Insurance firms may increase premium to cover treatment cost

Saudi Gazette report JEDDAH — The Health Ministry’s move to force insurance companies and people who cause accidents to bear the treatment cost of the injured has raised a big controversy. The treatment was supposed to be given free of charge by the government in accordance with the country’s Basic Law of Governance. Experts believe that this directive would encourage insurance firms to increase premiums. Dr. Abdul Aziz Al-Shabrami, a former judge, said Article 31 of the Basic Law has specified that the government would provide healthcare to all citizens. “The Basic Law of Governance is the country’s highest law and it should not be nullified by lower laws,” Al-Shabrami told Al-Madina Arabic daily. He said the ministry’s new move would encourage insurance firms to double their premiums to cover the cost of accident treatment. “The move is tantamount to canceling free treatment of accident victims at government hospitals,” he said. Legal consultant and lawyer Ahmed Ajab Al-Zahrani said the ministry’s move would have a variety of impact. First of all, it would increase insurance premiums on individuals and private companies. “As a result Saudis will suffer the most by the new directive.” Awad Al-Harthi, also a legal consultant, said the ministry’s move would cancel free treatment to citizens and that responsibility would be transferred to insurance firms. He said he expected insurance companies to raise their premiums soon following the ministry’s directive. He urged the ministry to keep a close watch on insurance companies to prevent them from misusing the directive to realize their vested interests. The ministry said the medical and health care expenses of road accident victims would be borne by the person who causes the accident. “If the person has his vehicle insured then the expenses will be borne by the insurance company,” it added. “The decision applies to Saudis and non-Saudis alike. There will be consequences for those who refuse to comply with the rules,” said a ministry official.