Article (1): Naming

These instructions are called (Instructions on the Principles of Professional Practice and the Controls Necessary for Insurance Companies to Deal with Their Clients Fairly and Transparently of 2025) issued pursuant to the provisions of Paragraph (J) of Article (24) and Paragraph (B) of Article (109) of the Insurance Business Regulation Law No. (12) of 2021 considered effective as from 10/04/2025.

Article (2): Definitions

1.  The terms and expressions set in these instructions shall have the meanings specified for them in Article (2) of the Insurance Business Regulation Law No. (12) of 2021 unless the context otherwise denotes.
2. For the purposes of these instructions, the term “client” means any person to whom the company offers or provides its products or services.

Article (3): the insurance company’s commitment towards its clients

The insurance company is committed to transparency and fairness in its dealings with its clients, whether this dealing is done directly with the insurance company or through any of the insurance service providers with whom the company has contracted for this purpose. In fact, this commitment begins from the stage before concluding the insurance contract and continues until the contract ends and all obligations arising from it and any other insurance services related to the insurance contract are fulfilled provided that the following is taken into account:

1. Considering the client’s requirements and needs when developing, marketing and selling insurance products as well as taking adequate measures to mitigate any risks related to selling insurance products or services that do not meet client needs.
2. Providing clients with accurate, clear and sufficient information about the insurance contract as well as the insurance coverage provided thereunder.
3. Providing clients with appropriate advice and counsel enabling them to understand the insurance products and services as well as the coverage they provide.
4. Obtaining only the data necessary to provide the service, explaining the justification for obtaining the same, if possible, and using such data legally other than being in accordance with applicable legislation while taking all measures and procedures to ensure data protection and confidentiality.
5. That all communications between the company and its clients must be duly documented.

Article (4): Policies

The insurance company’s board of directors is committed to adopting the following policies, at a minimum, which will be revisited annually or as necessary and to monitoring compliance with their implementation:

1. Claims Settlement Policy.
2. Data Protection and Confidentiality Policy in accordance with applicable legislation.
3. Client Complaints Handling Policy and the Procedures Required to Address Them.

Article (5): Continuity of the Insurance Offer

The insurance company is committed to continue providing the insurance offer presented by it to the client for the period specified therein. Yet, and if the period is not specified, then it must adhere to the offer for a period of (15) days from the date of its submission.

Article (6): Insurance Application

1. The insurance company shall be bound by all of the following when preparing the insurance application form:
   • Formulating the questions and information contained in the insurance application form in clear, understandable language and allow the client sufficient time to review the same and to clearly answer all inquiries contained therein.
   • Explaining the importance of providing information related to the subject insure, type of insurance or insurance branch requested in the insurance application form for the purpose of issuing an insurance contract in addition to drawing the attention of the client to the need to accurately and adequately disclose this information and other essential information as well as explaining the legal consequences of not disclosing the same or disclosing information that does not reflect the real situation.
   • That it must include all the information necessary for risk assessment.
   • Disclosure of any other services provided by the insurance company separately from the insurance services together with the cost of providing them.
   • To cause the insurance application form to include a phrase advising the client to retain documents and communications exchanged between him/it and the insurance company.
2. The insurance company shall be committed, after receiving the insurance application, to do the following:
   • Ensure that the application submitted to a client to conclude an insurance contract is completed and signed directly by the client or their representative.
   • Obtain the client’s confirmation of the information and data provided as well as any additional data within (10) days of receiving or becoming aware of them if the company agrees to receive the application submitted on forms other than those approved by it.
   • Educate the client on the methods and techniques for preventing the occurrence of the insured risk or mitigating the effects of the risk in case of occurrence.
   • Not to reject the insurance application or the insurance contract renewal request without justification.
   • Adhere to sound technical principles when pricing the insured risk and not to exaggerate or undercut in a way that negatively impacts the company itself or other insurance companies.
   • Not to discriminate between insurance company clients, their terms or the benefits of insurance coverage unless justified including reasons based on technical or actuarial grounds.
   • Provide the client with a copy of the insurance application immediately upon completion.

