Representatives Shuaib Shaaban, Saud Al-Asfoor, Falah Al-Hajri, Mubarak Al-Tasha and Khalil Abel proposed a law to abolish Law No. 125 of 2019 pertaining to organizing the insurance unit and re-working the Insurance Department under the supervision of the Ministry of Commerce and Industry, which is included in its organizational structure, in order to rationalize government spending and preserve public money.
According to the Arab daily’s report, the proposal indicated that upon reviewing the constitution and Law No. 125 of 2019 regulating the insurance unit, the National Assembly approved the following law, which have been ratified and promulgated as:
Article One: The Law No. 125 of 2019 regulating the insurance unit is repealed.
Article Two: The Council of Ministers, based on the proposal of the competent minister, issues a decision regarding the parties to which employees and workers in the insurance unit are transferred, while preserving all their rights and job grades.
Article Three: Every provision that contradicts the provisions of this law shall be repealed.
Article Four: The Prime Minister and the ministers – each within their jurisdiction – shall implement this law, and it shall come into force from the date of its publication in the Official Gazette.
The explanatory note stated that the government has called on more than once to rationalize government spending to meet any potential deficit and address imbalances in the state’s general budget. Included in the solutions available is the abolition of unnecessary independent bodies or their merging with bodies with similar competencies.
Moreover, the proposal was submitted by law to cancel the regulation of the insurance unit, which included the establishment of an independent insurance unit, after it was deliberated that there is no need for it, especially since the recent reports of the Audit Bureau deemed the insurance unit without a clear strategy, and that according to the report the auditor approved the data for 2020/2021 an error in accounting.
In addition, the unit did not include the job titles required in the recruitment announcement, and the insurance unit wore out the general budget by allocating a special budget to manage its affairs and because of the names and inflated salaries included in its functional structure in addition to other expenses. On another note, the former Insurance Department was one of the departments of the Ministry of Commerce before the establishment of the insurance unit, fully working on organizing work in the country’s insurance system, as well as in achieving the objectives of the sector’s government spending and the preservation of public money.
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