Financial Regulatory Authority

FINANCIAL REGULATORY AUTHORITY

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Decision No. 1919 of 2021

Dated 10/11/2021

Regarding the Amendment and Addition of Certain Articles of the Bylaws

of the Compulsory Civil Liability Insurance Association Arising from Accidents of Rapid Transport Vehicles

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Chairman of the Financial Regulatory Authority

Having reviewed Law No. 10 of 1981 promulgating the Supervision and Control of Insurance Law in Egypt, and its Executive Regulations,

and Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments,

and the Presidential Decision No. (192) of 2009 promulgating the Bylaws of the Financial Regulatory Authority,

and the Authority's Decision No. (202) of 2019 establishing the Compulsory Civil Liability Insurance Group Arising from Rapid Transport Vehicle Accidents and registering it in the Authority's designated registry under No. (8),

and the Group's Bylaws,

and the Ordinary General Assembly Decision of the Association convened on 19/10/2021,

and the memorandum of the Establishment, Licensing, and Professional Registration Sector prepared herein.

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Has Decided

Article (1):

The following texts shall replace the provisions of Articles (7, 10, Item No. 4 of Article 11, "Item No. 3 of Article 14") of the Group's Bylaws:

Article (7) General Assembly:

The General Assembly of the Group is its supreme authority, and it consists of the chairmen of the boards of directors of insurance companies and cooperative insurance associations that are members, or their deputies, or appointed members. They have the right to delegate senior management officials of these companies and associations to attend the General Assembly meetings, presided over by the Chairman of the Egyptian Insurance Union or his deputy.

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Article (10) Administrative Committee:

The Group shall have an administrative committee elected by the General Assembly, consisting of seven members representing insurance companies and cooperative insurance associations that are members of the Group. They must be among the chairmen of the boards of directors of the companies and cooperative insurance associations, or their deputies, or appointed members among them, and senior management officials of these companies and associations. The Administrative Committee shall elect one of its members as chairman. Its term shall be three years.

Item No. (4) of Article (11):

Approval of the annual report on the Group's activities within two months at most from the end of the financial year, including the accounts of member companies and the statement of financial position.

Item No. (3) of Article (14):

Preparation of the Group's estimated budget at least two months before the start of the financial year.

Article (2):

The following texts shall be added to "Item No. 10 of Article 5", "Item No. 13 of Article 14, Article 8 Item No. 8" of the Group's Bylaws:

Item No. (10) of Article (5) Conducting Business:

The Group shall calculate the technical provisions for compulsory vehicle insurance policies by calculating (the valid unearned premium reserve – compensation reserves under payment) in accordance with the recognized technical and legal bases for calculating such provisions, which shall be reviewed and approved by the Group's actuary. The Group shall periodically obtain approval from the Financial Regulatory Authority and insurance companies "Group members" for these provisions on a "quarterly – annual" basis without including them in the Group's financial statements.

Item No. (13) of Article (14):

Determination of the attendance of the Administrative Committee members at the Group's periodic meetings, as well as their allowances for attending other subsidiary committees. Half of the allowance shall also be paid to them or to non-committee members engaged by them when attending meetings of the Administrative and subsidiary committees.

Item No. (14):

Determination of a bonus for the Administrative Committee members of the Group.

Item No. (8) of Article (11):

Approval of the Group's estimated budget before the start of the financial year by forty-five days.

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Article (3):

Establishment of a new Article No. (20) to the Group's Bylaws:

Article (20) Tax Obligations:

Insurance companies "Group members" shall record all their revenues and expenses related to the compulsory vehicle insurance branch within their accounts, as well as in their annual tax returns. Insurance companies "Group members" shall bear the corporate income tax on profits from this activity and shall settle it at their own expense. Member companies shall annually provide the Group with evidence confirming that their tax base and return include all compulsory vehicle insurance revenues and expenses.

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Article (4):

This Decision shall be published in the Egyptian Gazette, and concerned parties are tasked with its implementation.

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Chairman of the Board
Financial Regulatory Authority

Dr. Mohamed Amran

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Smart Village, Building 137, Giza, Egypt
Postal Code: 110
Telephone: +2027054090
Fax: +20230780036
WWW.FRA.GOV.EG

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