Insurance Federation of Egypt
Role & Mission
Insurance Federation of Egypt (established at 1953) is a consortium of insurance companies, reinsurance and insurance associations licensed to operate in the Arab Republic of Egypt and the Federation legal personality, a non-profit, based on 10 Iran St. Dokki district in the governorate of Giza.
It aims to raise the level of the insurance industry and insurance professions associated with them and the organization of competition and to foster scientific and cultural ties and social relations between companies and its member associations and the General Authority for financial control and other government agencies and NGOs on active insurance at home and abroad, as well as examine the technical basis of price and compensation.
Federation membership mandatory for all insurance companies, reinsurance and insurance associations under the Law of the servision and control of insurance.
The resources of the Federation membership fees for EU membership and annual subscriptions, and return on investment of Federation funds in the event of insufficient resources, the former members are committed to cover the annual deficit.
Devices
The Federation shall exercise its powers through the following devices:
General Assembly
The highest authority of the Federation and meets once a year at least.
Federation Board of Directors
It consists of seven members from among the heads of the departments or their representatives or members are assigned to insurance companies and associations of members of the Federation to take into account the relative balance between the companies and associations of persons engaged in insurance operations and the composition of funds, and those engaged in property and casualty insurance
Executive Boards
There are two instances, first insurance companies and associations that engage in Personal insurance and processes of construction funds, and the second insurance companies and associations, which engaged in property and casualty insurance.
Technical Committees
Each executive council to form a number of technical committees to assist him in carrying out its duties, in the formation of these committees of five members at least seven more selected by the Executive Boards of the candidates by companies and insurance associations members in accordance with the rules and standards established by the Federation Board of Directors, the Board Executive Chairman Committee and his deputy from among themselves.
General Secretariat
The Federation has a general secretariat headed by Secretary-General with a full-time administrative efficiency and expertise of insurance, assisted by Assistant Secretary-General or more.
Companies of the Insurance Federation of Egypt
– Misr Insurance company
– Misr Life Insurance company
– Suez Canal insurance company
– Suez Canal Life insurance company
– Mohandes insurance company
– Delta Insurance company
– Chartis Egypt insurance company
– Arab Misr insurance Gro
– Metlife Alico Company
– Co-operative insurance society for small enterprises
– Commercial international life insurance company
– ACE insurance company (Non- life)
– ACE Life insurance company
– Royal insurance company
– Allianz insurance company Egypt (Non-life)
– Allianz life assurance company
– Egyptian Saudi insurance house company
– NSGB life insurance company
– Ba international insurance company
– Egyptian Takaful insurance company (Non- life)
– Egyptian Takaful company- life
– Wethaq for Takaful insurance company
– Iskan insurance company
– Arope Insurance company – life
– Arop property & Libility insurance company
– Nile family Takaful company
– Nile General Takaful company
– Arab orient Takaful insurance company
Basic Regulations
Part 1
Establishment of the Federation Its Objectives and Means OF Fulfillment
Article 1:
In the Arab Republic of Egypt, the Insurance Federation of Egypt was established between Insurance and Reinsurance companies and Insurance Societies authorized to transact insurance business in Egypt.
This Federation is a corporate body not aiming at realizing profit. It is situated in Cairo.
Article 2:
The Federation aims at realizing the following purposes:
1. Promoting the level of the insurance industry, and insurance professions connected therewith, dating and affirming insurance concepts and norms of accurate insurance business besides putting down contractual agreements and ethics of insurance profession.
2. Exchanging views in joint matters for controlling or regulating the competition between the Federation`s members within an atmosphere of market economy.
3. Promoting scientific, educational and social relations between Insurance, Reinsurance companies, and Insurance Societies operating in Egypt, besides similar bodies abroad.
4. Strengthening and coordinating the cooperation between the Federation and the Egyptian General Insurance Organization with a view to realizing the interests of the national economy.
5. Creating and strengthening the ties between the Federation and other governmental and non- governmental bodies concerned with insurance activities in Egypt and Abroad.
