News Middle East16 Sep 2019

Egypt:Insurance body examines insurance for inbound tourists

| 16 Sep 2019

The Insurance Federation of Egypt (IFE) is studying the issue of insurance coverage for inbound tourists.

IFE members have met officials of the chambers of tourism to discuss the issue and to work out a cooperation protocol between the two sectors, reported Al Mal.

The subject of insurance coverage for tourist arrivals was proposed in 2013 but no scheme has been implemented out of those discussions.

In July last year, the Financial Regulatory Authority considered a draft law for compulsory tourism insurance for inbound tourists to protect against the risk of personal accident.

At that time, FRA deputy chairman Reda Abdel Moaty told Al Mal that the regulator had commissioned actuaries and insurance committees to study the required coverage against the risks of death and permanent total disability, as well for medical expenses that might be incurred while the tourists were in Egypt.

He pointed to coordination with the Ministry of Tourism to provide the FRA with statistics on the annual number of tourists. The data was to be used in the actuarial study, which will help determine risks, exceptions and pricing.

He said that a proposed draft law for mandatory tourist insurance will deal with the mechanism of collecting premiums and the bodies entrusted to carry out this function, pointing out that the purchase of coverage will be done individually through insurance companies, or through a group of insurers wishing to provide the service. He expected the premium on the cover to be low.

Longstanding issue

Separately, a senior insurance executive official, who declined to be identified, described the idea of ??compulsory insurance for incoming tourists as a subject which has been bandied about more than once in the past three decades, but which has not been implemented for various reasons.

He pointed out that among these reasons is the difficulty of defining inbound tourism, including whether foreigners working in Egypt or arriving for medical treatment will be included, in addition to the premium collection mechanism itself, such as whether it will be through the establishment of booths for insurance companies at airports and ports.

He pointed out that among the obstacles that prevented the completion of the mandatory tourist insurance study was the difficulty of coordination between ministries such as those of tourism, foreign affairs, the interior and finance.

The new draft comprehensive insurance law announced by the FRA in July does not contain any provisions relating to compulsory insurance for inbound tourists. The draft lists 21 types of mandatory insurance covers, ranging from alimony insurance to liability insurance for tour companies.


 

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