New motor insurance regulation in Egypt

The Financial Regulatory Authority (FRA) has introduced new insurance regulations for the facultative motor risks class of business.

The new provisions include, but are not limited to the following:

• a damaged vehicle may only be considered as a total loss if the repair cost exceeds 50% of the insured amount,
• in the event of a dispute over compensation between the insured and the insurer, the insurance company is required to make an estimate of the vehicle's market value with the help of more than one motor adjuster
• a customer wishing to transfer the insurance of their vehicle to another company must provide the second insurer with a detailed claims statement from the first insurance company.

Companies must comply with the new regulations within six months of the date of publication in the Official Gazette.

This initiative is aimed at providing better protection to policyholders.