Prime Minister's Decision No. 1828 of 2007 Issuing the System of the Government Fund for Covering Damages Resulting from Accidents of Rapid Transport Vehicles in the Arab Republic of Egypt

Egyptian Official Gazette - Issue 193 on 23 August 2007

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### Decisions

#### Prime Minister's Decision
No. 1828 of 2007
Issuing the System of the Government Fund
for Covering Damages Resulting from Accidents of Rapid Transport Vehicles
Inside the Arab Republic of Egypt

**Prime Minister**

Having reviewed the Constitution;
Having reviewed Traffic Law No. 66 of 1973;
Having reviewed Insurance Supervision and Control Law in Egypt No. 10 of 1981;
Having reviewed Compulsory Insurance Law for Civil Liability Resulting from Accidents of Rapid Transport Vehicles Inside the Arab Republic of Egypt No. 72 of 2007;
Having reviewed Presidential Decision No. 231 of 2004 Organizing the Ministry of Investment;
Based on the opinion of the State Council;
Based on the proposal of the Minister of Investment;

**Decided:**

**(Article One)**
The accompanying System regarding the Government Fund for covering damages resulting from accidents of rapid transport vehicles inside the Arab Republic of Egypt shall be enforced.

**(Article Two)**
This Decision and its accompanying System shall be published in the Egyptian Official Gazette, and shall be enforced from the day following their publication date.

Issued at the Prime Minister's Office on 7 Sha'ban 1428 AH
(Corresponding to 23 August 2007 AD)

Prime Minister
Dr. Ahmed Nazif

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### System of the Government Fund
for Covering Damages Resulting from Accidents of Rapid Transport Vehicles
Inside the Arab Republic of Egypt

**(Article One)**
In applying the provisions of this System, the following terms shall have the meanings indicated alongside each:
- **The Law**: Compulsory Insurance Law for Civil Liability Resulting from Accidents of Rapid Transport Vehicles Inside the Arab Republic of Egypt, issued by Law No. 72 of 2007.
- **The Authority**: Egyptian Insurance Authority.
- **The Fund**: The Government Fund for covering damages resulting from accidents of rapid transport vehicles inside the Arab Republic of Egypt.
- **The Competent Minister**: Minister of Investment.

**(Article Two)**
The Fund shall be subject to the supervision of the Authority, and its main office shall be located in Cairo. The Fund may establish branches in the governorates, and its assets shall be considered public funds.

**(Article Three)**
The Fund aims to cover damages resulting from accidents of rapid transport vehicles in the following cases:
1. When the vehicle responsible for the accident is unknown.
2. When the vehicle is not insured for third-party liability.
3. Accidents involving vehicles exempted from licensing procedures.
4. Cases of insurance company insolvency.
5. Other cases decided by the Board of Directors of the Egyptian Insurance Authority.

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**(Article Four)**
The aforementioned Fund shall be registered in the register prepared for it by the Authority and shall be subject to all regulations governing government insurance funds under the Insurance Supervision and Control Law in Egypt, issued by Law No. 10 of 1981, and its executive regulations.

**(Article Five)**
The Fund shall pay the insurance amounts stipulated for paramedics in accordance with Article (8) of the aforementioned Compulsory Insurance Law, in the cases stipulated in Article (2) of this System.

**(Article Six)**
In the event the Fund pays the insurance value to paramedics in cases (2 and 3) of Article Three of this System, the Fund shall have the right of recourse against the car owner, vehicle owner, or the party causing the damage for the insurance value paid.

**(Article Seven)**
The Fund shall be managed by a Board of Directors consisting of an odd number of members, not less than three and not more than nine.
The term of office for board members shall be three years.
The appointment of the Fund's Board of Directors Chairman and its members, as well as their financial treatment, shall be issued by a decision of the Competent Minister based on the Authority's proposal.
The Fund's Director shall attend Board of Directors meetings without having a voting right.
The Board may delegate some of its authorities to a committee from among its members or to its Chairman, and may authorize one of its members to perform a specific task, and may employ experts as it deems fit.
The Fund's Board Chairman shall act on behalf of the Fund in relations with third parties and before the courts.

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**(Article Eight)**
The Board of Directors shall convene at least once every three months upon invitation by its Chairman. A board meeting shall not be valid unless two-thirds of the members, including the Chairman, are present.
Decisions shall be adopted by a majority of the votes of the attending members. In case of a tie, the side on which the Chairman votes shall prevail.

