|
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.
|
