Chairman's Decision No. 166 of 2021

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الهيئة العامة للرقابة المالية
رئيس الهيئة

Chairman's Decision
No. (166) of 2021 dated: 10/1/2021
Regarding the amendment of Decision No. (698) of 2021

Chairman of the Board of Directors of the Egyptian Insurance Authority Having reviewed:

• The Law on Supervision and Regulation of Insurance in Egypt issued by Law No. (10) of 1981 and its Executive Regulations;
• Law No. (10) of 2009 on the Regulation of Non-Banking Financial Markets and Instruments;
• Chairman's Decision No. (698) of 2021 establishing the Egyptian Travel Insurance Pool and approving its Bylaws;
• The Memorandum of Understanding signed on 20/9/2021 between the State Ministry for Egyptian Expatriates Affairs and the Egyptian Insurance Union, under the auspices of the Authority;
• The minutes of the General Assembly meeting of the Pool held on 3/10/2021.

Has Decided

(Article One)
The text of Article Two of the issuance conditions of the Authority's Decision No. (698) of 2021 referenced above is replaced with the following:
(Article Two):
The Pool shall manage travel insurance policies for passports issued by the Ministry of Interior, and it is also authorized to manage personal accident insurance policies for Egyptians working abroad.

(Article Two)
The text of the second paragraph of the preamble to the Bylaws of the Egyptian Travel Insurance Pool issued by the Authority's Decision No. (698) of 2021 referenced above is replaced with the following:
(Preamble - Paragraph Two):
The Pool shall be responsible for the following:
First: Managing travel insurance policies abroad and compensating claimants according to the policy terms approved by the Authority, along with administrative and financial operations related to organizing work in this field among Pool members, managing the joint account, and distributing each member's share of premiums, compensations, and costs. Second: Managing personal accident insurance policies for Egyptians working abroad and compensating claimants according to the policy terms approved by the Authority, along with administrative and financial operations related to organizing work in this field among Pool members, managing the joint account, and distributing each member's share of premiums, compensations, and costs.

(Article Three)
The texts of Articles (1 paragraphs 1, 4, and 5; 4; 5 clauses "1, 2, 3, 8"; 8 clause "2, 4"; 11 clause "8"; 17; 26; 27) of the Bylaws of the Egyptian Travel Insurance Pool issued by the Authority's Decision No. (698) of 2021 referenced above are replaced with the following texts:

Article (1 - Paragraph One):
A pooling insurance company named "(The Egyptian Travel Insurance Pool)" was established in the Arab Republic of Egypt in accordance with the provisions of the Law on Supervision and Regulation of Insurance issued by Law No. (10) of 1981, its Executive Regulations, and their amendments, as well as other prevailing laws. The Pool shall commence its actual operations upon the issuance of the Authority's decision establishing it and its registration in the Pool Register at the Authority, among insurance companies and cooperative insurance associations licensed by the Authority to issue travel insurance policies and personal accident insurance policies for Egyptians working abroad.

Article (1 - Paragraph Four):
No insurance company or cooperative insurance association may issue, in any form, the two insured policies that the Pool is licensed to manage, in accordance with the provisions of this system, outside the scope of the Pool.

Article (1 - Paragraph Five):
This does not prejudice the right of insured beneficiaries to conclude supplementary travel insurance policies or supplementary personal accident insurance policies with additional coverage from any insurance companies and cooperative insurance associations licensed by the Authority to issue travel insurance and personal accident insurance policies.

Article (4):
Objective of the Pool
The Pool directly and on behalf of members manages travel insurance policies for holders of passports issued by the Ministry of Interior, and manages personal accident insurance policies for Egyptians abroad in accordance with the protocol concluded between the Authority and the Ministry of Migration and Egyptian Expatriates Affairs. It manages all matters related to the insurance process according to policy terms, conditions, and exceptions; collects premiums for the policies; prepares all financial records related to accounting operations; manages and pays compensations to entitled parties; and prepares account statements for Pool members.

Article (5 - Clauses 1, 2, 3, 8):
1. Determining the total premium for travel insurance policies at 300 EGP (three hundred Egyptian pounds) per passport validity period, and determining the total premium for personal accident insurance policies for Egyptians working abroad at 100 EGP (one hundred Egyptian pounds) annually. The Pool may periodically review this based on technical and actuarial studies prepared by the Administrative Committee for this purpose and presented to its General Assembly. No amendment shall take effect until the opinion of the Ministry of Interior is obtained and the Authority approves it.
2. Managing and issuing travel insurance policies and personal accident insurance policies approved by the Authority electronically for members, and collecting due premiums and fees.
3. Establishing and/or purchasing and/or leasing necessary premises for issuing insurance policies in accordance with this system, managing and settling compensations, and performing other assigned Pool operations; equipping them with furniture, devices, equipment, and appropriate communication networks.
8. The Pool maintains separate accounts for each type of insurance licensed to it, preparing financial position statements and joint accounts that include premiums distributed by shares minus amounts paid to members and all expenses and compensations. In case of a deficit, all members are obligated to settle the deficit within a maximum period of (thirty days) from the date of notification, in quarterly installments and notifying members thereof.

Article (8 - Clause 2):
2. Proposing re-distribution ratios for travel insurance shares and personal accident insurance policies for Egyptians working abroad in the event of a new member joining, an existing member withdrawing, or a share reduction, subject to submission to the Authority for approval.

