Regulatory Alerts2021-01-01
Decision of the Chairman of the Financial Regulatory Authority No. (1661) for 2021
The Financial Regulatory Authority issued Decision No. 1661 of 2021 to formally approve and mandate the implementation of a standardized personal accident insurance policy model specifically designed for Egyptians working abroad. Administered by the Egyptian Travel Insurance Pool, the policy provides a maximum coverage of 100,000 Egyptian pounds for accidental death and repatriation costs worldwide (excluding Egypt), with a maximum insured age of 65. The decision outlines comprehensive coverage terms, exclusions, notification obligations, and subrogation rights, taking full legal effect on January 1, 2022.
Financial Regulatory Authority Chairman of the Authority
Decision of the Financial Regulatory Authority No. (1661) for 2021 dated: 2021/10/10 regarding the implementation of the personal accident insurance policy model for Egyptians working abroad
Chairman of the Financial Regulatory Authority Having reviewed Law No. 131 of 1948 issuing the Civil Code; and Law No. 10 of 1981 regarding supervision and regulation of insurance in Egypt, its executive regulations, and amendments; and Law No. 10 of 2009 regarding the regulation of supervision over non-banking financial markets and instruments; and Presidential Decision No. 192 of 2009 issuing the Statute of the Financial Regulatory Authority; and the Authority's Board of Directors Decision No. 144 of 2018 regarding charging a service fee of one-thousandth for reviewing and approving new insurance policy models or amending existing ones, and its amendments; and the Authority's Decision No. 698 of 2021 regarding the establishment of the Egyptian Travel Insurance Pool; and the Memorandum of Understanding between the State Ministry for Migration and Egyptians Abroad and the Egyptian Insurance Union, under the patronage of the Financial Regulatory Authority, signed on 20/09/2021; and the letter from the Egyptian Travel Insurance Pool received by the Authority on 06/10/2021 under No. 25725 regarding the request to approve the personal accident insurance policy for Egyptians working abroad. and the memorandum of the Central Administration for Insurance Product Approval on this matter;
Decided: (Article One) The attached model of the personal accident insurance policy for Egyptians working abroad is hereby approved, and the Egyptian Travel Insurance Pool shall manage it in accordance with its statute.
(Article Two) This Decision shall be published in the Egyptian Gazette, and on the websites of the Authority and the Pool, and shall take effect as of 01/01/2022.
Chairman of the Board of Directors, Financial Regulatory Authority Dr. Mohamed Omran
Smart Village, Building 136, Giza, Egypt Postal Code 110 Tel: +20235345350 Fax: +20235370036 WWW.FRA.GOV.EG
Model of the Personal Accident Insurance Policy for Egyptians Working Abroad Smart Village, Building 136, Giza, Egypt Postal Code 110 Tel: +20235345350 Fax: +20235370036 WWW.FRA.GOV.EG
Preamble Based on the personal data of the insured named in the policy schedule, recorded with a work permit and passport, and submitted to the Egyptian Travel Insurance Pool (hereinafter referred to as "the Pool"), which constitutes the basis for contracting, an integral part of this policy, and consideration for the payment of the insurance premium. The Egyptian Travel Insurance Pool undertakes to pay the insured, in case of his death outside the Arab Republic of Egypt, the insurance amount as specified hereinafter, resulting from a sudden, accidental, violent, external, apparent, and independent event not covered by any other cause stipulated in the policy, which occurs to the insured person and results solely in death, according to the terms, conditions, and exclusions stated in the policy, within the insurance period specified in the schedule or any subsequent period accepted by the Pool, provided that the insured has paid the due premium. Smart Village, Building 136, Giza, Egypt Postal Code 110 Tel: +20235345350 Fax: +20235370036 WWW.FRA.GOV.EG
General Conditions Clause One: Coverage Cases First: Death by accident: The Pool shall pay the insurance amount shown in the policy schedule upon the death of the insured within one year from the date of the accident to the beneficiaries specified in the schedule or to those legally entitled if no beneficiaries are designated, provided that if the insured dies by the intentional act of any beneficiary or entitled person, his share in the payable amount shall vest with the legal heirs. Second: Repatriation costs to the country of residence in case of the insured's death: If the insured dies while traveling abroad, the Pool shall bear the actual expenses for repatriating the body for burial in Egypt.
Clause Two: Geographical Limits All over the world except the Arab Republic of Egypt.
Clause Three: Insurance Coverage Limits It is known and expressly agreed that the maximum insurance amount is 100,000 (one hundred thousand Egyptian pounds only).
- The Pool pays the actual costs of repatriating the body regardless of the cause of death.
- In case of death by accident, the Pool pays the actual repatriation costs, and the remaining amount is distributed among legal heirs according to the inheritance notification.
