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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 Four
The Egyptian Insurance Supervisory Authority
Article
6 - A public Authority called the Egyptian
Insurance Supervisory Authority is to be set up as an independent body
corporate subordinate to the competent minister with its headquarters in
Cairo. This Authority shall have the competence to supervise and control
the insurance activity in Egypt whether at the establishment, during
transaction or at the termination of the business. The Authority in
particular aims at the implementation of the following objectives
1- to protect
the rights of insurance policyholders, the beneficiaries and third
parties.
2 - to secure the achievement of the economic and social objectives of
insurance activity and
preserving the national savings and the foreign
currency resources from flowing abroad.
3.- to secure the soundness of the financial positions of the Insurance
market units,
coordinating among them and preventing any
conflict between them.
4 - to participate in developing insurance awareness in the country
5 - to support the insurance market and develop it.
6- to strengthen the ties of co-operation and integration with the other
control and supervisory
authorities at the Arab, African, and world level.
7 - to promote the insurance professions and to contribute effectively to
the availability of the
expertise.
All this shall be within the framework of the Act as well as the
objectives and policies decided by the Supreme Council of Insurance.
Article
7 - The Authority is concerned with the
implementation of the provisions of this Act;
in particular:
First
: The Supervision and control of individuals and bodies Corporate subject
to the
provisions of this Act
Second
: The supervision and control of the Private Insurance
Funds within their Act.
Third
: Studying the legislation related to the insurance activity and
expressing its view in any
proposed decision or pursuit of the relevant draft laws to this activity.
Fourth :
Representing the. State at the international insurance and reinsurance
bodies and
companies in which the government decides to participate.
Fifth
: Supporting the insurance studies and participating in their finance to
serve the
insurance market.
Sixth :
Preparing and publishing the statistical data, reports and studies
pertaining to the
activities of the Egyptian insurance market and its units.
Seventh: Taking all the
required measures to follow-up the implementation of the provisions
of this Act and its regulations
Article
8 - The Authority shall have a board of directors formed
as follows :
- The Chairman of the Authority. - Chairman
- The Deputy Chairman of the Authority. - Deputy Chairman
- One of the actuaries registered in the Authority's registers nominated
by the competent
minister. - Member
- One of the deputies of chairman of the Council of State nominated by the
Council. - Member
- Seven members experienced in the field of insurance and reinsurance and
related activities
nominated by a decree issued by the Prime Minister based on
the proposal of the competent
minister, including among them one of the insurance
professors in the Egyptian Universities.
Article
9 - The board of directors of the Authority
is the competent power to run its affairs and has the right to take
whatever decisions to achieve its objectives in particular :
1- considering
the topics required by this Act or any other act to be submitted to the
board,
beside considering the topics Stipulated by the
Private Insurance Funds Act No.54 of 1975
to be submitted to the board.
2 - approving the organizational structure of the Authority.
3 - issuing the Systems and regulations concerning its staff, their
salaries, wages, remuneration,
benefits, special allowances, fixing their per
diem rates for local and overseas missions, so
as to keep them on an equal footing with what is
decided for the staff of the public
insurance companies.
4 - issuing the financial administrative and technical regulations of the
authority and other
organizing decisions without being bound by the
regulations and rules specified in the act
and regulations applied to the government and the
public sector.
5 - approving the budget, the balance sheet and the annual accounts of the
authority.
6 - considering any matters to be presented through the proposal of the
competent minister or
the chairman of the board in compliance
with the authority's powers.
The board is entitled to delegate some of its functions to a committee
comprising of its members, or to the chairman of the board or his deputy,
it may also delegate one of his members to do a specific assignment.
Article
10 - The decisions of the board of
directors of the Authority shall be valid without being approved by a
higher authority with the exception of the following decisions which have
to be approved by the competent minister.
1 - The
decisions related to the general policy or the insurance legislations.
2 - The decisions of determining other classes of insurance.
3 - The decisions concerning the quotas by which the companies are obliged
to cede from their
transactions to the Egyptian Reinsurance
companies and the rates or commissions paid by
the companies of these cessions
4 - The decision of the dissolution of the board of directors of a company
according to article.
59 (i) of this Act.
The chairman
shall notify the competent minister of the decisions that need his
endorsement within two weeks from the date of issue, and they shall be
valid by his sanction and he shall have the power to amend them.
The minister
shall notify the Authority of the decision within 30 days from the date of
receiving the documents otherwise these resolutions will be deemed final
and valid.
Article
11 - The chairman of the board shall assume
the management of the Authority' affairs, implement the board's decisions
and represent the Authority in its relations with others and in courts.
Article
12 - The resources of the Authority are :
1- The fees of
supervision, control, registration and inspection stipulated in this Act.
2 - Subsidies allocated to the Authority by the state and the loans it
acquires.
3 - Any other amounts or money as a result of the Authority's activities
or for the transactions
and services rendered by it. Any surplus of the
Authority's resources shall be transferred to
the state treasury.
Article
13- The Authority shall have an independent
budget prepared according to the rules applied to the companies. The
relation between this budget and the budget of the state is confined to
the surplus that will be transferred to the treasury and any loans and
contributions decided for this budget.
Article
14 - The annual auditing of the Authority's
accounts shall be assigned to the General Department of Auditing Insurance
Sector's Accounts at the Central Organization of accounting. The Authority
shall put all the necessary records, documents and data at the disposal of
the auditors.
Article
15 - The Authority shall prepare within
four months after the end of the financial year the statement of the
financial position, revenues and expenditures accounts of the Authority
according to the rules applied to the companies, in addition to a report
on the financial position of the Authority and its activity during that
year to be submitted to the board of directors.
Article
16 - The Authority shall prepare an annual
book to be published on the insurance activity in the Arab Republic of
Egypt, the application of the Act and the status of the establishments
subjected to it.
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