6. Studying the technical bases of insurance rating and settlement of claims.
Article 3:
The Federation is entitled to use all possible means to achieve its objectives especially in respect of the following matters.
A. Putting down the technical bases for the assessment and rating of risks.
B. Prevention and minimization of losses.
C. Strengthening and developing the Egyptian Insurance Market.
D. Regulating competition aiming at avoiding conflict between members.
E. Enhancing insurance awareness and consciousness and level of insurance culture.
Part 2
Federation`s Membership
Article 4:
An insurance company or reinsurance company or an insurance society subject to the provisions of law No.10 relating to servision and control on insurance business in Egypt has to join the Federation as a member by submitting a proposal to the Chairman of the Federation`s council accompanied by :
A. The documents evidencing the registration and authorization for transacting insurance activities.
B. A statement of board members who are authorized to represent their company in all the Federation bodies.
C. The document testifying that membership fees have been paid.
Article 5:
The said proposal is being submitted to the Federation`s Council in its first meeting accompanied by all the documents referred to in the previous article for being confirmed. The chairman of the Federation`s council has to notify the insurance company or society of the decision adopted within fifteen days from its issuance by registered mail.
Part 3
Rights of members,
their duties and non permissible actions
Article 6:
A member is permitted to enjoy the benefits of services offered by the Federation in various channels particularly in:
A. Acquiring the information, statistics, reports and studies that are issued by the Federation.
B. Contribute in the insurance pools that are formed by the Federation between its members.
C. Nominating the representatives in the various organizations of the Federation.
D. Benefiting from the Federation`s activities in the field of providing insurance experts and will trained employees in insurance technicalities.
E. Obtain the benefits of the Federation`s programs in the field of loss prevention and loss minimization for various kinds of insurance.
Article 7:
The Federation`s member is bound to implement all the Federation`s regulations and its decisions in respect of the following matters:
A. Remitting the annual membership subscription fixed by the General Assembly unless he joins the Federation during the financial year when he has to pay a proportional amount of the full subscription equivalent to the period from the date of being a member until the expiry of the financial year plus the membership fees.
B. Execute all the decisions of the Federation`s Council regarding the required regulations which limit the relationship between members and regulating the competition and coordination between them in respect of big insurance risks or risks of special nature besides increasing the market acceptance capacity.
Article 8:
It is inadmissible for members to performing any of the following actions:
A. Any action that would cause any financial or moral harm to the Federation.
B. Committing any breach to the basic regulations of the Federation or to the General Assembly`s decisions or the Federation`s Council.
C. Deviating from the covenants and ethical business rules ratified by the Federation`s Council which in turn may cause any injury to the insurance profession or any member.
Part 4
The Financial year- Federation`s Revenues
Financial Expenditures
Article 9:
The financial year of the Federation begins on 1st of July and terminates on 30th June in every year.
Article 10:
The Federation`s financial revenues are formed from
1. Membership subscription fees.
2. Subscription annual fees paid by members.
3. Revenues of investments of the Federation`s funds.
4. Any other revenues approved by the Federation`s Council.
In case the above-mentioned revenues are insufficient members are committed to cover the annual deficit each in proportion to his subscription and according to the Federation Council`s decision.
Article 11:
The Federation`s revenues are utilized to be spent on realizing its objectives in accordance with the financial regulations of the Federation and the rules laid down by the Federation`s Council.
The Federation`s funds are deposited in its name in any bank situated in U.A.R
Part 5
The Federation Organizations
Article 12:
The Federation exercises its activities through the following bodies:
1. The General Assembly.
2. The Federation`s Council – The Chairman
3. The Executive Councils.
4. The Technical Committees.
5. The General Secretariat.
First – The General Assembly
Article 13:
The General Assembly is the highest authority of the Federation. It is formed from chairmans, vice chairmans or managing directors who are representing the Federation`s members.
The meetings are only open for members who have fulfilled their financed obligations to the date of the General Assembly`s meeting in accordance to the Federation`s Regulations.