- The maximum age of the insured is 65 years. Smart Village, Building 136, Giza, Egypt Postal Code 110 Tel: +20235345350 Fax: +20235370036 WWW.FRA.GOV.EG
Clause Four: Exclusions This policy does not cover deaths arising from any of the following cases: 1- War or invasion, any act of an enemy, aggression, hostilities (whether war is declared or not), civil war, revolution, conspiracy, acts of military or usurping power, rebellion, military or popular uprising, or insurrection. 2- Nuclear radiation or contamination from any nuclear fuel, nuclear waste, or nuclear explosions, or parts thereof. 3- Travel on military aircraft. 4- Suicide or attempted suicide, or the insured intentionally harming himself, or due to committing criminal or illegal acts. 5- Loss of will due to insanity or being under the influence of a narcotic or intoxicant. 6- Use of chemical or biological weapons. 7- Medical treatment costs resulting from illness or accident, and ambulance transport. 8- Riots, civil commotion, labor strikes, terrorism, and sabotage, provided the insured is a victim of such acts and not a participant. 9- Accidents occurring within the territory of the Arab Republic of Egypt.
Clause Five: Maximum Insurance Amount In all cases, the total amount paid under this policy during the insurance period shall not exceed the maximum insurance amount specified in the schedule for death and repatriation cases, which is one hundred thousand Egyptian pounds. Smart Village, Building 136, Giza, Egypt Postal Code 110 Tel: +20235345350 Fax: +20235370036 WWW.FRA.GOV.EG
Clause Six: Notifications a. All notifications to be communicated to the Pool must be in writing and addressed to the Pool, by submitting an official form or a letter sent via registered mail or email. b. The Pool is in no case obligated to notify the policyholder of the policy expiration date, nor is it bound to renew it, and is not responsible for any claims arising from accidents occurring after the policy expiration, unless the policy has been renewed upon the insured's request and confirmed in writing by the Pool.
Clause Seven: Obligations of the Insured or His Representative Following an Accident In case an accident giving rise to a claim under this policy occurs, the insured or his representative shall undertake the following:
- Notify the Pool immediately of the accident within seven days from its occurrence.
- Submit to the Pool all medical reports, death certificate, and any documents related to the accident. If the insured or his representative fails to perform the above obligations or delays in doing so, his right to claim compensation arising from this accident is forfeited, unless it appears from the circumstances that the delay was due to a valid excuse.
Clause Eight: Forfeiture of Rights All rights of the insured arising from this policy are forfeited in the following cases: a. If the insured or his representative provides incorrect information in the insurance application or attached declarations with the intent to induce the underwriting Pool to accept the insurance, or if he conceals material information that he was obliged to notify before the policy takes effect. b. The insured or his representative violates laws and regulations governing his activity, if it involves an intentional felony or misdemeanor. c. The right of the insured or beneficiaries to claim compensation for the subject accident is forfeited if the insured or his representative provides misleading information regarding this accident, involves fraud, supports the claim with fraudulent statements, or if the accident is fabricated. Smart Village, Building 136, Giza, Egypt Postal Code 110 Tel: +20235345350 Fax: +20235370036 WWW.FRA.GOV.EG
Clause Nine: Subrogation in Rights The Pool has the right to seek recourse against third parties responsible for the accident regarding any compensation paid due to any covered accident under this policy.
Clause Ten: Competent Courts All disputes arising from the interpretation or execution of this policy fall under the jurisdiction of competent Egyptian courts within whose district lies the entity that issued this policy.
Clause Eleven: Statute of Limitations The coverage under this policy is subject to the statute of limitations in accordance with Article (752) of the Egyptian Civil Code. Smart Village, Building 136, Giza, Egypt Postal Code 110 Tel: +20235345350 Fax: +20235370036 WWW.FRA.GOV.EG
Personal Accident Insurance Policy Schedule Policy No.: .................................... Branch: .................................... Insurance Period: .................... From: / / To: / / at 12:00 noon Geographical Limits: All over the world except the Arab Republic of Egypt Insurance Amount: Maximum Coverage 100,000 Egyptian pounds (one hundred thousand Egyptian pounds only) Contracting Party Name: ........................................................................ Address: ........................................................................ Insured Name: ........................................................................ Address: ........................................................................ Occupation or Activity of the Insured: ........................................................................ Date of Birth of the Insured: .................... / .................... / .................... Passport Number: ........................................................................ Work Permit Number: ........................................................................ Beneficiaries in case of insured's death: Legal heirs unless otherwise specified.
Premium Calculation Currency: Egyptian pounds Net Premium: .. Proportional Stamp Duty (Half): .. Specific Tax: .. Supervision and Regulation Fee: .. Policy Review and Approval Fee: .. Policyholders' Guarantee Fund: .. Issuance Expenses: .. Gross Premium: ..