Since their launch in early March, Aman life insurance certificates (meaning “security” in Arabic) have been selling successfully. They aim to provide a source of income in the case of the sudden death of policyholders to the families of seasonal labourers, farmers, and other workers who do not have regular social security coverage. The certificates are available at the National Bank of Egypt, Banque Misr, the Banque du Caire and the Agricultural Bank of Egypt.
“Sales through Banque Misr have reached LE134 million for individuals and LE443 million for companies,” Akef Al-Maghrabi, vice president of Banque Misr, told Al-Ahram Weekly. “Different bodies such as clubs and companies working in sewage and water treatment, insurance, real estate and contracting have bought Aman certificates for their employees,” he added.
Al-Maghrabi said that the more people had found out about Aman, the higher the demand had become. In recent weeks, the government has embarked on an advertising campaign on television and radio to inform members of low-income groups and others who do not have fixed incomes of the value of the life insurance certificates. The three-year life insurance certificates pay an annual interest rate of 16 per cent and can be automatically renewed twice. One certificate costs LE500, and any individual can buy up to five certificates. They are available to all Egyptian citizens aged between 18 and 59. The certificates can be cashed in, with interest, after the deduction of instalments ranging between LE4 and LE20 a month depending on the number of certificates a policyholder holds.
Beneficiaries can choose between receiving a monthly pension for five or 10 years or cashing in the entire amount of the life insurance. Either way, the sum of money paid depends on whether the death of the policyholder was accidental or natural.
According to the number of Aman certificates a policyholder buys, and if the beneficiaries choose to cash in the whole sum, in cases of accidental death beneficiaries will receive between LE50,000 and LE250,000, and in cases of natural death between LE10,000 and LE50,000. Monthly pensions in cases of natural death start from LE200 to LE1,000 for five years, or from LE120 to LE600 for 10 years. Al-Sayed Al-Kassir, chairman of the Agricultural Bank of Egypt, told the Weekly that “the bank has sold Aman certificates valued at LE153 million to various bodies, including the National Council for Women, water companies and sanitation firms.”
Banque du Caire Vice President Hazem Hegazi said 17,000 individuals had bought Aman certificates valued at LE21 million, and other bodies had paid a total of LE176 million for life insurance certificates.
By earlier this week, the National Bank of Egypt had sold 55,000 Aman certificates for LE72 million, according to statements by the bank's vice president.
