EFSA - Egyptian Financial Supervisory Authority

03/19/2020 | Press release | Archived content

Facing repercussions of the spread of coronavirus : FRA launches an initiative with the Egyptian insurance companies to extend insurance payment grace period

• Dr. Omran: Five million policy holders benefited from the initiative
• Dr. Omran: We dealt with policyholders with the utmost goodwill to avoid cancellation of insurance policies and preserve citizens' social security.

Within the framework of Egypt's plan to confront the economic and social repercussions of the spread of coronavirus and as the current period requires the solidarity of all state institutions to limit these repercussions, in order to facilitate customers of insurance companies in line with the government's initiatives to contain the economic repercussions of the precautionary measures taken by the Egyptian state to face the effects of Coronavirus,
Dr. Mohammed Omran - FRA's Chairman announced that the Authority launched an initiative to extend insurance payment grace period other than what is stated in insurance policies to pay insurance premiums according to the type and nature of insurance policies. The initiative comes within the context of activating the role of insurance sector and the importance of interacting with the current circumstances. Five million policyholders will benefit from the initiative. In accordance with the initiative, customers can continue to benefit from insurance policies and their compensations shall be paid if the risks insured against them occur.

FRA's Chairman emphasized that according to the initiative, insurance companies licensed in the Egyptian market shall extend insurance payment grace period in a number of insurance branches:

1) Granting life insurance policyholders 60-day grace periods for payments. Customers who have passed the deadline and their policy was cancelled during the period from 1/3/2020 to 30/6/2020 may reinstate these insurance policies before 31/12/2020 without incurring any new administrative fees or delay benefits.

2) Granting medical and auto insurance policyholders 30-day grace periods from the due date of the installment. In case the granted period has ended and the policy is canceled, it may be reinstated according to the procedures followed by the companies without incurring any administrative fees or new issuance.

3) Granting corporate insurance policyholders (group life and property insurance) 30-day grace periods for payment.

The Authority calls on customers of insurance companies to use the available electronic payment methods. Insurance companies shall pay the due compensation in case the risks insured against them occur as soon as possible through multiple payment methods. Such action will enhance mutual trust between customers and insurance companies.