Instructions for the Principles of Practicing the Profession

Instructions on the Principles of Professional Practice Standards and Regulations for Insurance Companies' Fair and Transparent Dealing with Customers

No. Articles : 23    Effictive Date : 10-04-2025

Article (1)

These instructions are called the Instructions on the Principles and Standards of Professional Conduct for Insurance Companies in Dealing with Their Clients in a Fair and Transparent Manner for the year 2025 (issued pursuant to Article 24, paragraph (i), and Article 109, paragraph (b), of the Insurance Business Regulation Law No. 12 of 2021) and shall come into effect as of April 10, 2025.  

Article (2)

A. The terms and phrases used in these instructions shall have the meanings assigned to them in Article (2) of the Insurance Business Regulation Law No. (12) for the year 2021, unless the context or evidence indicates otherwise.

B. For the purposes of these instructions, a “client” means any person whom the company approaches or offers its products or services to.

Article (3)

The insurance company is committed to transparency and fairness in its dealings with customers, whether these dealings are direct or through any of the insurance service providers with whom the company has contracted for this purpose. This commitment begins at the pre-contract stage and continues until the end of the contract and the fulfillment of all obligations arising from it, as well as any other insurance services related to the insurance contract, while taking into account the following:

A. The requirements and needs of the customer when developing and marketing insurance products and selling them; and taking sufficient measures to limit any risks related to selling insurance products or services that do not meet customer needs.

B. Providing the customer with accurate, clear, and sufficient information about the insurance contract and the coverage it entails.

C. Providing appropriate advice and guidance to the customer to help them understand the insurance products, services, and coverages offered.

D. Obtaining only the necessary data for providing the service and explaining the justification for obtaining it if possible; using this data legally and in accordance with applicable laws; and taking all procedures and measures to ensure data protection and confidentiality.

E. Ensuring that all communications between the company and its customers are properly documented.

Article (4)

The Board of Directors of the insurance company is committed to adopting the following policies as a minimum; to be reviewed annually or whenever necessary to monitor compliance with implementation of what is contained therein:

1- Claims Settlement Policy.

2- Data Protection Policy and maintenance of confidentiality of information in accordance with applicable legislation.

3- Customer Complaints Handling Policy and necessary procedures for dealing with them.

Article (5)

The insurance company undertakes to continue providing the insurance offer presented by it to the client for the period specified therein. In case the period is not determined, it must adhere to the offer for (15) days from the date of its submission.

Article (6)

A. When preparing the insurance application form, the insurance company shall comply with all of the following:

1- Formulate the questions and information in the insurance application form in a clear and understandable language, providing the client with sufficient time to review it and respond clearly to all inquiries contained therein.

2- Explain the importance of providing information related to the subject of insurance, the type of insurance, or the required branch of insurance included in the insurance application form for the purposes of issuing the insurance contract; alert the client to the necessity of disclosing such information and other essential data correctly and sufficiently; and explain the legal consequences of non-disclosure or disclosure of information that does not reflect reality.

3- Include all necessary data for risk assessment.

4- Disclose any other services provided by the insurance company separately from insurance services and the cost of providing them.

5- Include a statement in the insurance application form advising the client to retain documents and correspondence between him and the insurance company.

B. Upon receipt of the insurance application, the insurance company shall comply with the following:

1- Verify that the application submitted by the client for concluding the insurance contract is fully completed and signed directly by the client or his representative.

2- Obtain the client’s confirmation of the information and data provided by him and any other additional data within (10) days from the date of obtaining it or becoming aware of it in case the company agrees to receive the application submitted on forms other than those adopted by it.

3- Educate the client about methods and ways to prevent the occurrence of the insured risk or mitigate its effects if it occurs.

4- Not reject the insurance application or request for renewal of the insurance contract without a justified reason.

5- Adhere to sound technical principles when pricing the insured risk, avoiding exaggeration or reduction that negatively affects the company itself or other insurance companies.

6- Not discriminate between the insurance company’s clients in terms of insurance prices, conditions, or coverage benefits unless justified; including reasons based on technical or actuarial grounds.

7- Provide the client with a copy of the insurance application upon completion. 

