JEDDAH, 4 November 2006 -- The Education Ministry, in association with the Ministry of Health, is making efforts to provide health insurance cover to public school teachers from early next year, according to Education Minister Dr. Abdullah Bin-Obaid.

"We want to apply health insurance schemes on teachers and the Health Ministry is making a lot of efforts in this respect. We are looking forward that it would be implemented by the beginning of next year," the minister said.

Health Minister Dr. Hamad Al-Manie confirmed Bin-Obaid's statement, saying the cooperative health insurance scheme would be implemented on Saudis by the start of 2007. He said the move would increase the Kingdom's health insurance market to SR30 billion. The scheme has already been applied on the country's seven million expatriate workers.

"The insurance cover for expatriates will cost about SR10 billion. When it is applied on Saudis, the total cost of insurance cover for 23 million Saudis and expatriates will reach SR30 billion," he pointed out.

He also disclosed plans to open insurance sections at all health affairs departments in the country.

"We have appointed 100 doctors for this purpose," he said, adding that the ministry has approved 393 health service providers -- hospitals, clinics and surgeries -- in different parts of the Kingdom.

Considering the growing demand for insurance, the government has licensed 13 new insurance companies. It ends the monopoly held by the National Company for Cooperative Insurance (NCCI) in the Kingdom's insurance market.

The new companies are: Gulf Union Cooperative Insurance, Arabian Shield Insurance, Sanad for Cooperative Insurance, Saudi United Cooperative Insurance (Amity), Assurance Saudi Fransi, Al-Ahlia Insurance, Mediterranean & Gulf Insurance & Reinsurance (MedGulf), Malath Insurance, Saudi Indian Insurance, Saudi IAIC for Insurance, Allied Cooperative Insurance Group and SABB Takaful and Saudi Arabian Insurance.

Abdul Ilah Saati, professor of insurance at King Abdul Aziz University and a member of the International Insurance Association, urged the government to license yet more insurance companies to meet the market demand. He was sure there would be public confidence in the new companies.

"The activities of the newly licensed companies will be regulated by Saudi Arabian Monetary Agency and this will increase business trust in these companies," said the professor.

Hamad Al-Sayari, governor of SAMA, said the decision to license the 13 new companies had involved considerable effort including the preparation of a new law to monitor insurance firms.

"Following the law's drafting, SAMA has taken steps to organize the market, protect the rights of investors and ensure fair competition among the firms," he said.

Al-Sayari also spoke about strict procedures adopted by the agency to license the new firms. The 13 companies will have a total capital of SR2.62 billion and they will float shares worth SR936.44 million for public subscription.

Al-Sayari believed the licensing of new companies would promote fair competition, improve the quality of service and make it available at reasonable prices.

The development of health insurance, according to the latest economic report by National Commercial Bank, will result in a further SR30 billion being invested in the Saudi health sector.

P.K. Abdul Ghafour

© Arab News 2006