**(Article Nine)**
The Board of Directors shall be responsible for managing the Fund, handling its affairs, and managing its resources. To this end, it may take the necessary decisions to achieve the purposes for which it was established, and in particular:
1. Establishing the necessary systems and regulations for the Fund's management.
2. Determining the avenues and percentages for investing the Fund's assets in fields specified by the Authority.
3. Establishing the Fund's organizational structure.
4. Approving the Fund's financial statement, budget plan, and final accounts.
5. Appointing the Fund's Director and determining their financial treatment.
6. Preparing annual reports on the Fund's activities.
7. Reviewing any issues submitted by the Competent Minister or the Authority that fall within the Fund's authorities.
Decisions of the Fund's Board of Directors shall be submitted to the Egyptian Insurance Authority within two weeks of their issuance, and these decisions shall become effective upon approval by the Authority's Board of Directors, which has the authority to amend them. The Fund shall be notified of the Authority's Board decision within thirty days from the date the documents reach it; otherwise, these decisions shall be deemed effective.

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**(Article Ten)**
The Fund's Director shall be responsible for the following:
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 paramedics within the framework of the Law's provisions.
4. Taking measures to ensure the preservation of the Fund's assets and rights against third parties, and promptly notifying the Board of Directors of any violations committed by Fund employees or counterparties, or any violations likely to harm the Fund's interests or hinder it from achieving its objectives.
5. Preparing the Fund's financial statement, budget, and final accounts at the end of each financial year, and presenting them to the Board of Directors.
6. Preparing periodic reports on the Fund's activities for presentation to the Fund's Board of Directors.
7. Preparing the annual report on the Fund's activities for presentation to the Board of Directors for review and approval.
8. Any authorities assigned to or entrusted by the Fund's Board of Directors.
The Fund's Director shall be independent and directly responsible to the Board of Directors for the Fund's activities and the performance of its employees.

**(Article Eleven)**
The Fund's resources shall consist of the following:
1. A percentage of the premium shares that insurance companies shall use to finance the Fund in accordance with Article (2) of the Law.
2. Returns on the investment of the Fund's assets.
3. Grants, donations, and subsidies that the Fund's Board of Directors decides to accept.
4. Recovered compensations in accordance with the Law's provisions.
The Fund's assets shall be allocated to meet its obligations under this System.

**(Article Twelve)**
The Fund shall have a revenue and expenditure ledger. Premiums collected from companies, returns on the investment of the Fund's assets, recovered compensations, and other miscellaneous new revenues shall be recorded on the revenue side. Paid compensations, reserves for claims under settlement, and necessities required for the Fund's management shall be recorded on the expenditure side.
Revenue surplus shall be allocated to form a reserve fund for the Fund, taking into account the claims under settlement reserve to cover reported compensation claims, and this reserve must be sufficient to cover its obligations.

**(Article Thirteen)**
The Fund's financial year shall begin on 1 July and end on 30 June of each year.

**(Article Fourteen)**
The Fund shall have a budget plan prepared four months before the beginning of the financial year, and it shall be submitted immediately upon preparation to the Authority's Board of Directors for approval.

**(Article Fifteen)**
The Fund shall prepare, no later than the end of April each year, a report on its activities containing data clarifying its financial position and other analytical data. It shall also prepare, within four months following the end of the financial year, a financial position statement, accounting system, outputs, and a report on the financial position and activities during that year, and these reports shall be submitted to the Authority's Board of Directors.

**(Article Sixteen)**
The General Administration of Insurance Account Supervision, under the Central Audit Organization sector, shall conduct the annual audit of the Fund's accounts. The Fund shall make available to the auditors any records and data they deem necessary to complete the audit.

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**(Article Seventeen)**
The Fund is obligated to maintain the necessary records for balancing its activities, specifically the following:
1. A revenue register, in which all revenues received by the Fund shall be recorded.
2. A compensation register, in which all claims submitted to the Fund shall be recorded.
3. An investment register and the return realized for each.
4. A register of the Fund's Board of Directors minutes.
5. The necessary accounting books to clarify expenditures, revenues, and the financial position.
In accordance with the generally accepted rules in the insurance practice.
6. Any other records that the Authority deems necessary to maintain.