Article (7)

The insurance company is committed to adopting internal procedures to assess the solvency of the customer before selling savings insurance products and investment-linked insurances, and to include at a minimum each of the following:

1- Developing a mechanism to evaluate the customer in terms of solvency and the suitable insurance product for him.

2- Establishing a clear mechanism for dealing with customers whose financial solvency does not match the insurance product.

3- Effective and continuous supervision of insurance agents and sales staff to enable them to analyze the customer’s needs and acceptable risk level.

4- Keeping records to facilitate the process of reviewing compliance with the company’s approved procedures.

Article (8)

A. When drawing up an insurance contract, the insurance company is obligated to do all of the following:

1- Use simple and clear language and accurately present the data in the contract to enable the client to understand its terms and conditions.

2- Not include in the insurance contract anything that indicates its right to modify any of the contract’s clauses at its sole discretion and without the client’s consent.

3- Include in the insurance contract the sum insured, the insurance premium amount, commissions or fees associated with the service whether at the expense of the client or the insurance company, and any other amounts or fees, and state the deductible (waiver) amount in a table in the insurance contract or in a prominent place on the first page of the contract.

4- Highlight exceptions and conditions that materially affect the client’s right to the sum insured or compensation and/or those that result in the invalidity of the insurance contract in large, distinct font, and have the client sign next to them acknowledging reading and agreeing to their content.

5- Fix the following information in life insurance contracts:

    A. Cancellation clause.

    B. Disclosure of whether the return is guaranteed or not.

    C. Premium allocation method.

6- Include in the contract the rights and duties of its parties, the consequences of breaching contractual obligations; in addition to cases allowing for contract cancellation and the date and time for payment of dues in case of cancellation.

B. Any amendment to the insurance contract shall be made through appendices prepared by the insurance company after obtaining the insured’s approval of such amendment.

C. The insurance company is committed to providing the client with a copy of the insurance contract and its appendices upon conclusion of the contract, while keeping a signed copy by both parties at the company or their legal representatives.

D. The coverage memorandum remains in effect prior to issuing the insurance contract until the specified period expires or until the contract is issued, whichever comes earlier.

Article (9)

The insurance company, upon renewing the insurance contract, is committed to all of the following:

A. Sending a renewal notice to the client in accordance with approved means of notification at least one month before the contract’s expiration date.

B. Ensuring that the renewal notices for insurance contracts contain an alert to the client about the necessity of disclosing any essential information or any significant change that could impact the insurance company’s decision to continue accepting the risk, or the prices or conditions it initially accepted; whether the change occurred after the contract came into effect or after its last renewal.

C. Renewing the contract in accordance with the terms and premiums specified in the renewal notice; unless any additional data emerges for the insurance company before accepting the renewal offer, which could impact any of the agreed terms or premiums with the client.

Article (10)

A. In the event of the cancellation of an insurance contract, the insurance company is obligated to notify the client at least 30 days in advance of the cancellation date, unless otherwise agreed.

B. Taking into account the provisions of the instructions concerning life insurance policies in force; in the event of the cancellation of an insurance contract, the insurance company may deduct the following from the amount to be refunded to the client:

     1. The cost of the medical examination, if it was conducted for the client for the purposes of concluding the insurance contract.

     2. Any fees, stamps, or any amounts incurred by the company up to the date of cancellation.

     3. Changes in the investment unit price when calculating the amount to be refunded to the client for investment-linked life insurance contracts.

C. In the event that an insurance contract expires for any reason, the insurance company is obligated to:

     1. Refund any premiums or expenses due to the insured or beneficiary within 30 days of the expiration date.

     2. Provide all the necessary documents and information to the insured or beneficiary upon request.

Article (11)

A. The insurance company is committed to the following:

1. Using clear and simple language in the claim form it adopts, and clearly specifying the information required to be included by the claimant.

2. Adopting special forms to identify all the papers and documents necessary for settling claims according to the type of insurance, which should be provided free of charge, and clarifying all procedures and available means for this, including the possibility of appointing a loss adjuster.

3. Guiding the claimant in filling out the claim form and the necessity of obtaining what proves his review of the company and submitting a claim.

4. Ensuring that employees responsible for settling claims have the appropriate expertise and qualifications, and continuing their training as needed.

