What are the Most Popular Insurance Types in Egypt?

We each like to insure ourselves in different ways; some even prefer to insure their families and their properties as well. To understand how insurance policies can be beneficial you must first understand what insurance is and its purpose.

What is insurance?

It is a social system implemented on both individuals and companies with the goal of minimizing loss if an accident takes place. Most insurance companies offer different policies that benefit all sectors.

What are the types of insurance?

There are many types but the top 5 are:

Social insurance: 

An obligatory insurance system enforced by the government on employees. Each month a percentage of the employees’ salary is deducted by their employers and deposited on their behalf in the social insurance fund. Eventually after the employee reaches retirement age they can receive a monthly pension from the social insurance fund.

Health insurance: 

One of the most important insurance types, it covers any medical expenses incurred by the insured while sick. It also provides total or partial disability benefits. The point behind health insurance is to minimize costs for the patient at the time they are ill in exchange for a fixed amount (premium) paid once a year to the insurance company. Health insurance can be part of your job benefits or you can subscribe on your own to the new state provided universal health insurance system. 

“Health insurance covers any medical expenses incurred by the insured while sick and also provides total or partial disability benefits.

Life insurance:

For this type of insurance the applicant requests an insurance policy on their life from an insurance company. The insurance company is obligated to pay out the insurance amount to the policy beneficiaries if the insured passes away while the policy is active. The insurance company may also pay the insurance amount to the insured if they reach 65 year of age while the policy is active. In exchange the insured pays a monthly premium to the insurance company for the duration of the policy. 

Property insurance:

A popular insurance type is property insurance where the insured has a policy against hazards such as theft, fire, and natural disasters including storms and heavy rain as protection for their homes, cars, or any other asset they wish to insure.

Car insurance:

One of the most popular insurance policies; it comes in 2 types:

• Compulsory Car Insurance:

Implemented in Egypt since 2007, it is obligatory for anyone who obtains or renews a car’s license to purchase a policy from the various car insurance companies’ kiosks located inside each local Department of Motor Vehicles office.

• Supplementary Car Insurance:

The insurance policy is in the name of the car owner (whose name must be on the driver’s license as well) but the compensation is usually accorded to the bank or loaning authority if the owner acquired a car loan in order to purchase the vehicle. If the car owner is unable to pay the remaining installments the insurance company may do it for them.

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