Egypt – The Financial Regulatory Authority (FRA) has made it mandatory for companies operating in the consumer finance sector to provide insurance to their customers, with the aim of strengthening the protection of users of non-bank financial services, supporting financial and social stability, and strengthening integration within the non-bank financial sector.
Under Council Decision No. 28 of 2026, consumer finance companies are required to insure their loan customers against the risk of death and total disability for any reason until the age of 65. The insured amount must be equal to the customer’s loan balance. The decision also allows coverage for customers aged 65 and over, subject to agreements between insurers and consumer finance providers.
The decision also required life insurance companies and capital formation companies to adopt a uniform policy template to cover consumer finance companies’ customers. These agreements waive certain service fees. Insurance companies and consumer finance companies have been given a six-month grace period to regularize their positions in line with the new requirements.
The unified terms and conditions stipulate that the consumer finance company will be the policyholder and the life insurance company will be the insurer. Insurance must apply to all customers listed on approved statements submitted by the finance company, with an insured amount equal to the customer’s loan balance up to age 65. Insured customers are automatically accepted without separate underwriting.
In the event of death or permanent disability, the insurance company must settle the insured amount equal to the loan balance within a maximum of five business days from the date of receipt of the required documents. These documents include a copy of the customer’s national ID card, a death certificate or certified medical report, and an account statement showing any outstanding debts.
The contract defines total permanent disability as a condition in which the insured is permanently unable to work for six consecutive months or more absent medical improvement. Covered accidents include complete loss of vision or complete paralysis of both limbs. However, risks arising from crimes committed by the beneficiary, exposure to nuclear radiation, or cases of HIV infection that occurred before the policy was issued are excluded from coverage.
This judgment confirms that the Economic Court has jurisdiction over any disputes arising from the performance or interpretation of contractual provisions. It also stipulates that the insurance contract will be invalidated in the event of fraud or material misrepresentation.
© 2026 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).