B. The insurance company is committed to the following when settling claims:

1. Responding quickly upon receipt of the claim, ensuring the completeness of documents, records, and necessary information, and informing the claimant if there are any deficiencies to be completed.

2. Informing the claimant of the rejection or acceptance of the claim in accordance with the approved means of notification and committing to explaining the reasons for rejection in writing.

3. In case of accepting the claim and agreeing on its amount; The insurance company is committed to providing the claimant with what clarifies the value of the compensation, its calculation bases, and the expected date of receipt.

4. Informing the claimant of any updates related to his claim upon his request.

5. Not requiring the client to sign what proves the release of the company's liability except when paying the agreed compensation amount.

C. The insurance company shall bear full responsibility for the coverages contained in the insurance contract and pay its obligations, regardless of the extent to which they are covered within reinsurance arrangements or recognized by the reinsurer or delayed by the reinsurer in paying its share.

D. The insurance company shall not deduct any amount from the value of the compensation due without legal justification.

E. The insurance company is committed to implementing final judicial decisions related to the insurance contract within (7) working days from the date they become final. 

Article (12)

The insurance company undertakes to:

A. Receive and process customer complaints; while taking into account the following:

1. Verifying the effectiveness of the customer complaint handling policy in enabling the company to conduct its business in a responsible professional manner to achieve the best interests of customers at all stages of their dealings with the insurance company, and maintaining written internal work procedures for application.

2. Adopting appropriate mechanisms to receive complaints through the main center and all its branches and sales points; in addition to complaints received from the Central Bank.

3. Not imposing any restrictions or conditions that would impede the customer's right to lodge a complaint, and not subjecting them to any commissions or fees.

4. Informing customers of their right to complain through the following:

     A. Providing brochures and publications at the main center and branches of the insurance company; or through the company's website; in addition to social media if available.

     B. Informing illiterate customers of their right to file complaints.

     C. Providing the necessary means and tools to enable customers to submit complaints, including:

          - Regular mail.

          - Email and electronic channels of the insurance company.

          - A toll-free phone line – if available – with calls recorded, and informing the customer of this.

          - Personal attendance.

          - Complaint boxes located at the main center and all branches of insurance companies.

          - Fax.

B. Adopting an electronic system or register to record all incoming complaints; while taking into account the following:

1. Recording complaints in a manner that assigns a reference number to each complaint, with this number being used in all correspondence between the insurance company and the complainant; as well as in any correspondence with the Central Bank regarding the complaint.

2. Keeping the complaint in a dedicated register; while providing the customer with an acknowledgment of receipt of the complaint that includes the following information:

          - Reference number of the complaint.

          - Full name of the complainant.

          - Contact information of the complainant.

          - Subject of the complaint.

          - Date of receipt of the complaint.

          - Phone or email number of the department concerned for follow-up.

3. Recording all communications, procedures, and documents related to the complaint in the electronic system or register.

4. Retaining all information regarding customer complaints entered and stored in the electronic system or register for a period of (5) years from the date of completion of their processing at least, or according to the retention periods stipulated in relevant legislation - if any - whichever is longer.

C. Establishing a special organizational unit to deal with and process customer complaints; proportionate to the size of the company's business, the number and diversity of products and services, and the number of complaints; while committing to:

1. Staffing it with employees and training them to deal with customer complaints efficiently and effectively, ensuring they have sufficient knowledge of all services and products offered by the insurance company; in addition to familiarity with the applicable legislation regarding policyholders' rights.
2. Dealing with all complaints without discrimination or distinction between customers, insured persons, and beneficiaries, in a clear and effective manner that ensures justice for customers, insured persons, and beneficiaries.
3. Appointing a liaison officer with the Central Bank and an alternate from the unit's staff; specifying means of of communication with them, and informing the Central Bank of any amendments or changes.
4. Not linking the unit to a service for receiving and responding to customer inquiries about the company's services and products.

D. Following up and studying complaints as follows:

     1. Evaluating the complaint, processing it, and taking the appropriate decision; with the customer being informed of the decision within (10) working days from the date of receipt of the complaint and completion of all necessary documents for consideration. This period can be extended for a similar duration if the nature of the complaint requires it, with the complainant being informed of the reasons for the extension.

