The Council of Ministers has decided to make it mandatory for all public and private high-risk facilities to have third-party insurance coverage, which would likely include shopping centers, schools, hotels, factories and recreation centers.
“All high-risk facilities and activities as well as crowded places belonging to the government or private agencies, and run by private companies or establishments, are obliged to provide third party cooperative insurance,” the Cabinet said on Monday.
The Cabinet authorized the Civil Defense Council to identify such facilities and activities and ensure compliance with the law. “The system should be strictly enforced either while licensing the institution or renewing its license,” the Cabinet said.
Government departments and agencies have been told to include this new criteria for all companies winning tenders to run these facilities or activities.
Kavungal Mohamed, assistant vice president of Marsh Insurance, said the Cabinet decision would have a big impact on the Kingdom’s growing insurance market, currently estimated at SR25 billion.
“I think the decision would double the market because it covers shopping centers, schools, hotels, factories and recreation centers,” he told Arab News. “It will benefit the public because they will be able to claim for personal injuries and damages.”
Another Cabinet report — Page 2
High-risk facilities must have 3rd party insurance