Article (7): Client Creditworthiness Assessment

The insurance company is committed to adopting internal procedures to assess client creditworthiness before selling savings insurance and investment-linked insurance products. These procedures should include, at a minimum, all of the following:

1. Establishing a mechanism for assessing client creditworthiness and the appropriate insurance product.
2. Establishing a clear mechanism for dealing with clients whose financial creditworthiness is not compatible with the insurance product.
3. Effective and ongoing supervision of insurance agents and sales staff to enable them to analyze client needs and acceptable risk levels.
4. Maintaining records to facilitate the review of compliance with the company’s approved procedures.

Article (8): Insurance Contract

1. When concluding an insurance contract, the insurance company shall adhere to all of the following:
   • Using simple and clear language as well as adhering to the accuracy of the information contained in the contract to enable the client to understand its terms and conditions.
   • Not to include anything in the insurance contract indicating that it has the right to amend any of the contract terms at its sole discretion without the client’s consent.
   • To cause the insurance contract to include the insured sum, the insurance premium value, commissions or fees associated with the service, whether at the client’s or the insurance company’s expense and any other fees and amounts. The deductible amount shall be stated in the insurance contract schedule or in a prominent place on the first page of the contract.
   • To highlight any exclusions and conditions that materially affect the client’s right to the insured sum or compensation and/or that lead to the invalidation of the insurance contract in large distinctive font. Yet, the client shall sign adjacent to the exclusions indicating that it/he has read and agreed to their contents.
   • To include the following information in life insurance contracts:
     • Cancellation clause.
     • Disclosure of the return, whether being guaranteed or unguaranteed.
     • Method of allocating the premium.
   • The contract shall include the rights and obligations of the parties as well as the consequences of breaching contractual obligations in addition to the circumstances in which the contract may be cancelled together with the date and time of payment in case of cancellation.
2. Any amendment to the insurance contract shall be made in endorsements to be made by the insurance company after the insured has approved such amendment.
3. The insurance company shall be committed to provide the client with a copy of the insurance contract and its appendices immediately upon conclusion of the contract and shall retain a copy signed by both parties or their legal representatives.
4. The coverage note shall remain in effect before the issuance of the insurance contract until the expiry of the period specified therein or until the issuance of the insurance contract, whichever comes first.

Article (9): Insurance Contract Renewal

Upon renewing an insurance contract, the insurance company shall be committed to do all of the following:

1. To send a renewal notice to the client in accordance with approved service methods at least one month prior to the contract expiration date.
2. To ensure that insurance contract renewal notices contain an alert to the client regarding the need to disclose any necessary information or any material change that may affect the insurance company’s decision to continue accepting the risk, prices or terms it initially accepted whether the change occurs after the commencement of the insurance contract or after its last renewal.
3. To renew the contract in accordance with the terms and premiums set in the renewal notice unless the insurance company provides any additional information prior to accepting the renewal offer that would affect any of the terms or premiums agreed upon with the client.

Article (10): Cancellation of Insurance Contract

1. In case of cancellation of the insurance contract, then the insurance company shall notify the client at least (30) days prior to the cancellation date unless otherwise agreed.
2. Without prejudice to the provisions of the instructions for applicable life insurance policies, the insurance company shall deduct the following from the amount refunded to the client in case of cancellation of the insurance contract:
   • The medical examination expenses if performed for the client for the purposes of concluding the insurance contract.
   • Any fees, duty stamps or any amounts incurred by the company up to the date of cancellation.
   • Changes in the investment unit price when calculating the amount refunded to the client for investment-linked life insurance contracts.
3. In case of the expiration of the insurance contract for any reason, then the insurance company shall undertake the following:
   • To refund any premiums or expenses due to the insured or the beneficiary within a period not exceeding (30) days from the expiration date.
   • To provide all necessary documents and information to the insured or the beneficiary upon request.

