The resolution establishes comprehensive controls to safeguard customer rights, enhance transparency, and raise governance standards in the insurance market. This strategic step aims to boost customer trust, support financial and insurance inclusion, and elevate service quality.
The new rules apply broadly to all insurance companies, including
Takaful (Islamic), medical, and microinsurance, medical insurance program
managers, government and private insurance funds, and related entities such as
actuarial firms, consultants, loss adjusters, and brokers.
The resolution mandates all sector entities to enforce the
highest standards of disclosure and transparency. This requires presenting
information about products and services in clear, simple language, avoiding
complex technical jargon unless essential, and providing a full explanation
before the contract is finalized.
Insurance documents must be precise and non-misleading,
written in a clear, legible font. They must detail all contractual terms,
including the insured amount, deductibles (if any), and claim procedures.
Companies are obliged to provide customers with all essential
terms and conditions, including the company's name, policy type, coverages,
exclusions, premium payment system, deadlines, and rules for late payment.
Companies must also prepare explanatory materials like brochures, summaries, or
video clips in simple language, ensuring they contain no misleading
advertisements or inaccurate information.
The resolution obliges companies and entities in the
insurance sector to establish an internal department or designate a specialized
official to study complaints submitted by customers. This aims to activate
self-monitoring and address complaints seriously and objectively immediately
upon receipt, before they are escalated to the FRA.
Companies are also required to disclose in clear, prominent
lettering on all contracts, correspondence, advertisements, and publications
directed to customers that the company is subject to the FRA's supervision and
control, along with stating the license number, commercial registry, and
contact details for the internal complaints department, including a dedicated
phone number. Customers must be informed in writing of their right to approach
the FRA if they do not accept the company's proposed settlement.
The resolution requires verifying a genuine insurable
interest for beneficiaries, especially in high-value policies. Policies must
contain clear clauses on conditions for cancellation, surrender, or forfeiture
of the insured amount. Customers must also have the option to resort to the Egyptian
Center for Optional Arbitration to settle disputes.
Regarding investment policies, companies are prohibited from
deducting from balances due to non-payment unless the client is notified and
offered alternatives. No in-force policy may be cancelled or surrendered
without the insured's request or per policy terms, with reasons clarified. A
company can cancel a policy for non-payment, but the insured retains the right
to a pro-rata refund of premiums for the unexpired period.
For after-sales services, companies must ensure service
quality and continuity, and provide timely notification of any policy or
company data amendments. Such notifications must be clear, accurate, and detail
the impact on policyholder rights. No amendment is permitted without the prior
written consent of the insured and FRA approval.
The resolution mandates all companies and entities to
establish a written and publicly announced internal charter detailing the
procedures to be followed for handling complaints, while providing and
disclosing multiple, announced means of communication in all correspondence and
publications to all customers.
Companies must maintain a special complaints register
detailing the submission date, incident summary, actions, and decisions,
enabling the FRA to monitor the efficiency of their resolution systems.
Entities must submit periodic reports to the FRA, quarterly
for insurance companies, and semi-annually for others, covering the number,
classification, causes, and resolution outcomes of complaints, along with an
analysis of recurring issues and corrective measures taken.
The resolution sets clear conditions for complaints
submitted directly to the FRA, primarily requiring proof that the complaint was
first raised with the company and remains unresolved, along with the completion
of a dedicated form.
Finally, a specialized committee chaired by the FRA Vice Chairman will be formed to review and decide on customer protection disputes. Its decisions will be final and issued within 30 days of receiving complete documentation, ensuring swift settlement.