By MEIR team
The government-run Hit-and-Run Accident Fund, which covers damage caused in hit-and-run accidents, has paid EGP136.1m ($8.5m) during the last fiscal year which ended on 30 June 2020 (FY2020).
This was 2% lower compared to compensation of EGP139m paid the previous fiscal year.
Mr Mohsen Ismail, chairman of the Fund, said that the fall in the volume of compensation in FY2020 was due to the lockdown, from the end of March to the end of June, imposed by the Egyptian government to curb the COVID-19 pandemic, according to an Al Mal report.
Insurance companies contribute to the fund 3% of their total premiums generated from compulsory motor third party liability (CMTPL) business.
Mr Ismail said that an agreement had been reached with the CMTPL insurance pool to contribute to the Fund on a monthly basis, in order to ensure the Fund’s liquidity.
He said that the Fund had been paying compensation involving 50 to 65 cases – for permanent partial or total disability or death – each day.
Middle East Insurance Review