Friday, April 8, 2022

When are "insurance disputes" included in economic courts?

Many do not know that the cases of "insurance disputes" between clients and companies engaged in insurance activity, especially with regard to the problems of companies from defaulting on compensation, are still outside the scope of the economic court chambers where they are heard before the civil courts, which causes a lot of time and effort to be wasted as some cases continue to be heard in court for more than 25 years without reaching a final judgement, given the high technical nature of these disputes, 

insurance



which require specialists and qualified judges who are aware of the issues. The result ingested by this type of dispute, which necessitates the need to refer them to a competent court to speed up the adjudication of such disputes.

One of the most famous insurance compensation cases that are still being heard in the civil courts since 2006, and for more than 25 years " the case of fire of the graduate youth.

exhibition " against one of the international insurance companies operating in the Egyptian market, and according to the latest updates the court decided last April to refer its papers to the committee of experts, 

and for his part explained one of the victims Engineer Ahmed Sabre that he and a group of fellow graduates at that time worked the exhibition of products of the graduates in the area of Mahdi, a large tent divided into units to display our products of furniture Clothing and leather manufactures, 

and one of the conditions of contract is the need to work an insurance policy, which we have already contracted with one of the insurance companies for the benefit of 45 young exhibitors against the dangers of fire, and after days of work the exhibition was exposed to a large fire accident on 4/7/2005, and the fire devoured all the contents and after completing the procedures and worked a preview by the company to estimate the extent of the damages that were already determined, we waited for the payment of compensation but the company refrained from paying, and we filed a lawsuit to prove our right which is not back to this day.

For its part, the Egyptian Insurance Federation explained that article 4 of the Law on Economic Courts, 

has limited the terms of reference of these courts with regard to disputes arising from some laws, which the Egyptian legislator saw as related to economic activity and 17 laws, but failed in article 6 of the same law to include disputes arising from the application of certain laws related to investment,

 the most important of which is insurance disputes, the most important of which is the extrapolation of the text of article IV, especially with regard to disputes arising from the application of the provisions of the Supervision and Supervision Act. On insurance, the trial and appellate chambers of the economic courts are exclusively qualitative and spatial in the case of criminal proceedings arising from the crimes stipulated in the Law on Supervision and Insurance Supervision in Egypt.

These are the claims provided specifically in Title 14 of the law referred to and its amendments are the following misdemeanours: 

practising insurance or reinsurance without a license, representing or mediating foreign insurance entities or companies without a license, and refraining or delaying in submitting books and documents to the representatives of the Authority for information. To conceal data or to acknowledge incorrect statements intentionally and with the intent to cheat, disclose secrets, violate the tariffs, prices, conditions or forms approved by the Authority, and to mediate in Egypt in an insurance contract or re-insurance without intermediary restriction in the records of the Authority.

With regard to disputes and other non-criminal cases arising from the application of the provisions of the Law on Supervision and Insurance Supervision in Egypt "Insurance Disputes", jurisdiction in the consideration of such disputes and cases is still subject to civil courts in accordance with the conditions in force prior to the application of the provisions of the Economic Courts Law of Law No. (120) of 2008.

It is worth mentioning that in 2013 the Federation has previously demanded that insurance disputes be included within the civil jurisdictions of economic courts, by addressing the Assistant Minister of Justice for economic court affairs, which is confirmed by the Egyptian Insurance Federation so far, because the inclusion of insurance disputes within the civil jurisdictions of the economic courts will have a great impact on the development of the performance of the insurance industry in Egypt, considering that these disputes are characterized by the high technical nature that needs specialized and qualified judges, aware of the accuracy of the issues that result about that kind of dispute.