     2. Informing the complainant of the final result of the submitted complaint according to approved notification methods; in simple and easy language that is not open to ambiguity or interpretation, and does not contain specialized technical phrases that are incomprehensible to the complainant.

     3. Conducting a comprehensive periodic analysis of all customer complaints received to identify those that could affect the reputation and financial position of the insurance company; determining the extent of their recurrence, and then beginning to take corrective and preventive actions to avoid their occurrence in the future.

     4. The unit submitting a periodic report to the circle responsible for compliance tasks in the insurance company, with a copy to senior management; detailing customer complaints against the insurance company, stating the number of complaints received, the number resolved, and the value of compensation paid. A yearly report on these matters should also be provided to the Central Bank.

Summarize the results of the complaint evaluation report in an aggregated manner in the annual report and on the company's website, indicating the number of complaints received and those settled according to insurance branches.

Article (13)

A client may submit a complaint to the Central Bank after reviewing it with the insurance company in the following cases:

A. The insurance company’s response to the complaint was not convincing.

B. The insurance company did not respond to the client with the maximum period specified in these instructions.

C. The insurance company refused to accept the complaint.

Article (14)

The insurance company is committed to taking sufficient and appropriate actions to avoid any potential conflict between the interests of clients and its own, as follows:

A. Ensuring that the incentive and reward policy it adopts for its employees; does not lead to inappropriate sales or behavior that may harm the client’s interest or provide him with non-neutral and independent advice. 

B. Working to properly manage and disclose identified conflicts of interest in accordance with policies adopted by the insurance company.

Article (15)

The insurance company is committed to all of the following:

A. Ensuring that all information related to the products and services provided through its website is displayed clearly, accurately, and up-to-date.

B. Committing to transparency in educating customers and informing them about the nature of transactions carried out through electronic means; explaining the risks of these transactions and the obligations arising therefrom; taking into consideration the provision of clear guidelines and instructions in this regard.

Article (16)

Insurance companies are committed to complying with the applicable instructions issued by the Central Bank regarding financial consumer protection, including regulations on advertisements for products, services, and awards offered by financial and banking service providers.

Article (17)

Insurance companies are committed to adhering to the instructions issued by the Central Bank regarding financial consumer protection, to the extent that they apply to them, including the Financial Consumer Protection Instructions for Disabled Clients, which are currently in effect.

Article (18)

The business continuity plan to address events that may adversely affect the operations of an insurance company must include, at a minimum, the following:

A. Commitment to transparency and fairness in dealing with clients.

B. Provision of an alternative and appropriate mechanism to ensure business continuity; avoiding delays in providing insurance services; and fulfilling the rights of policyholders and beneficiaries.

Article (19)

For the purposes of these instructions, any of the following shall be considered approved means of notification:

1. Written notification.

2. Email and insurance company’s electronic channels.

3. Text messages via mobile phone.

4. The electronic account created for the customer on the Sanad application.

5. Any other means approved by the Governor for this purpose.

Article (20)

The insurance is obligated to:

A. Preserve any funds or rights it holds in favor of the client.

B. Maintain sufficient records to prove its compliance with the provisions of these instructions; including a statement of services that the insurance company has refused to perform, or has declined to accept or renew, with an explanation of the reasons for the refusal or abstention; and the transactions it has terminated due to the client's breach of their obligations.

C. Publish these instructions on the company's official website.

Article (21)

A. The insurance company shall bring its affairs into compliance with the provisions of these instructions within 90 days from the date of entry into force of the provisions of these instructions.

B. Notwithstanding the provisions of paragraph (A) of this article, the insurance company shall bring its affairs into compliance no later than April 30, 2026, regarding the adoption of an electronic system or register for recording all complaints and establishing a special organizational unit to handle customer complaints, pursuant to paragraphs (B and C) of Article (11) of these instructions.

Article (22)

The governor may issue the decisions necessary to implement the provisions of these instructions.

Article (23)

The Instructions on the Rules of Professional Practice and Ethics for Insurance Companies No. (9) of 2004 and its amendments are hereby canceled.

Central Bank Board of Directors