Article (11): Claims Submission and Settlement

1. The insurance company shall be committed to all of the following:
   • To use clear and simple language in the claims submission form it adopts and to clearly specify the information required to be included by the claimant.
   • To adopt specific forms to specify all papers and documents necessary for claims settlement depending on the type of insurance. Yet, these forms shall be provided free of charge and shall outline all available procedures and means including the possibility of appointing a loss adjuster.
   • To guide the claimant in terms of completing the claims form and alerting it/him to the necessity of obtaining proof of having visited the company and submitted a claim.
   • To ensure that the employees responsible for claims settlement have the appropriate experience and qualifications as well as to continue their training as needed.
2. B- When settling claims, the insurance company shall be committed to the following:
   • To promptly respond upon receipt of the claim and to ensure that the necessary documents, papers and information are complete in addition to notifying the claimant if any missing information is required.
   • To notify the claimant of the claim’s acceptance or rejection in accordance with approved service methods and to state upon the reasons for the rejection in writing.
   • If the claim is accepted and the amount of the same is agreed upon, then the insurance company shall be committed to providing the claimant with information showing the compensation value, the basis for calculating it and the expected date of receipt.
   • To inform the claimant of any developments related to their claim upon request.
   • The client shall not sign a clearance to the company until the agreed upon compensation amount has been paid.
3. The insurance company shall be fully responsible for the coverage provided for in the insurance contract and shall pay the obligations arising therefrom regardless of the extent of its coverage under reinsurance arrangements, the reinsurer’s recognition of the same or the reinsurer’s delay in paying its share.
4. The insurance company shall not deduct any amount from the value of the compensation due without a legal basis.
5. The insurance company shall be committed to implementing final definite court orders related to the insurance contract within (7) business days from the date on which they become definite.

Article (12): Handling Complaints

The insurance company be committed as follows:

1. To receive and handle complaints from clients while taking the following into account:
   • Ensuring the effectiveness of the client complaints handling policy in enabling the company to conduct its business with responsible professional conduct, achieving the best interests of clients at all stages of their dealings with the insurance company and maintaining written internal operating procedures for their implementation.
   • Establishing appropriate mechanisms for receiving complaints through the main office, all its branches and its points of sale in addition to complaints received from the Central Bank.
   • Refraining from imposing any restrictions or conditions that would hinder the client’s right to file a complaint and to refrain from subjecting the complaint to any commissions or fees.
   • Informing clients of their right to file a complaint through the following:
     • Providing brochures and leaflets at the insurance company’s main office and branches or through the company’s website in addition to social media, if available.
     • Informing illiterate clients of their right to file complaints.
     • Providing the necessary means and tools to enable clients to file complaints including the following:
       • Regular mail.
       • Email and the insurance company’s electronic channels.
       • A toll-free phone line, if available, provided that calls are recorded and the client is notified accordingly.
       • Personal attendance.
       • Complaint boxes located at the main office and in all insurance company branches.
       • Facsimile.
2. Adopting an electronic system or register to record all complaints received while taking the following into account:
   • Recording complaints in a manner that ensures a reference number is assigned to each complaint. This number shall be used in all communications between the insurance company and the complainant as well as in any communications with the Central Bank regarding the complaint.
   • Keeping the complaint in a dedicated register and providing the client with confirmation of receipt of the complaint which must include the following information:
     • Complaint reference number.
     • Complainant’s full name.
     • Complainant’s contact information.
     • Subject of the complaint.
     • Date of receipt of the complaint.
     • Phone number or email address of the relevant department to follow up on the complaint.
   • Recording all communications, procedures and documents related to the complaint in the system or electronic record.
   • Retaining all information related to the client complaints entered and saved in the system or electronic record for a period of (5) years from the date of completion of processing or according to the archiving periods stipulated in the relevant legislation – if any – whichever is longer.
3. Establishing a dedicated organizational unit to handle and process client complaints. This unit should be commensurate with the company’s business size, the number and variety of products and services and the number of complaints. This unit must adhere to the following:
   • Providing the unit with appropriate staff, training and qualifications to handle client complaints efficiently and effectively as well as ensuring they have sufficient knowledge of all services and products provided by the insurance company as well as familiarity with applicable legislation related to the rights of policyholders and beneficiaries.
   • Handle all complaints without discrimination or differentiation between clients and/or insured people and beneficiaries in a clear and effective manner that achieves justice for clients and/or insured people and beneficiaries.
   • To appoint a liaison officer with the Central Bank and a replacement from the unit’s staff, determine the means of communication between them and inform the Central Bank of any amendments or changes that may be done.
   • Not to link the unit to the service of receiving and responding to client inquiries regarding the insurance company’s services and products.
4. D- To follow-up and review of complaints as follows:
   • To evaluate and process the complaint and make an appropriate decision regarding it. Yet, the client shall be notified of the decision within (10) working days from the date of receipt of the complaint and the completion of all necessary documents for its review. However, this period may be extended for a similar period if the nature of the complaint warrants the same and the complainant shall be informed of the justifications for such extension.
   • To notify the complainant of the final outcome of the complaint submitted in accordance with approved notification methods. This shall be communicated in simple and easy-to-understand language avoiding ambiguity or misinterpretation while it shall not contain specialized technical terms that are incomprehensible to the complainant.
   • To conduct a comprehensive periodic analysis of all client complaints received to identify complaints that could affect the insurance company’s reputation and financial position, determine the frequency of such complaints and then initiate corrective and preventive measures to avoid their recurrence in the future.
   • The unit shall submit a periodic report to the department responsible for compliance at the insurance company together with a copy thereof to senior management. The report shall include client complaints made against the insurance company indicating the number of complaints received, the number of complaints resolved and the amount of compensation paid. Yet, the Central Bank shall be provided with an annual report on this matter.
   • To include a summary of the results of the complaints evaluation report in its annual report and on its website together with indicating the number of complaints received and complaints resolved by insurance category.

