The Financial Regulatory Authority (FRA) has issued regulations governing insurance operations covered by the Government Fund for Insurance against Risks Arising from Medical Errors, as part of efforts to enforce the provisions of the Unified Insurance Law and the Law Regulating Medical Liability and Patient Safety.
The regulations set out a framework for determining annual insurance premiums for medical professionals and facilities based on the nature of their activities, while obliging the fund to conduct actuarial studies to ensure fair pricing and long-term financial sustainability.
Mohamed Farid, Chairperson of the FRA, said the new rules represent an important step towards establishing a sustainable insurance system that enhances patient protection and regulates the professional liability of medical practitioners and facilities on clear, insurance-based foundations aligned with international best practices.
Under the system, the fund will compensate beneficiaries for cases of death, disability, or bodily injury resulting from medical errors, in accordance with the terms of the issued insurance policy. Compensation may be provided directly by the fund or through contracts with one or more insurance companies or an insurance pool approved by the FRA.
FRA Decision No. 303 of 2025 stipulates that the fund’s board of directors must mandate an actuarial expert registered with the authority to prepare an actuarial study based on actual experience during the fund’s first three years of operation. Additional studies may be conducted whenever necessary to reassess and determine appropriate pricing.
The decision sets the annual premium for individual medical professionals at EGP 240 for general practitioner physicians and EGP 920 for specialist physicians. For dentists and physical therapy practitioners, premiums are set at EGP 160 for general practitioners and EGP 400 for specialists, while pharmacists are charged EGP 240 annually. Other licensed medical professions are subject to an annual premium of EGP 100. Newly graduated practitioners will benefit from a 25% discount during their first professional licensing period.
For medical facilities, the annual premium is set at EGP 24,000 for hospitals with up to 50 beds, with an additional EGP 500 for each extra bed. Premiums are set at EGP 9,600 for medical centres, EGP 3,600 for radiology centres, EGP 2,400 for laboratories, and EGP 1,200 for pharmacies.
Premiums were determined based on actuarial studies prepared by certified experts in coordination with the FRA, the Ministry of Health and Population, and the Federation of Medical Professions Syndicates, ensuring balanced pricing that takes into account the interests of medical professionals subject to the law.
The regulations are issued in implementation of Prime Ministerial Decision No. 3973 of 2025, which approved the fund’s statute in line with relevant legislation and executive decisions issued by the FRA.
Subscription to the fund is mandatory for practising medical professions, as well as for obtaining and renewing professional licences and licensing medical facilities.
The fund has an independent legal personality and reports to the Minister of Health and Population. It operates an official website for the disbursement of compensation following amicable settlements or final court rulings. The fund and its branches are subject to FRA supervision and are registered in the authority’s designated register.
The fund may also contribute to covering other damages resulting from medical errors, excluding cases where medical liability is absent or where fraud or deception is involved. It retains the right of recourse against parties responsible for gross negligence, those operating beyond the scope of their licences, using unlawful means, or refusing to provide emergency treatment.
The issuance of these regulations forms part of the FRA’s broader efforts to build an integrated insurance system that balances the protection of medical service recipients with the financial sustainability of the fund.
