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

Prime Minister's Decision No. 1584 of 2019 Establishing the Government Insurance Fund for Al-Azhar Education Students

Prime Minister

After reviewing the Constitution; and the Civil Code; and Law No. 103 of 1961 concerning the reorganization of Al-Azhar and the entities it covers, and its amended laws; and the Law on the Central Agency for Organization and Administration 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 Law on the Central Auditing Organization issued by Law No. 144 of 1988; and Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; and the Civil Service Law issued by Law No. 81 of 2016; and after obtaining the opinion of the Financial Regulatory Authority; and based on the Council of State's opinion;

Decided:

(Article One)

For the purposes of applying 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 Al-Azhar Education Students.
• The Authority: The Financial Regulatory Authority.

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

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The Competent Minister: The Minister competent for applying the provisions of Law No. 10 of 2009 mentioned above.

Students: Students of official Al-Azhar institutes, private institutes subject to the supervision of Al-Azhar Al-Sharif, Al-Azhar University students, and foreign students.

(Article Two)

An independent legal entity government insurance fund shall be established at Al-Azhar Al-Sharif, subordinate to His Eminence the Grand Imam of Al-Azhar, with its headquarters in Cairo, and it may establish branches in other governorates.

(Article Three)

The Fund aims to provide an insurance protection umbrella for students to cover risks of natural death or death resulting from an accident, as well as bodily injuries resulting from an accident and any resulting total or partial disability, and to cover any required surgical operations and treatments up to a maximum coverage amount determined by a decision of the Competent Minister.

The Fund shall exercise its functions in accordance with the provisions of this Decision, and under the conditions and premiums determined by a decision of the Competent Minister based on a technical study prepared by the Fund in accordance with the controls specified 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 eligible for exemption in accordance with controls issued by a decision of His Eminence the Grand Imam of Al-Azhar, 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.

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

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(Article Four)

The Fund shall be registered in the dedicated registry at the Authority, and shall be subject to the provisions governing 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 and surplus shall be allocated to cover its expenses and liabilities to policyholders.

(Article Five)

The Fund shall be managed by a Board of Directors consisting of a Chairman and six members, two of whom shall be insurance experts approved by the Authority. The formation of the Board of Directors shall be issued by a decision of His Eminence the Grand Imam of Al-Azhar, and the decision shall specify the value of attendance allowances for Board meetings.

The term of office for Board members shall be three years, renewable once. The Board shall convene upon the Chairman's call at least once every three months, or whenever necessary. A meeting shall not be valid unless at least five members are present. Decisions shall be made by a majority of votes of those present, and in case of a tie, the Chairman's side shall prevail. In case the Chairman cannot attend, he may delegate one of the members to preside over the meeting.

His Eminence the Grand Imam of Al-Azhar may also call the Fund's Board of Directors to convene to review matters he specifies.

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

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(Article Six)

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

1. Proposing amendments to the benefits or premium system, or both, within the purpose for which the Fund was established, after preparing the necessary administrative study to examine the Fund's financial position and upon approval by the Financial Regulatory Authority.

2. Establishing the Fund's organizational structure, financial and administrative regulations, and employee affairs regulations.

3. Approving an internal control system aimed at:

(a) Verifying the Fund's and its employees' compliance 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.

4. Determining investable avenues for the Fund's funds, considering the provisions of 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.

5. Approving the Fund's financial position, estimated budget, and final account.

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

7. Providing opinions on all draft regulations and decisions related to the Fund's competencies.

8. Reviewing any matters His Eminence the Grand Imam of Al-Azhar or the Competent Minister refers to it that fall within the Fund's competencies.

The Authority shall be notified of the Fund's Board of Directors' decisions within two weeks from their issuance date.

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

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(Article Seven)

The Chairman of the Board of Directors shall represent the Fund in court and in its dealings with third parties.

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(Article Eight)

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 exercise 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 any substitute of any violations committed by Fund employees or 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, accounts, and statements.

6. Preparing final accounts at the end of each financial year and presenting them to the Board of Directors.

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

8. Any other competencies the Fund's Board of Directors deems appropriate to entrust or assign to him.

The Fund's Executive Director shall bear direct responsibility before the Board of Directors and shall attend its meetings without having a voting right.

(Article Nine)

The Fund's resources shall consist of the following:

1. Insurance premiums determined 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. Grants, donations, and subsidies that the Fund's Board of Directors decides to accept.

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

(Article Ten)

The Fund's funds shall be considered public funds, deposited in one or more special accounts at a bank registered with the Central Bank of Egypt, designated for disbursement for the Fund's purposes in accordance with this Decision. The Authority shall be notified of the aforementioned account and any fundamental modification or change thereto.

(Article Eleven)

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

(Article Twelve)

The Fund shall have an income and expenditure account. The income side shall record collected insurance premiums, returns on the Fund's investments, and any other new revenues. The expenditure side shall record paid compensations and all technical provisions set aside based on an annual actuarial examination. The Fund shall submit a report from an actuary registered with the Authority's records, attached to the budget, proving that technical provisions were 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 Thirteen)

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

1. Statement of financial position.

2. Statement of income and expenditures.

3. Statement of the Fund's investments.

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

5. A report from the Central Auditing Organization regarding the review of the Fund's financial statements and its income and expenditure accounts.

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

These statements, reports, and data shall be prepared according to the forms issued by the Authority and in compliance with the application of Egyptian accounting standards to the insurance sector. They shall be submitted to the Authority within the aforementioned period, approved by the Fund's Board of Directors, and accompanied by the Central Auditing Organization's report on the review of the Fund's budget and its income and expenditure accounts.

(Article Fourteen)

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

(Article Fifteen)

The Fund shall be obligated to maintain the records and books necessary to balance its activities, specifically as follows:

1. Income register, recording all revenues due to the Fund.

2. Compensation register, recording all claims submitted to the Fund.

3. Investments register, recording invested funds, investment channels, and the return achieved for each.

4. Reserved funds register, authenticated by the Authority, recording reserved funds and modifications to the composition of these funds on a continuous basis.

5. Register of complaints received by the Fund.

6. Register of the Fund's Board of Directors meeting minutes.

7. Register of ongoing lawsuits.

8. Accounting books necessary to clarify expenditures, revenues, and financial position in accordance with recognized insurance practice rules.

9. Other records and books that the Authority deems necessary to maintain.

The records may be developed using computer systems in accordance with the rules and standards issued by the Authority's Board of Directors.

The Fund's records and books must be approved by the Authority prior to use.

The Fund shall keep at its administrative center the records, documents, and archives specified by the Authority.

(Article Sixteen)

This Decision shall be published in the Official Gazette and shall take effect from the day following its publication date.

Issued at the Prime Minister's Office on 3 Dhu al-Qi'dah 1440 AH (Corresponding to 6 July 2019 AD)

Prime Minister Dr. Mostafa Madbouly