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General
Information
The
Insurance Supervision and Control in Egypt
Act
No. 10 of 1981 As Amended by Act No. 91 of 1995
Chapter
Fifteen
General Rules
Article
81 - Individuals and
bodies corporate may not make a contract of any direct insurance
transactions relating to their properties or liabilities in Egypt unless
the companies are subject to this Act. However, when it is impossible to
make these contracts in Egypt, the Authority may authorise effecting the
insurance with other than these companies according to the rules set by
the board or directors of the Authority.
Article
82 - No individual
or body corporate may transact in A.R.E. personally or through mediation
any activity related to the insurance or reinsurance without obtaining the
due license from the Authority and being registered at it.
Article
83 - The chairman of
the Authority and all of its staff are prohibited to take part in forming
or managing any of the companies or cooperative insurance societies
subject to this Act
Article
84 - The disputes of
which the Authority or any of the companies subject to this Act is one
party, shall be settled in the following way :
a)
A committee set up by the competent minister regarding disputes
between the Authority and
one of insurance or reinsurance companies registered
under this Act
This
committee is to be formed as follows :
- a representative of each disputing parties.
- a chancellor from the council of state nominated by the president of the
council
- an insurance expert known for his efficiency and expertise nominated by
the competent
minister.
- a specialised university professor by the consent of the university
The chairmanship of the committee shall be according to its formation
decision and decisions
on the dispute in question shall be made by the majority of votes in a
period up to three months as from the date of its formation of its
decision and it shall be final and binding to the parties. The executive
regulation specifies the procedures followed by the committee in carrying
out its work
b)
The board of the Authority in the case of a dispute between
insurance and reinsurance companies according to the measures stated in
clause (a) or this article other than any disputes settled by the Egyptian
Insurance Federation among its members.
c)
Arbitration bodies provided for in section six of Act No.60 of
1971 on the public sector organizations and affiliated companies regarding
disputes arising between the Authority or insurance and reinsurance
companies mentioned in this article and a local or central governmental
department, or general authority or a public company provided that the
parties to the dispute agreed to transfer it to arbitration.
d)
Arbitration bodies mentioned in the previous item
regarding the disputes arising between the Authority or insurance
companies mentioned in this article and individuals or bodies corporate or
the private sector, if the parties to the dispute agreed to refer it to
arbitration.
In
all cases specified in the preceding items the insureds and beneficiaries
may resort to the Authority to present their disputes with the insurers
without violating their right to refer to the court.
Article
85 - Each insurance
company shall pay to the Authority an annual fee to meet the costs of
supervision and control of all business transacted in Egypt on the base of
a percentage of the total direct premiums due to the company from the
policyholders of the previous financial year as follows
1-
Two and a half per mill of the insurance business specified in the first
item of the first
paragraph of article 1 of this Act.
2 - Six per mill of the insurance business specified in the second item of
the first paragraph of
the above article.
The
company may not collect this fee from the policyholders or the insureds in
excess of the two mentioned rate.
The
company must pay all these fees within a month from thc date of the
approval of the general meeting of the company to its balance sheet in the
case of delay of payment, a fine shall be payable to the Authority
accounted on the base of the rate of discount published by the Central
Bank of Egypt.
The
amount of these fees will be put into a separate account of the Authority
of which expenses will be allocated to aspects of insurance control and
supervision.
Article
86 - Bodies under
the provisions of this Act shall furnish the Authority with full details
of tariffs of general insurance, rates of life assurance, terms and forms
of insurance policies whenever any alteration arises to be checked in the
light of the necessary studies to ensure the fair rate. These tariffs,
rates, terms or forms shall not be valid unless approved by the Authority.
Lapse of thirty days as from informing the Authority without being decided
on shall be considered as an approval decision.
The
Authority shall periodically monitor the tariffs and rates applied to the
companies in the light of the actual results to ensure the satisfaction of
the fair rate and the companies shall be subject to the alterations of the
Authority in this regard.
In
respect of the insurance classes specified in article I, second item
(2,3,4,6,7,8) of this Act, their tariffs and rates need not the
Authority's approval to be in force, but only it shall be sufficient to
notify the Authority. The provision of the above paragraph shall be
applied to all other classes of insurance after the lapse of five years
from the date of this Act being in force.
Article
87 - The company may
not publish any of the data it should present according to the provisions
of the Act unless they are identical to the data presented to the
Authority. Identical copies of the original data may be published.
Article
88 - The owner of
any interest approved by the Authority may sight the documents and data
presented according to the Act or to obtain copies, certificates, extracts
of them or of the decisions made by the Authority or the registers
specified in the Act except the technical bases of the insurance rates
after paying the due fee.
Insurance
companies shall allow the policyholders to sight the data pertaining to
their policies, or give them at their request a copy of it, after payment
of the due fee.
The
amount of fees payable in accordance with this article will be fixed by
the attached schedule.
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