Article (8 - Clause 4):
Clause No. (4) is deleted: "Approval of regulations established by the Administrative Committee, and the article is renumbered."

Article (11 - Clause 8) [Added]:
8. "Approval of regulations established by the Executive Director and amendments thereto after presentation to the General Assembly."

Article (17):
The Pool may hold one or more accounts at any Egyptian bank registered with the Central Bank of Egypt, into which revenues from travel insurance policies are deposited and due compensations are disbursed. It may also hold another account or more into which revenues from personal accident insurance policies for Egyptians abroad are deposited and due compensations are disbursed. Necessary amounts for the Pool's operations shall also be paid from these accounts.

Article (26):
Shares of the founding companies of the Pool shall be distributed according to the attached tables in the system.
It is within the General Assembly's authority to review the basis for distributing shares among members in light of amendments arising from the admission or exit of any licensed companies providing travel and personal accident insurance, provided that the new basis is approved by the Egyptian Insurance Authority.

Article (27):
Mechanism for Reviewing Travel and Personal Accident Insurance Shares for Egyptians Working Abroad The mechanism for distributing travel insurance shares and personal accident insurance policies for Egyptians working abroad among Pool members shall be reviewed every two years by the Authority according to the guidelines and criteria established by the Authority, subject to approval of those shares by the Authority.

(Article Four)
This Decision shall be published in Al-Waqai' Al-Misriya (Egyptian Official Gazette) and on the Authority's website, and shall take effect from the day following its publication in Al-Waqai' Al-Misriya.

Chairman of the Board of Directors of the Egyptian Insurance Authority Dr. Mohamed Omran

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Table (1)
Model for Distributing Shares of Insurance Companies Members of the Egyptian Travel Insurance Pool (Travel Care Insurance Policy)

No.	Company Name	Companies' Share after Distributing (Tawuniya) Percentage
1	Allianz Insurance Company - Egypt	16.852
2	AIG Egypt Insurance Company	13.328
3	Orient Takaful Insurance Company - Egypt	8.749
4	Misr Insurance Company	8.264
5	Delta Insurance Company	7.045
6	Wathiq Takaful Insurance Company - Egypt	5.533
7	GIG Insurance Company - Egypt	4.258
8	Egyptian Saudi Insurance House	4.086
9	Egyptian Takaful Insurance Company for Property and Liabilities	4.078
10	Royal Insurance Company	2.212
11	Suez Canal Insurance Company	2.124
12	Tawuniya Insurance Company - Egypt	-
13	Egyptian Cooperative Insurance Association	2.041
14	El Mohandes Insurance Company	2.041
15	Misr Takaful Insurance Company - Property and Liabilities	2.041
16	Tokyo Marine Egypt General Takaful	2.041
17	Aroob Insurance Company for Property and Liabilities	2.041
18	Eskan Insurance Company	2.041
19	AXA Insurance Egypt	2.041
20	Tharwa Insurance Company	2.041
21	National Insurance Company	5.102
22	Madany Insurance Company	2.041
	Total	100

Basis for Distributing Shares:

1. The relative weight of each company is calculated based on (90%) of the average direct premiums for travel policies over the last five financial years (June 2016 - June 2020) and (10%) of shareholders' equity for the last financial year (June 2020).
2. A share of (5%) is determined for National Insurance Company based on its efforts in this project.
3. A minimum share of (2%) is determined for all companies licensed by the Authority to issue travel insurance policies (as one of the miscellaneous accidents branches).
4. A minimum share of (1%) is determined for companies that have not issued travel insurance policies.
5. The average direct premiums for travel insurance policies over the last five years (June 2016 - June 2020) are considered the basis for preparing the share distribution model.

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Table (2)
Model for Distributing Shares of Insurance Companies Members of the Egyptian Travel Insurance Pool (Personal Accident Insurance Policy for Egyptians Working Abroad)

No.	Company Name	Companies' Share after Distributing (Tawuniya) Percentage
1	National Insurance Company	5.20
2	Misr Insurance Company	11.07
3	Suez Canal Insurance Company	4.40
4	El Mohandes Insurance Company	4.44
5	Delta Insurance Company	4.49
6	AIG Egypt Insurance Company	4.36
7	GIG Insurance Company - Egypt	4.59
8	Royal Insurance Company	4.40
9	Allianz Insurance Company - Egypt	4.50
10	Egyptian Saudi Insurance House	4.40
11	Egyptian Takaful Insurance Company for Property and Liabilities	4.51
12	Eskan Insurance Company	4.35
13	Tokyo Marine Egypt General Takaful	4.35
14	Wathiq Takaful Insurance Company - Egypt	4.40
15	AXA Insurance Egypt	4.41
16	Misr Takaful Insurance Company - Property and Liabilities	4.34
17	Aroob Insurance Company for Property and Liabilities	4.39
18	Orient Takaful Insurance Company - Egypt	4.54
19	Egyptian Cooperative Insurance Association	4.32
20	Tawuniya Insurance Company - Egypt	-
21	Madany Insurance Company	4.27
22	Tharwa Insurance Company	4.27
	Total	100%

Company shares were calculated based on the following:

1. A 5% discretionary share for National Insurance Company.
2. A 95% share distributed among companies as follows:
   • 90% equally among all companies.
   • 10% for equity as of 30-6-2020.

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