end of each fiscal year, and presenting them to the Board of Directors.

6. Preparing the Fund's estimated budget and presenting it to its Board of Directors no later than three months before the start of its fiscal year, after approval by the Chairman of the Board.

7. Approving the (quarterly - annual) reports on the Fund's activities for presentation to the Board of Directors for review and approval.

8. Any other competencies deemed appropriate by the Fund's Board of Directors to be entrusted or assigned to him.

(Article 11)

The Executive Director of the Fund shall be directly responsible to the Board of Directors and shall attend its meetings without having a deliberative vote.

(Article 12)

The Fund's resources shall consist of the following :

1. Insurance premiums, the determination of which shall be issued by a decision of the Competent Minister based on a technical study prepared by the Fund and approved by the Authority.

2. Returns on the investment of the Fund's funds.

3. Donations, gifts, and grants that the Fund's Board of Directors decides to accept.

4. Any other revenues approved by the Fund's Board of Directors.

(Article 13)

The Fund's fiscal year shall begin with the beginning of the State's fiscal year and end with its conclusion.

(Article 14)

The Fund shall have a revenue and expense account. The revenue side shall record collected insurance premiums, returns on the investment of the Fund's funds, and any other new revenues. The expense side shall record paid compensations and all technical provisions that must be set aside based on an annual actuarial examination. The Fund shall submit a report from an actuary registered in the Authority's records, attached to the budget, proving that technical provisions have been estimated in accordance with sound technical bases approved by the Authority. The Fund shall be bound by the Authority's approval of the results of this examination.

(Article 15)

The Fund shall prepare, within three months following the end of the fiscal year, the following financial statements, reports, and data :

1. A statement of financial position.

2. A statement of revenues and expenses.

3. A statement of the Fund's investments.

4. A report on the Fund's financial position and activities, prepared by the Fund's Executive Director and approved by the Board of Directors.

5. A report from the Central Audit Organization regarding the review of the Fund's financial statements and its revenue and expense accounts.

6. Other reports and data specified by the Authority's Board of Directors.

The Fund shall prepare and compile a guide for applying Egyptian accounting standards to the insurance sector, and submit it to the Authority within the aforementioned period, approved by the Fund's Board of Directors, along with the stamped report from the Central Audit Organization regarding the review of the Fund's budget and its revenue and expense accounts.

(Article 16)

The Fund shall be subject to the supervision of the Central Audit Organization, and the Fund shall make available to the auditors whatever records, documents, and data they deem necessary to complete the financial and administrative audit.

(Article 17)

The Fund shall be obliged to maintain the records and books necessary for conducting its activities, specifically as follows :

1. A revenue register, in which all revenues due to the Fund shall be recorded.

2. A compensation register, in which all claims submitted to the Fund shall be recorded.

3. The dates of compensation payments.