Decrees

Prime Minister's Decision No. 229 of 2003

Establishing a Government Insurance Fund to Cover Risks Facing Postal Services

Prime Minister

Having reviewed the Constitution:

And Law No. 16 of 1970 on the Postal System:

And the Law on Supervision and Control of Insurance in Egypt issued by Law No. 1 of 1981 and its amendments:

And Law No. 19 of 1982 establishing the National Postal Authority:

And Presidential Decree No. 415 of 2001 concerning the amendment of certain provisions on the organization of ministries:

And Prime Minister's Decision dated 8 February 1950 establishing the Government Insurance Fund for Guarantees of Custodians:

And Minister of Economy and Foreign Trade Decision No. 400 of 1986 concerning the terms and prices of insurance at the Government Insurance Fund for Guarantees of Custodians:

And the Executive Bylaw of the Law on Supervision and Control of Insurance in Egypt issued by Minister of Economy and Foreign Trade Decision No. 362 of 1996:

And based on the opinion of the State Council:

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Article One

A fund shall be established within the National Postal Authority named the "Government Insurance Fund for Covering Risks Facing Postal Services", with its headquarters in Cairo, and its funds shall be public funds.

The management of the Fund shall be entrusted to a committee formed by a decision of the Chairman of the Board of Directors of the Authority, as stipulated in this Decision.

Article Two

The Fund aims to cover risks of damage, loss, fire, theft, and embezzlement affecting the printing presses of the Postal Authority, government and private postal units, currency, stamps, seals, documents, duties, and items entrusted to these units or to private carriers, as well as risks arising from any of the aforementioned causes affecting express mail materials or other postal services proposed by the Fund's Management Committee and approved by the Egyptian Insurance Regulatory Authority.

A decision by the Minister of Planning shall be issued to determine the terms and prices of the insurance operations referred to in the preceding paragraph, based on a proposal from the Board of Directors of the Egyptian Insurance Regulatory Authority.

Article Three

The Fund's resources shall consist of the following:

(a) Financial allocations annually designated in the budget of the National Postal Authority for insuring mail and postal units.

(b) Proceeds from insurance premiums on express mail materials.

Article Four

The Fund shall have a special account into which its resources shall be deposited in accordance with the law and within the framework of the financial rules applicable to the National Postal Authority.

Article Five

The Fund's funds shall be invested in the Postal Savings Fund or in other investment avenues determined by the Fund's Management Committee and approved by the Egyptian Insurance Regulatory Authority.

Article Six

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

Article Seven

The Fund shall submit to the Egyptian Insurance Regulatory Authority, within four months following the end of the financial year, the following statements and accounts:

(a) The balance sheet.

(b) The income and expenditure account.

(c) A statement on the distribution of insurance, technical provisions, and expenses.

(d) A statement on the Fund's investments.

(e) A report on the financial position and activities of the Fund.

Article Eight

The Fund's Management Committee shall be composed of:

Chairman of the Board of Directors of the National Postal Authority ... Chairman

Deputy Chairman of the Board for Postal Affairs ... Member

Head of the Savings and Financial Affairs Sector ... Member

Two individuals with expertise in the insurance field selected by the Minister of Planning.

Article Nine

The Fund's Management Committee shall be responsible for managing its affairs, administering its resources, determining its general policy and annual project plan, and may take necessary decisions to achieve the purposes for which it was established, specifically:

1. Determining the various fields of insurance, insured values, and applicable insurance premiums.

2. Approving necessary measures to secure and guard postal facilities and stations to ensure adequate safety in this regard.

3. Approving terms and procedures for depositing, accepting, and packaging mail materials and parcels of all kinds, as well as insured international mail items.

4. Determining procedures to be followed in the event of damage, loss, fire, theft, or embezzlement covered by the insurance.

5. Approving the compensation amount due upon the occurrence of the insured risk, approving disbursement terms, and specifying procedures.

6. Determining the records, investments, and equipment necessary for conducting the Fund's operations.

7. Determining rules and procedures for recourse against employees and others for the value of what the Fund bears.

After establishing the elements of liability in accordance with the law.

8. Contracting with insurance companies to cover certain risks of a special nature or certain activities conducted by the Authority, subject to approval by the Egyptian Insurance Regulatory Authority.

Article Ten

Insurance with the Fund for items insured at the Government Insurance Fund for Guarantees of Custodians shall not be permitted unless the insurance aims to cover a deficiency in the custodial guarantee that exceeds the maximum compensation provided by that Fund.

Article Eleven

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

Issued at the Prime Minister's Office on 4 Dhu al-Hijjah 1423 AH

(Corresponding to 5 February 2003 AD)

Prime Minister

Dr. Atef Obeid