The General Assembly`s meeting is presided over by The Chairman of the Federation`s Council or by the vice chairman in case of the chairman`s absence.
A representative from the Egyptian General Insurance Servisory Authority is invited to attend the meetings.
The secretary general of the Federation is delegated To act as the secretary of the General Assembly`s meetings but both have no accountable vote.
Article 14:
The General Assembly holds its meeting at the request of:
1. An invitation from the Federation`s Council.
2. A request submitted made by half of the members of the Federation`s Council.
The meeting of the General Assembly will be valid in case at least two thirds of the members are present otherwise the meeting is adjourned for one hour after which the meeting will be effective provided at least half of the eligible members are attending.
Article 15:
The General Assembly is required to convene at least once every year during the three months following the expiry of the financial year.
The invitation is being addressed to all members at least thirty days before the meeting date enclosed with which the meeting`s agenda and a statement of the names of members who are eligible to attend the General Assembly.
It is in dismissible to look into matters that are not included in the agenda with the exception of proposals referred by members to the General Secretariat at least ten days before the date of the meeting provided members are notified of these proposals at least ten days before the meeting.
Article 16:
A member in the Federation is authorized to delegate on his behalf another member to attend the meeting of the General Assembly in writing signed by his legal representative provided the chairman of the Federation or his deputy is notified before the opening of the meeting.
It is not admitted for a member to be delegated on behalf of more than one member to attend the General Assembly`s sessions.
Article 17:
The General Assembly of the Federation is entrusted to perform the following duties:
1. Approving the necessary policies for achieving the Federation`s objectives.
2. Laying down general rules including concepts of cooperation between members to secure healthy insurance practice in the market and stability of positions within an atmosphere of soft competition.
3. Establishing disciplines for professional behavior to members aiming at achieving norm competition and protection for clients dealing with them.
4. Ratifying the organizational structure of the Federation`s staff.
5. Electing the Federation`s chairman of the Council, his deputy and members.
6. Confirming the alterations made on the basic regulations of the Federation pending its ratification by the authority concerned in conformity with the law.
7. Fixing the amount of membership fees payable by who wishes to join the Federation and the annual subscription for members.
8. Confining the annual budget of the Federation and its balance sheet, its annual accounts, and the annual report prepared on its activities.
9. Appointing the auditor of accounts and fixing his fees.
Article 18:
The General Assembly`s decisions are issued by the majority of votes of attendants. In case of equal votes the party from which the chairman belongs will succeed.
Decisions relating to the amendments of the basic regulations are issued by a majority of two thirds of total number of members.
Article 19:
The General Assembly`s decisions and numbers of votes sporting this decision are recorded in a book containing all the minutes of the General Assembly`s meetings.
The minutes are signed by the Federation`s chairman or his deputy in case of his absence and the Secretary General.
Names of insurance and reinsurance companies, as well as names at insurance societies who are designated as members of the General Assembly are also registered in this book.
Besides names of all attendants and their capacities.
Second – The Federation`s Council-The Chairman
1. The Federation`s Council
Article 20:
The Federation has its own Council elected by the General Assembly and formed as follows:
The Chairman, his deputy, one of them represents insurance companies and insurance societies transacting personal and, capital redemption insurance business while the other represents companies and societies transacting property and liability insurances.
Seven members from chairmans, deputy chairmans, or managing directors from insurance companies and societies who are members in the Federation provided there should be a balanced proportion between companies and societies transacting personal and capital redemption insurances and others transacting property and liabilities insurances.
Article 21:
The Federation`s Council opens the door for applying to membership in the Council at least thirty days before the date of the General Assembly`s meeting and for only fifteen days.
Any member in the Federation who wishes to nominate his representative has to submit a written proposal to the general secretariat within the prescribed period therefor enclosed with which a statement including the name of his representative, age , nationality , qualifications and his residence.
Article 22:
The period of membership is two years starting from the date of election? The period is renewable for only one more period.
The membership in the Federation`s Council is terminated when the relationship between the Council`s member and the company or the society he represents is discontinued or at the request of the member himself.
