Egypt – Life Insurance for low-income groups
Friday, 02 23 2018, Category: Insurance and Reinsurance, Country: Egypt
Acting in cooperation with the Misr Life Insurance Company, Egypt’s banks will soon be offering a new life insurance plan called “Aman” to lower-income groups of society.
“Aman”, meaning security in Arabic, combines the merits of both bank and insurance certificates and will cover those who do not fall under the current social security umbrella, including temporary workers, working single mothers, farmers, and other individuals who do not have social security coverage.
Details of the insurance plan were announced at a meeting earlier this week between President Abdel-Fattah Al-Sisi, Prime Minister Sherif Ismail, Governor of the Central Bank of Egypt (CBE) Tarek Amer, and head of the Administrative Control Authority Mohamed Erfan.
“One certificate in the plan is worth LE500, and anyone can buy up to five certificates,” said Mohamed Youssef, head of the Misr Insurance Holding Company. “There has been no obligation until now for employers to buy life insurance certificates for their employees. Workers can now buy them for themselves, or employers can take off a percentage of workers’ salaries to buy them.” Youssef said.
In the event of the natural death of the policyholder, “beneficiaries may receive a maximum of LE50,000 in life insurance payments if the insured had bought five certificates,” Youssef explained.
If the holder dies in an accident, the beneficiaries will receive between LE50,000 and LE250,000 depending on the number of certificates the policyholder had bought. One certificate will also be included in a lottery every three months, and 200 winners will each receive LE10,000,” he added.
Source: Ahram Online