Article (13): Filing a Complaint to the Central Bank

The client may file a complaint to the Central Bank after consulting the insurance company in the following cases:

1. The insurance company’s response to the complaint was unconvincing.
2. The insurance company did not respond to the client within the maximum period specified in these instructions.
3. The insurance company refused to receive the complaint.

Article (14): Conflict of Interest

The insurance company shall be committed to taking adequate and appropriate measures to avoid any potential conflict between its clients’ interests and its own as follows:

• Ensuring that the incentive and reward policies approved for its employees do not lead to inappropriate sales, behavior that harms the client’s interests or the provision of impartial advice.
• Working to manage and properly disclose identified conflicts of interest in accordance with the policies approved by the insurance company.

Article (15): Insurance Company Website

The insurance company shall be committed to all of the following:

• Ensuring that all information related to the products and services provided through its website is presented clearly, accurately and up-to-date.
• Committing to transparency in educating clients and informing them of the nature of transactions conducted via electronic means as well as explaining the risks of these transactions and the obligations arising from them together with taking into consideration the development of clear guidelines and instructions in particular.

Article (16): Advertising and Publicity

Insurance companies shall comply with the applicable instructions issued by the Central Bank regarding financial consumer protection to the extent applicable to them including controls on advertising for products, services and rewards offered by financial and banking service providers.

Article (17): Clients with Disabilities

Insurance companies shall comply with the instructions issued by the Central Bank regarding financial consumer protection to the extent applicable to them including the applicable financial consumer protection instructions for clients with disabilities.

Article (18): Business Continuity Plan

The business continuity plan for addressing events that may negatively impact the insurance company’s business must include, at a minimum, all of the following:

• A- Commitment to transparency and fairness in dealing with clients.
• Providing an alternative and appropriate mechanism to ensure business continuity, ensure no delays in providing insurance services and fulfill the rights of insured people and beneficiaries.

Article (19): General Provisions

For the purposes of these instructions, any of the following are considered approved notification methods:

• Written notification.
• Email and the insurance company’s electronic channels.
• Text messages via mobile phone.
• The client’s electronic account created on Sanad application.
• Any other method approved by the Governor for this purpose.

Article (20): General Provisions

The insurance company shall observe the following:

• To preserve any funds or rights it holds for the benefit of the client.
• To maintain sufficient records to demonstrate its compliance with the provisions of these instructions including a statement of the services the insurance company has refused to perform, declined to accept or renewed along with an explanation of the reasons for such refusal or declination and the transactions it has terminated due to the client’s failure to fulfill his/its obligations.
• To post these instructions on the company’s website.

Article (21): General Provisions

1. The insurance company shall be committed to adjust its status in accordance with the provisions of these instructions within (90) days from the effective date of these instructions.
2. Notwithstanding the provisions of Paragraph (A) of this Article, the insurance company shall be committed to adjust its status by no later than April 30, 2026 with regard to adopting an electronic system or register to record all complaints and establishing a special organizational unit responsible for handling client complaints in implementation of the provisions of Paragraphs (B and C) of Article (11) of these instructions.

Article (22): General Provisions

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

Article (23): the Instructions on the Rules of Practicing the Profession and its Ethics for Insurance Companies No. (9) of 2004 and its amendments are hereby cancelled.