For Egyptians abroad... Addition of arbitrary dismissal compensation to the optional insurance policy starting from August

Written by Ziad Abdel Fattah:

The Financial Regulatory Authority and the Ministry of Foreign Affairs and Emigrants and Expatriate Affairs signed Protocol Cooperation to develop the optional insurance policy, by adding new coverage for arbitrary dismissal risks, effective August 1st, in a move aimed at strengthening the insurance protection umbrella for Egyptians working abroad.

The protocol was signed by Dr. Islam AzzamH.E. the Chairman of the Financial Regulatory Authority, and Ambassador Nabil Riad Habashy, Deputy Minister of Foreign Affairs and International Cooperation and Egyptians Abroad, within the framework of the state's efforts to provide more comprehensive financial and insurance protection for Egyptians residing and working abroad, and to respond to the changing needs of international labor markets.

Under the protocol, coverage for arbitrary dismissal risks will be optionally available within the insurance policy for Egyptians abroad. It will be possible to subscribe electronically through the dedicated platform, alongside implementing awareness campaigns to introduce the benefits of the policy and simplify the procedures for utilizing it.

Dr. Islam Azzam, Chairman of the Financial Regulatory Authority, said that the protocol reflects the integration of state institutions' efforts to develop the insurance protection system for Egyptians abroad, keeping pace with the changes that workers in foreign markets may face. He affirmed that the addition of arbitrary dismissal coverage came in response to demands raised during the sixth conference of Egyptians Abroad, and after coordination with the Ministry of Foreign Affairs and the Egyptian Company for Travel Insurance Abroad.

448,000 documents issued after raising insurance value

He explained that the document's development is a continuation of last year's updates, which included raising the insurance amount from 100,000 Egyptian pounds to 250,000 Egyptian pounds. He noted that the Egyptian Company for Travel Insurance Abroad issued approximately 448,000 policies with total premiums amounting to 110 million Egyptian pounds following those amendments.

Azzam confirmed that the protocol represents a new phase in the development of the insurance document, by adding new benefits and linking awareness and implementation efforts among the concerned parties, thereby strengthening social protection networks for Egyptians abroad, within the framework of Unified Insurance Law No. 155 of 2024.

On his part, Ambassador Nabil Habashy, the Deputy Minister of Foreign Affairs, affirmed that the protocol embodies the state's continuous concern for its citizens abroad and is part of a series of measures aimed at enhancing trust and communication with Egyptian communities abroad, pointing out that the upcoming period will witness the launch of more initiatives supporting expatriates.

He added that the ministry has observed great cooperation from the Financial Regulatory Authority and the Egyptian Company for Travel Insurance Abroad, which has contributed to the development of the policy and the addition of new insurance coverages that meet the needs of Egyptians working abroad.

Under the new amendments, the document includes compensation of up to 100,000 pounds in cases of proven arbitrary dismissal, termination of the employment relationship, and deportation of the worker for reasons beyond their control, including cases of mass layoffs resulting from political or economic conditions.

The document also includes coverage for permanent total disability resulting from accidents, up to £250,000, in addition to compensation for natural death or death resulting from an accident, with the costs of repatriating the body to the homeland covered according to the policy's terms and conditions, for an annual premium of £400.

The protocol stipulates that the Ministry of Foreign Affairs shall raise awareness of the document and its benefits through its diplomatic missions and communication channels with Egyptian expatriate communities abroad. The Financial Regulatory Authority, through the Egyptian Company for Travel Insurance Abroad, shall be responsible for implementing the mechanisms for issuing policies electronically, collecting premiums, and ensuring prompt disbursement of compensation to beneficiaries, in addition to conducting actuarial studies necessary to update the policy pricing according to actual results.