EFSA Says EGP5.5 bln Compensations of Motor Sector Insurance Companies in 3Years

Mohamed Maait ,Deputy Chairman of the Board of Egyptian Financial Supervisory Authority (EFSA) said the insurance companies have paid EGP5.5 billion during the last three years as the compensations of motor accidents.

Maait explained in a statement that motor insurance is the closest branches of insurance that felt by the citizens, especially in light of the crisis that we are experiencing traffic daily and collisions that result in damage of cars, and death or injury cases caused to them.

Maait added that the total compensations that paid by the company in compulsory vehicle  insurance branch within the recent three years reached around EGP2.9 billion against the total collective premiums for the compulsory vehicle insurance which up EGP1.94 billion.

He asserted that insurance companies continue to underwriting of the branches according to its social responsibility in providing security for citizens despite the incur losses that fall by 233% in 2011 ,155.1% in 2012 and 134.3% in the last year.

He added that the value of supplementary car insurance sector reached around EGP2.6 billion in the last three years, attaining 61% losses in 2011, 68.7% in 2012 and 67.5% in 2013.

The reason of losses due to the increase in cases of car thefts, where the increased incidents of car theft in 2013, as 2198 stolen cars in  compared to 1974 stolen car in 2012.