Chapter Fifteen
General Rules
Article 81 - Individuals and bodies corporate may not make a contract of any direct insurance transactions relating to their properties or liabilities in Egypt unless the companies are subject to this Act. However, when it is impossible to make these contracts in Egypt, the Authority may authorise effecting the insurance with other than these companies according to the rules set by the board or directors of the Authority.
Article 82 - No individual or body corporate may transact in A.R.E. personally or through mediation any activity related to the insurance or reinsurance without obtaining the due license from the Authority and being registered at it.
Article 83 - The chairman of the Authority and all of its staff are prohibited to take part in forming or managing any of the companies or cooperative insurance societies subject to this Act
Article 84 - The disputes of which the Authority or any of the companies subject to this Act is one party, shall be settled in the following way :
a) A committee set up by the competent minister regarding disputes between the Authority and
one of insurance or reinsurance companies registered under this Act
This committee is to be formed as follows :
- a representative of each disputing parties.
- a chancellor from the council of state nominated by the president of the council
- an insurance expert known for his efficiency and expertise nominated by the competent
minister.
- a specialised university professor by the consent of the university
The chairmanship of the committee shall be according to its formation decision and decisions
on the dispute in question shall be made by the majority of votes in a period up to three months as from the date of its formation of its decision and it shall be final and binding to the parties. The executive regulation specifies the procedures followed by the committee in carrying out its work
b) The board of the Authority in the case of a dispute between insurance and reinsurance companies according to the measures stated in clause (a) or this article other than any disputes settled by the Egyptian Insurance Federation among its members.
c) Arbitration bodies provided for in section six of Act No.60 of 1971 on the public sector organizations and affiliated companies regarding disputes arising between the Authority or insurance and reinsurance companies mentioned in this article and a local or central governmental department, or general authority or a public company provided that the parties to the dispute agreed to transfer it to arbitration.
d) Arbitration bodies mentioned in the previous item regarding the disputes arising between the Authority or insurance companies mentioned in this article and individuals or bodies corporate or the private sector, if the parties to the dispute agreed to refer it to arbitration.
In all cases specified in the preceding items the insureds and beneficiaries may resort to the Authority to present their disputes with the insurers without violating their right to refer to the court.
Article 85 - Each insurance company shall pay to the Authority an annual fee to meet the costs of supervision and control of all business transacted in Egypt on the base of a percentage of the total direct premiums due to the company from the policyholders of the previous financial year as follows
1- Two and a half per mill of the insurance business specified in the first item of the first
paragraph of article 1 of this Act.
2 - Six per mill of the insurance business specified in the second item of the first paragraph of
the above article.
The company may not collect this fee from the policyholders or the insureds in excess of the two mentioned rate.
The company must pay all these fees within a month from thc date of the approval of the general meeting of the company to its balance sheet in the case of delay of payment, a fine shall be payable to the Authority accounted on the base of the rate of discount published by the Central Bank of Egypt.
The amount of these fees will be put into a separate account of the Authority of which expenses will be allocated to aspects of insurance control and supervision.
Article 86 - Bodies under the provisions of this Act shall furnish the Authority with full details of tariffs of general insurance, rates of life assurance, terms and forms of insurance policies whenever any alteration arises to be checked in the light of the necessary studies to ensure the fair rate. These tariffs, rates, terms or forms shall not be valid unless approved by the Authority. Lapse of thirty days as from informing the Authority without being decided on shall be considered as an approval decision.
The Authority shall periodically monitor the tariffs and rates applied to the companies in the light of the actual results to ensure the satisfaction of the fair rate and the companies shall be subject to the alterations of the Authority in this regard.
In respect of the insurance classes specified in article I, second item (2,3,4,6,7,8) of this Act, their tariffs and rates need not the Authority's approval to be in force, but only it shall be sufficient to notify the Authority. The provision of the above paragraph shall be applied to all other classes of insurance after the lapse of five years from the date of this Act being in force.
Article 87 - The company may not publish any of the data it should present according to the provisions of the Act unless they are identical to the data presented to the Authority. Identical copies of the original data may be published.
Article 88 - The owner of any interest approved by the Authority may sight the documents and data presented according to the Act or to obtain copies, certificates, extracts of them or of the decisions made by the Authority or the registers specified in the Act except the technical bases of the insurance rates after paying the due fee.
Insurance companies shall allow the policyholders to sight the data pertaining to their policies, or give them at their request a copy of it, after payment of the due fee.
The amount of fees payable in accordance with this article will be fixed by the attached schedule.
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