Experts Calls For Extending Motor Insurance Regulation For Another Term

Insurance experts stressed the importance of extending the implementation of the Motor Insurance regulation for another term. The regulation, issued by the Motor Insurance Committee, states that the customer shall incur either 25% of the value of compensation or a 50% increase in the charges. Customers preferred more to incur 25% of compensations rather than incurring more charges, experts said.

Ahmed Aboul Enein, the head of motor car insurance committee at the Insurance Federation of Egypt and the head of car insurance department at Misr Insurance Company, said such regulation has posted positive impact on the sector’s financial results in the last period.

Such positive impact did not appear clearly due to the high rate of car theft which was increased 10-fold in the last period, Aboul Enein noted, adding that about 130 cars insured by Misr Insurance Company are stolen monthly.

The Committee awaits the final results of the analytical studies made to determine the effects of such regulation on the sector so as to decide whether to extend such regulation for another term or not, Aboul Enein concluded.