Regulatory Alerts2015-01-01
Law No. 98 of 2015 Amending Certain Provisions of Law No. 10 of 1981 on the Supervision and Control of Insurance in Egypt
President Abdel Fattah El-Sisi of Egypt issued Law No. 98 of 2015 to amend Article 24 of the 1981 Insurance Supervision Law, formally defining government insurance funds as independent legal entities established by Prime Ministerial decree to cover uninsurable or state-managed risks. The legislation mandates that the competent Minister, guided by a fund-prepared technical study and Financial Regulatory Authority controls, set the specific terms and pricing for these insurance operations. Furthermore, the law requires the executive regulations to explicitly outline the supervisory mechanisms the Authority will apply to monitor these government funds.
The Official Gazette - Issue No. 34 Repeated (A) on 22 August 2015
Decision of the President of the Arab Republic of Egypt
By Law No. 98 of 2015
Amending Certain Provisions of the Law on Supervision and Control of Insurance in Egypt
Issued by Law No. 10 of 1981
President of the Republic
Having reviewed the Constitution;
and the Civil Code;
and the Law on Supervision and Control of Insurance in Egypt issued by Law No. 10 of 1981;
and Law No. 10 of 2009 regulating supervision over non-Egyptian secrets and financial instruments;
and after obtaining the opinion of the Board of Directors of the Financial Regulatory Authority;
and after approval by the Council of Ministers;
and upon referral by the State Council;
Decided
The following Law:
(Article One)
The text of Article (24) of the Law on Supervision and Control of Insurance in Egypt issued by Law No. 10 of 1981 is replaced with the following:
«Government insurance funds refer to funds that conduct insurance operations against risks that insurance companies usually do not accept, or those that the government deems appropriate to conduct itself.
The establishment and regulation of a government insurance fund shall be by a decision of the Prime Minister.
It shall possess independent legal personality.»
(Article Two)
The conditions and prices of the insurance operations referred to shall be 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.
The executive regulations of this Law shall include the provisions governing the Authority's supervision over these funds.
This decree-law shall be published in the Official Gazette and shall take effect from the following day.
As of its publication date
Issued by the President of the Republic on 7 Dhu al-Qi'dah 1436 AH
(Corresponding to 22 August 2015 AD)
Abdel Fattah El-Sisi