Saudi authorities have warned companies in the kingdom to ensure that they provide health insurance to all their employees to avoid facing penalties.
The Council of Cooperative Health Insurance (CCHI) announced new punitive measures, including halting of computer services and fines, against the companies who do not comply.
Yasir Al-Maarik, spokesman of CCHI, added that the services for the firms that fail to provide health insurance to Saudi and non-Saudi employees and their family members will be suspended.
Such firms will have to pay the required installments and fines equal to the value of insurance for each individual, the Saudi Press Agency (SPA) reported.
All private sector companies are required to provide health insurance to their Saudi and expat employees as well as their dependants - including spouse, unmarried daughters and male children under the age of 25.
Meanwhile the CCHI has also unveiled new procedures aimed at increasing the regulatory supervision of private sector companies.
A mandatory electronic link now has to be completed that guarantees health insurance to all employees.
While the issuance and renewal of residency for expatriates is linked to the provision of health insurance, the lists of Saudi employees registered in the social insurance has also recently been linked with the National Information Centre to identify any discrepancy.
Therefore, the employer will be required electronically to provide insurance to all his employees, the report stated.
As of December 10, the number of insured persons in the kingdom stood at 10,801,693 including over one million Saudi employees along with over 1.77 million of their dependants. Meanwhile over six million expatriate employees were insured along with over 1.9 million of their dependants.
The new regulations are expected to add another two million people to the overall number of insured persons by the end of 2019, the SPA report added.