Also the membership shall be discontinued if the member`s representative does not attend the council more than half the number of the council`s sessions during the year without any acceptable excuse.
Article 23:
If a place of one of the elected members becomes vacant, he is replaced by the member subsequent to him according to the number of votes taking into consideration the proportional balancing rule in according to article20.
The period for the new member shall be a continuation of the previous member`s period.
If the chairman`s post becomes vacant or his deputy the general assembly will elect another chairman, or deputy for the rest of the Council`s period.
Article 24:
The Council will convene at least once every three months in response to the chairman`s invitation or his deputy in case of the chairman`s absence or at the request of half the numbers of members.
The Council`s meeting will be valid if least two thirds of its members are present.
The decisions of the council should be approved by the majority of votes attending the meeting.
In case of two equal party votes, the party to whom the chairman belongs will succeed.
Delegations by members of the council are admissible provided the delegation is in writing and conditional on that the number of votes of the delegated members attending does not exceed one third of the whole number of votes attending
t is not permissible for one member to be delegated for more than member.
The Secretary General is entitled to attend the meetings of the council with no right to vote.
Article 25:
The Federation`s Council possesses full authorities for managing the Federation and performing all the necessary actions to fulfill its objectives except any actions that are considered within the duties of the General Assembly of the Federation.
Article 26:
The Federation`s Council is responsible for performing the following duties:
1. Laying down the necessary steps for the implementation of the general policy towards achieving the Federation`s objectives in compliance with the basic regulations and decisions of the General Assembly also pursuing the execution of this policy.
2. Approving the work plan for the two executive Councils.
3. Giving its opinion on the legislations organizing the insurance activity or on its impact thereon also may suggest to develop these legislations to adapt the circumstances and conditions of the Egyptian Market and what is going in the foreign insurance markets.
4. Contributing in developing the future strategies for the insurance sector.
5. Exchanging experiences, knowledge and ideas with similar Federation`s and governmental and non- governmental bodies in Egypt and abroad aiming at pushing forward the insurance industry and doing whatever is required to achieve this including holding seminars and conferences either locally or abroad and contributing therein.
6. Looking into all matters relating to insurance pools and cooperating bodies.
7. Giving its approval on joining the international organizations and Federations, contributing in conference, seminars and venues that are beneficial to our Federation and help to realize its targets.
8. Establishing insurance information centers and analyzing what is connected with the Egyptian Market by publishing all the information and statistics of the market.
9. Sporting the researches that are needed to the market and contributing to its cost.
10. Fixing the monetary amount paid in respect of work being done for the benefit of the Federation or at its request.
11. Inviting the General Assembly to convene.
12. Approving the financial, managerial regulations of the Federation besides the rules relating to its employees.
13. Appointing the Federation`s Secretary General and his assistants.
14. Discussing the auditor`s report and answer any remarks included therein before being submitted to the General Assembly.
15. Approving the Federation`s budget, the balance sheet and the annual report regarding the Federation`s activity before being submitted to the General Assembly.
16. Determine the investment policy and means of benefiting from the Federation`s funds and from main channels of investment.
17. Enhancing insurance awareness and encouraging researches and attempts that helps to achieve this end.
18. Any other matters the Council`s Chairman may ask to be referred to the Council.
2. Chairman of the Federation
Article 27:
The Chairman is responsible for the following duties:
1. Representing the Federation before the courts of law and in its relations with others.
2. Inviting the Federation`s Council to hold a meeting.
3. Presiding over the Council`s sessions and special committees derived from the Council and are entitled to invite these committees to convene.
4. Approving both the General Assembly`s Agenda and the Council and sign with the Secretary General on the minutes of the Council`s sessions besides servising the implementation of all decisions.
5. Signing on all contracts and agreements agreed by the Council and is entitled to delegate his deputy or one of the Council`s members to do so.
6. Following the execution of all the Chairman`s decisions and servising on periodicals issued in the name of the Federation which may be considered to be as a tool for promoting local and international insurance culture and experience.
