Saudi Gazette report

JEDDAH — The Ministry of Health has said it cancelled contracts with insurance providers Bupa Arabia and Tawuniya after the two companies introduced complicated procedures for customers and delayed settlement of financial liabilities.

“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 while speaking to Makkah Arabic daily.

The official said the ministry had given the two companies a grace period to correct their status and mistakes. “After the deadline we decided to cancel the contracts with the two companies,” he pointed out.

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 explained.

Some insurance companies insist that hospitals should undergo qualification procedures before getting listed on their networks and deny their clients services of healthcare providers that are not listed.

“As a result of these conditions insured customers were denied free health services from such hospitals and clinics,” the official said.

The official said the ministry wanted to provide better health services to citizens and residents and that it would not allow insurance companies to exploit customers and prevent them from receiving free services.

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.

Adel Al-Eissa, spokesman for insurance companies, told Makkah newspaper that the ministry’s decision was related to special sections at government hospitals. “We are studying the matter in detail,” he added.