Article 14 of the Saudi Cooperative Health Insurance Law

This is the article on violations and penalties in the Law, and it contains three paragraphs:

(a) Violation by the employer: if the employer does not subscribe, or does not pay the insurance premiums, for the worker with him to whom the Law applies and his family members covered with him under the policy, he is required to:

• pay all premiums due.
• pay a fine not exceeding the value of the annual subscription for each individual.
• and he may be barred from recruiting workers, permanently or temporarily.

The Implementing Regulations determine the body to which the premiums are paid in this case.

(b) Violation by the insurance company: if a cooperative insurance company breaches any of its obligations specified in the policy, it is required to fulfill these obligations and to provide compensation for damages arising from the breach, in addition to a fine not exceeding SAR 5,000 for each individual covered by the policy in respect of which the violation occurred.

(c) The violations committee: one or more committees are formed by decision of the Chairman of the Council of Health Insurance, with a representative participating from each of the Ministries of Interior, Labor, Justice, Finance and National Economy, Health and Commerce. The committee considers violations and proposes the penalty, and the penalty is imposed by decision of the Chairman of the Council, and the regulations determine how the committee works. A grievance against the decision may be made before the Board of Grievances within 60 days of notification of it.

The article was amended by Council of Ministers Resolution No. (246) dated 4/9/1425 AH so that the name "Ministry of Labor" replaced "Ministry of Labor and Social Affairs".

Anyone against whom a penalty has been imposed and who wants to appeal, or who has been harmed by an insurance company's breach, would do well to consult a lawyer who specializes in health insurance cases.