As part of the latest standard group insurance model, the maximum age for microfinance insurance has been increased from 60 to 65 years, according to a statement from the Egyptian Financial Regulatory Authority (FRA).
The decision, issued by FRA Chairman Mohamed Farid, introduces a new framework for lifetime and permanent total disability compensation for micro-project funders. Decision No. 27 of 2026 replaces the previous Decision No. 16 of 2019 and gives insurance companies and financial institutions a six-month grace period to comply with the new regulations.
In the latest model, insurance coverage may be extended to individuals aged 65 and older, depending on specific agreements between insurance companies and financial institutions.
This insurance covers death and permanent total disability from any cause. Coverage begins on the date specified in the data provided to the insurance company and ends at the end of the funding period.
FRA requires that insurance companies must pay claims directly to policyholders or insureds within five business days after receiving all required documentation.
Premiums are calculated based on the balance of funds held by the insured, excluding administrative fees, stamps, and policyholder fund applications.
Permanent total disability is defined in this contract as an incurable condition lasting six consecutive months that leaves the insured completely unable to work. This includes complete loss of vision in both eyes, complete paralysis, or amputation of an arm or leg.
The updated model no longer covers risks resulting from crimes directly or indirectly committed by the beneficiary, nuclear radiation injuries, or cases of AIDS that existed before the policy start date.
Financial institutions must pay premiums within 30 days of the due date or coverage may be terminated. Required claim documents include a copy of the national identity card, an original death certificate or certified medical report proving disability, and an account statement showing the insured’s outstanding debt balance.
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