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Saudi Arabia: Health ministry cancels contract with two large insurers

Source: Middle East Insurance Review | Sep 2018

The Saudi Ministry of Health announced that it has cancelled contracts with the kingdom’s largest insurance providers –  Bupa Arabia and Tawuniya.
 
“We have taken action against Bupa and Tawuniya after noticing certain negative practices,” said an official at the Department for Contacts, Public Relations and Awareness, speaking to the Arabic daily, Makkah. His comments were in turn carried by Saudi Gazette.
 
According to the news report, the official said the ministry had given the two companies a grace period to correct their position. “After the deadline, we decided to cancel the contracts with the two companies,” he said.
 
He said the two companies had been asking customers to produce their IDs and insurance cards, and sign a form to obtain health insurance services, although the IDs and insurance policies can be verified electronically.
 
“These difficult procedures resulted in denying customers health coverage. The long procedures to get approval and the delay in obtaining approval are other reasons for cancelling the contracts,” the official said.
 
Mr Adel Al Essa, spokesman for insurance companies, told Makkah that the ministry’s decision was related to special sections at government hospitals. “We are studying the matter in detail,” he added.
 
Bupa Arabia has confirmed the cancellation of its contract with the Ministry of Health, while noting that the move will lead to suspension of insurance services for entities affiliated to or owned by the ministry.
 
“The insurance services provided to corporate clients and their families will continue as usual in line with the contracts signed,” Bupa said in a statement.
 
“Cancelling the contract inked with the Ministry of Health will not likely weigh on the existing network,” the statement said. M 
 
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