In addition following the judicial changes which have an impact on the insurance industry.
In the absence of the Council`s Chairman his deputy takes over according to the Federation`s regulations and has all the Chairman`s responsibilities.
Third – Executive Councils
Article 28:
The Federation has two executive Councils one for companies and insurance societies transacting personal and capital redemption insurances while the second Council is for companies and insurance societies transacting property and liabilities insurances.
Each Council selects its Chairman and its deputy for two years renewable for only another period.
Article 29:
The executive Council convenes at least once every two months according to the Chairman`s invitation or his deputy in case of his absence or at the request of fifty percent of the total number of the Council.
The Council`s meeting shall be valid if at least two thirds of the members are present.
The Council`s decisions shall take its effect by the majority of votes of members attending. If votes are split into two parts the part to which the Chairman belongs shall succeed.
Delegation between the Council`s members for attending sessions is admittable provided the delegation is in writing and votes of delegated members do not exceed one third of total votes.
Also it is not permissible for a member to be delegated on behalf of more than one member.
The Secretary General attends the Executive Council`s meeting but has no accountable vote.
Article 30:
Each Executive Council is in charge of implementing the necessary policies and programs to fulfill the Federation`s objectives stipulated in the basic regulations in accordance with the annual work plan prepared by the Council and stinted to the Federation`s Council for ratification.
The Executive Council in particular is entitled to:
1. Increase the number of beneficiaries from insurance services aiming at providing a comprehensive insurance protection for the national wealth and for individuals of the society.
2. Developing the technical cooperation between members through exchanging information and experience besides solving the problems that may arise between them.
3. Establishing joint insurance pools particularly in respect of risks of special nature.
4. Protecting the interests of the Federation`s members especially with regard to settlement of full premiums due by the clients before transferring his transactions to another member of the Federation.
5. Proposing information data for clients who aught to be treated cautiously by member companies and societies for the following reasons.
a. Clients who have transferred their insurances from one company or a society to another company or society to escape from payment of their due premiums.
b. Clients who have committed fraudulent actions or misconduct with companies or societies members of the Federation either during the period of contracting or during the period of settlement of claims.
c. Clients who have been previously rejected by one company or society due to subjective reasons.
6. Following the special studies concerning loss prevention and minimization of losses in various branches of insurance cooperating with concerned bodies and insurance markets that are experienced in this field.
7. Contributing in preparing the Federation`s budget pending its submission to the Federation`s Council and before being discussed and ratified by the General Assembly.
8. The formation of the technical committees which are considered to be of necessity for the better conduct of work and achieving the Council`s targets also, preparing the work plan for the committees and following its work in addition to looking into the quarterly reports that are submitted by the Secretary General regarding the topics that were discussed by the Committees.
9. Looking into all topics pertaining to Council members and other matters referred to the committees from the Federation`s Council or it`s Chairman.
Fourth – Technical Committees
Article 31:
Every Executive Council forms a number of technical committees to assist it in performing its duties.
The Committees are formed from at least five members but not more than seven members.
They are selected by the Executive Council from nominations given by companies and insurance societies members in the Federation according to the regulations laid down by the Federation`s Council.
The Chairman of the Technical Committee and his deputy are appointed by the Executive Council.
The Secretary of the Committee chosen from among the responsible employees in the Federation and nominated by the Federation`s Secretary General but has no accountable vote.
Article 32:
The period of membership in the Technical Committees is two years renewable once for only one another period.
Article 33:
The meeting of the Committees shall be valid if two thirds of its total members are present.
The Committee`s recommendations are issued by a majority of votes for members attending the meeting unless there are two equal parts when the one part to which the Committee`s Chairman belongs shall succeed.
The Committee convenes if invited by the Chairman or his deputy in case of his absence or at the request of half the number of all members.
The membership will be withdrawn from the member who fails to attend three successive meetings without any acceptable excuse or six separate meetings during the year.
In this case the Chairman of the Committee will ask the Executive Council to nominate another member to replace the member whose membership has been withdrawn.
