Egypt adds unfair dismissal cover to expatriates’ insurance scheme

Egypt will expand its voluntary insurance scheme for citizens living and working abroad to include protection against unfair dismissal under a cooperation agreement signed on Thursday between the Financial Regulatory Authority (FRA) and the Ministry of Foreign Affairs.

The new benefit will take effect on 1 August and will be available through the programme’s online platform, the FRA said in a statement.

The agreement forms part of government efforts to strengthen financial protection for Egyptians abroad by expanding benefits under the voluntary insurance policy, which already covers death and permanent disability.

Under the revised policy, insured workers will be eligible for compensation of up to 100,000 Egyptian pounds ($2016) if they are unfairly dismissed and forced to return to Egypt for reasons beyond their control, including large-scale repatriations resulting from political or economic developments.

The policy also provides compensation of 250,000 pounds for permanent total disability resulting from an accident, as well as benefits for natural or accidental death, including the cost of repatriating the deceased’s body to Egypt. The annual premium will remain unchanged at 400 pounds.

“The protocol reflects the state’s commitment to providing broader insurance protection for Egyptians abroad and their families while responding to evolving labour market challenges,” FRA Chairman Islam Azzam said.

Azzam said the latest expansion builds on reforms introduced last year, when the maximum insurance benefit was raised to 250,000 pounds from 100,000 pounds. About 448,000 policies have since been issued, generating 110 million pounds in premiums, according to the Egyptian Travel Insurance Pool.

He said the unfair dismissal benefit was introduced following recommendations from the Sixth Conference for Egyptians Abroad and developed in coordination with the Ministry of Foreign Affairs and the Egyptian Travel Insurance Pool to ensure broader protection and maintain the scheme’s financial sustainability.

Deputy Foreign Minister Nabil Habashi said the agreement reflected the government’s continued efforts to strengthen support for Egyptian expatriates and deepen engagement with communities abroad.

“The expanded insurance policy responds directly to requests from Egyptians working overseas and marks another step in the state’s efforts to protect its citizens abroad,” Habashi said.

Under the agreement, the Foreign Ministry will promote the insurance programme through Egyptian embassies and consulates and outreach to expatriate communities. The FRA, through the Egyptian Travel Insurance Pool, will oversee policy issuance, electronic premium collection, claims settlement, and actuarial reviews to ensure the scheme’s long-term sustainability.

Attribution: Amwal Al Ghad English