The Egypt Financial Regulatory Authority (FRA) issued a decision requiring companies operating in consumer finance to provide insurance cover for clients receiving financing up to age 65, against death from any cause and permanent total disability. The sum insured must equal the client’s outstanding financing balance. Coverage for clients above age 65 is permitted subject to agreement between the insurance company and the consumer finance company. Life insurance and capital formation insurers must use a unified contract template for this product, with these contracts exempted from the applicable service fee, and the template provides for automatic acceptance of insured clients listed on approved schedules. In the event of death or permanent total disability, the insurer must pay the remaining finance balance within five working days of receiving the required documents; the contract also defines permanent total disability, sets exclusions (including crimes by the beneficiary, nuclear radiation exposure, and pre-existing AIDS), assigns disputes to the economic courts, and provides for nullity in cases of fraud or materially incorrect information. Insurance companies and consumer finance companies have six months to bring arrangements into compliance.
Egypt Financial Regulatory Authority 2026-02-11
Egypt Financial Regulatory Authority mandates death and permanent total disability cover for consumer finance clients up to age 65
The Egypt Financial Regulatory Authority mandates consumer finance companies to insure clients up to age 65 against death and permanent total disability, with coverage equaling the outstanding financing balance. Coverage for clients over 65 requires agreement between the insurer and finance company. A unified contract template is required, exempt from service fees, with insurers settling claims within five days of documentation receipt.