The Financial Regulatory Authority (FRA) has issued a decision regulating the mechanisms and conditions for settling claims by the Egyptian Compulsory Insurance Association for Civil Liability Arising from Motor Vehicle Accidents (Compulsory Motor Insurance Consortium/Pool). The move is aimed at simplifying procedures and ensuring that those affected and their families quickly obtain their insurance rights.
The Pool manages compulsory vehicle insurance in Egypt, including coverage for bodily and material damages to third parties as a result of traffic accidents.
The decision stipulates that an application for compensation must be submitted along with an official copy of the accident report, in addition to the required documents specific to each case, and a legal declaration from the concerned parties confirming the authenticity of the submitted documents. It also specifies the mechanisms for disbursing compensation, whether through a direct bank transfer to the beneficiary or via a duly authorised power of attorney specifying the insurance amount and authorising the agent to receive it.
Documentation
Regarding cases of death, the decision requires the submission of a computerised death certificate, the original inheritance notification, and valid copies of the national identity cards of the adult heirs, while granting the association the right to request additional documents in the event of minors, including birth certificates, guardianship decisions, statements from the guardianship prosecution, and their bank statements, to ensure the protection and management of the minors’ rights in accordance with legal frameworks.
The decision also specifies the documents required to disburse compensation in cases of total or permanent partial disability, foremost among them a report issued by the competent medical authority giving a description of the disability and its extent, in addition to the identification documents of the injured person, in order to ensure the accuracy of the assessment and the fairness of the compensation payment.
In cases of material damage to property, the decision stipulates the submission of a report issued by an inspection expert to estimate the value of the damages.
The decision affirms the Pool’s commitment to settle claim compensation within a period not exceeding one month from the date of the submission of the claim with all supporting documents, reflecting the FRA’s intention for claims to be dealt with expeditiously, to enhance confidence in the compulsory insurance system.