FSA Launches an Awareness Campaign to Introduce the Unified Credit Life Insurance Policy

Almost 70,000 Policies were Issued within less than Six Months of its Entry into Force

The Financial Services Authority (FSA) launched an awareness campaign titled, “Credit Life Insurance” through different media channels and social media accounts to enhance awareness, ensure the role taken by insurance as an effective tool for risk management, and introduce insurance products especially the mandatory ones.  The campaign is meant to increase awareness of the policy issued by decision no. (4/2024) and entered into force in June 1st, 2024.  Statistics show that almost 70,000 policies were issued within the first six months of the Unified Credit Life Insurance Policy’s approval.  This policy is achieving its intended regulatory goals which are based on providing protection to policyholders and other parties.

This campaign focuses on clarifying the important role taken by this policy in regulating the contractual relationship among the borrower, bank and the insurance company which is all based on providing protection of the policyholders’ rights on the one hand and achieving stability and sustainability of the other parties on the other hand.  The policy provides social security by protecting borrowers and their heirs within a specified legal framework.  Additionally, the campaign aims to deepening understanding of the policy’s provisions which are clear especially in specifying the coverage or the basic benefits and enhancing awareness of the importance of transparency and disclosure when it comes to the health condition of the borrower.  Such details simplify the processes of specifying the amount of insurance risk and setting adequate criteria for underwriting.  This helps in limiting disputes among the parties:  the borrower, bank and the insurance company as well as limiting the risks resulting from providing inaccurate data or material information about the borrower’s health condition when signing the policy that could lead to losing the right to claim for compensation.

Moreover, the campaign messages shed light on the main provisions of the policy.  First, the provision related to obliging insurers to indemnify for any medical condition, undisclosed by the insured, after four years have passed from the commencement of the policy except for the cases of intentional forgery of the papers and disability caused by physical disabilities or previously diagnosed diseases.  Second, provisions related to the exclusions that took into consideration the long length of such policies such as cases of concealing a previously diagnosed illness before purchasing the policy which have led to death or disability; and cases of intentional attempt by the insured to obtain the benefits of coverage through misrepresentation or forging documents.  Such exclusions also include cases if disability or death as a result of adventure activities, some dangerous sports activities and exposure to radiation unless it is a part of treatment plan supported by medical reports certified by the Ministry of Health.

It is worth mentioning that the awareness package will last for three weeks as a series of awareness messages about the policy will be published via the FSA’s social media platforms. Additionally, many events and activities including meetings and workshops will be held in densely populated governorates targeting representatives of the insurance sector and the banking sector, entrepreneurs and representatives of government units in such governorates.