News Coronavirus watch24 Mar 2020

Egypt:Policyholders get grace period for premium payments

24 Mar 2020

The Financial Regulatory Authority (FRA) is allowing insurance companies in the Egyptian market an opportunity to extend to policyholders a grace period in which to pay insurance premiums on policies in certain classes of business.

Dr Mohamed Omran, FRA chairman, who made the announcement said that the move provides relief to policyholders in the current economic circumstances brought about by the COVID-19 pandemic, according to local media reports.

He outlined what the initiative would entail:

  • Granting holders of individual life insurance policies a grace period of 60 days. Customers who fail to meet the payment deadline and whose policies were cancelled during the period from 1 March to 30 June 2020 may re-apply for coverage under the policies before 31 December 2020 without having to bear any administrative fee or forego benefits.

  • Granting medical and auto insurance policyholders a 30-day grace period from the due date of the premium. Where the due date has expired and the policy canceled, it may be revived according to the normal procedures of insurance companies without policyholders incurring any administrative fees. 

  • Giving group life and property insurance policyholders a grace period of 30 days.

The FRA urged clients of insurance companies to use electronic methods to pay premiums.

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