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The Authority hosts the signing of the “Amended Agreement” between the Egyptian insurance sector, the Egyptian Railways Authority and Cairo Metro Authority

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 Dr. Omran: The social responsibility of the Egyptian insurance sector extended to providing protection and insurance coverage for all citizens who use trains
 Dr. Omran: Raising the compensation paid to railway and metro accident victims to 30 thousand pounds
 Dr. Omran: Granting license to open branches for railways and underground-metro accidents’ insurance pool in the governorates

The Financial Regulatory  Authority (FRA)  hosted at its headquarter in Smart Village the signing of the “amended agreement” between the Egyptian insurance sector represented in  railways and  underground-metro accidents’ insurance pool with the Egyptian Railways Authority and Cairo Metro Authority . The agreement amends the insurance amount to be paid to railway and metro accident victims in the presence of Chairman of the Insurance Federation of Egypt.

Dr. Mohamed Omran, FRA’s Chairman noted that 16 years have passed since the formation of railways and underground-metro accidents’ insurance pool and time has come to amend the value of financial compensation paid to citizens affected by train accidents and subway units in cases of death and total permanent deficit and in order to conform with the consequences of the current economic conditions. He added that value of the paid compensation must be valuable. Also, FRA’s Chairman noted that this insurance pool shall continue to play its insurance role efficiently and positively to cope with the risk of accidents that may be resulted from the fact that a very large segment of citizens estimated at 3.5 million passengers per subway and 1.5 passengers for railway trains are using this means of transportations daily.  He emphasized that despite the state’s keenness to provide the most modern safety in these means of transportations however its accidents are catastrophic especially if the victims include men or women who support entire families.

He added that the items in the amended agreements – which is in question – allows the insurance companies to pay 30 thousand pounds as a compensation upon death or permanent total disability, up 50% of the amount of the previous compensation, and in case of permanent partial disability compensation is paid according to the disability ratio stated in personal accident insurance policies.

Dr. Mohammed Omran stated that his decision that was issued to allow the formation of branches of railways and underground-metro accidents’ insurance pool has entered into force after it was published in the Official Gazette No. 12 and issued mid January 2018, adding that it is in a step to help citizens to submit compensation documents in their governorates instead of submitting it at the only and main pool in Cairo. He asserted that the insurance industry in Egypt continues to practice its social responsibility through railways and underground-metro accidents’ insurance pool which was entrusted with the management of the insurance process for railway and metro accident victims and speed up the calculation and payment of compensation on the behalf of the insurance companies which participated in the formation of the pool.  It is worth mentioning that the compensations paid to railway and metro accident victims for the previous fiscal year ended on 30/6/2017 according to the financial statements of the insurance pool was 8.5 million pounds. In addition, the technical allocations for compensations under settlement at the same date were amounted to 118 million pounds.

Eng. Said Salem, Chairman of the Egyptian Railways Authority said that the safety of railway and underground passengers comes first. We seek to develop and modernize signals systems in multiple sectors of railway tracks and to connect them with the tractor unit to open and close the crossing gates with the crossings on the train tracks and all that is associated with the automatic and audible alarm systems at a cost of one billion pounds in order to reduce the risk of accidents.

Consultant  Reda Abdel Moaty – FRA’s  Deputy Chairman also noted that the insurance pool  is considered as a non-profit insurance entity, but to perform an insurance service stemming from the conscience of the Egyptian society. Its main objective is to limit the economic suffering of citizens as a result of their risk of accidents.  This insurance pool was formed in 2002 upon the event of a catastrophic train accidents witnessed by the Egyptian society at the time, and in order to meet the desire of the Egyptian society to provide a mechanism that offers an insurance umbrella for passengers of trains and metro. Consequently, the accident committee of the Insurance Federation of Egypt conducted an in-depth study on the risk after obtaining all the needed data and according to this study   the annual premium was defined and it is paid from the price of train tickets. He added that the compensation shall be paid to the injured without an intermediary and without any legal action once the documents are submitted (notification of heredity, death certificate, police record) in addition to notification of the accident issued by the Railways Authority or Cairo Metro Authority.

 Alaa Al-Zuhairi, Chairman of the Insurance Federation of Egypt emphasized that the Federation will conduct an actuarial study to determine the value of the installment to be paid by the Egyptian Railways Authority and Cairo Metro Authority so that the insurance pool  may pay  30 thousand pounds as a compensation in case of death.

Mohammed Abo El-yazid – Chairman of the insurance pool said that the settlement period will take ten days from the date of submitting the required documents. The pool has paid approximately 110 million pounds of compensation due to railway accident to victims of trains’ accidents and their successors since the formation of the insurance pool in 2002 and until now.
 

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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