In KSA health council is very active regarding health issues. Doctors and medical staff have given strict instructions regarding careful prescription issuance for curing diseases. Taking into account health and safety of residents in Saudi Arabia, Cooperative and Health insurance Council has taken an immediate decision regarding ban of five health insurance companies operating inside company. The operations of these companies comprised of health and safety insurance aspects of residents of Saudi Arabia. The main reason behind this decision is grave violation of health insurance laws, which have been ignored by these companies widely. By taking into account this crime health insurance commission has issued this notifications. According to the recent orders regarding these five health insurance companies, they are unable to issue further health insurance license to subscriber in coming six months.
Abdullah bin Ibrahim who is secretary general of cooperative health insurance commission has mentioned that supervision teams of commission have observed and obtained related evidence regarding violation of health insurance policies. By considering into account such violations, commission has banned activities of these insurance companies in order to prevent customers of these companies from future loss regarding their health safety. These companies are required to improve their policies and have to correct violating practices in order to prevent any kind of loss to general public. The commission has clearly announced that it would not remove the ban over operations of these companies until they will not remove volition clauses from operating line.
The main violations which these companies has committed comprises of denial of health insurance issuance card to general public, defected delivery of services to valued customers, issuance of insurance documents without any verification or completion of required document criteria set by health insurance commission. These companies have also violated the schedule of health insurance stipulations. These companies have issued membership cards to those individuals who are expected to violate maximum benefit level of public.
This is not end of the story, no matter above mentioned violations are more than enough to ban a health insurance company to carry on its operations but there are some other violations committed by these companies as well. These healthy insurance companies prospectus excluded guide booklet for general public. This booklet is necessary to create awareness regarding general laws regarding operations of insurance companies and related laws imposed by cabinet of KSA. This book let the client aware that what exemptions and benefits are available to them in lieu of insurance company membership policy. Moreover, some companies have committed various negligence acts regarding weak precautionary measures regarding enrollment of a candidate as member in company book list.
By putting ban or restrictions on these companies due to these violating acts will serve as alarming situation for rest of the companies operating in the Saudi Arabia. Those companies who are committing or thinking to commit any violation in future will discontinue this practice immediately after this act of cooperative health insurance council.
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