Article 34:
Each Committee is entrusted to implement the necessary policies and programs to achieve the Federation`s objectives stipulated in these regulations according to what is required by the Executive Council.
The Federation`s Secretary General is responsible to follow the work of the different Committees and prepare a quarterly report about its activities to be submitted to the Federation`s Council.
Fifth – General Secretariat
Article 35:
The Federation has a general secretariat headed by a secretary general selected from those employees who enjoy management efficiency and insurance expertise.
He has one or two assistants.
The Secretary General is responsible for:
1. Preparing the agenda of the General Assembly, the Federation`s Council, the two Executive Councils and the Technical Committees.
2. Following the Technical Committees activities and its recommendations.
3. Collecting, analyzing and publishing the information concerning the Egyptian Insurance Market as well as the International Insurance Markets
4. Preparing the Federation`s annual report and studies on Egyptian Insurance Market and companies operating therein.
5. Implementing the Federation`s program in respect of developing and promoting the technical experienced cadres in the market.
6. Implementing the programs and policies that are decided by the Federation.
7. Dealing with the financial and managerial work of the Federation.
8. Preparing the Federation`s budget and submitting it the Federation`s Council to be reviewed and agreed on before being ratified by the General Assembly within a maximum of three months before the beginning of the financial year .
9. Preparing the balance sheet and closing accounts within a maximum period of six months from the expiry of the financial year for submission to the Federation`s Council for approval before being ratified by the General Assembly thereafter.
10. Preparing the regulations, decisions and the necessary systems for acquiring better work performance in the Federation pending its ratification by the concerned authority in the Federation.
11. Examining other matters referred to the General.
Secretariat from of the General Assembly or from the Federation`s Council or its Chairman or from the Executive Councils.
Part 6
The Federation`s General Auditor
Article 36:
The General Auditor is concerned with:
1. Revising the financial systems that guarantee better execution of work. He is also responsible for the inventory operations and examining the Federation`s accounts at the end of the financial year then he submits his report in this respect to the General Assembly.
2. Present a report on the balance sheet and closing accounts to the General Assembly at least one month before the date of its meeting including his remarks thereon The Auditor attends the meeting of the General Assembly held for discussing this report.
The Auditor for the sake of performing his duties is entitled to look into the Federation`s books of accounts and its documents at any time and has the right to ask for all the statements and statistics which are presumed necessary to exercise his duties.
Besides he is entitled to check the assets and liabilities of the Federation.
Part 7
Penalties imposed on Members breaching their Duties
Article 37:
If a member of the Federation breached any of the duties stipulated in article 8 of these regulations the matter is raised to the Federation`s Council by a meme from the Chairman or by proposal from a member company including the allegations against the breaching member to put him under an enquiry by a Committee formed by the Council.
The Committee`s report is raised to the Federation`s Council within one month from the date of receipt of all the papers and documents by the Committee.
If breach is confirmed and proved against the respondent, a voting is called by the Council to suggest one of the following penalties to be imposed on the respondent taking into consideration the magnitude of the breach.
1. Notify in writing the breached member of the proved breaches Committee by him and the necessity of abiding by the Federation`s regulations and its decisions and abstain from repeating any more similar actions.
2. Depriving the breached member from contributing in insurance transactions on big projects.
3. Imposing a financial penalty on him ranging from a minimum of LE 10,000 and a maximum of LE 100,000.
Article 38:
The breached member of the Federation is being notified of the penalty imposed on him by a registered mail addressed to him by the Chairman of the Federation.
The breached member is allowed to complain from this penalty to the Federation`s Council during the thirty days following his receipt of the notification.
The Council has to decide on this complaint within the sixty days following the date of the complaint.
The Council`s decision in this matter is final.
Article 39:
The membership of the respondent is suspended by a decision given by the Council if the member abstained from settling his financial obligations for a period of three months from the due payment date.
He is deprived from his rights to attend the Federation`s Council meetings the Executive Council meetings and the Technical Committee`s meetings during the whole period of membership suspension.
