Insurance contractors and government agencies
Of the positive issues decided by the state in construction contracts that are party to the necessity of insurance to cover risks of contractors, where they are requiring the contractor in the government if he wins the tender and conclusion of an insurance policy covering the damage that could arise from the project being carried out. And securing the dangers of contractors is one of the most important types of insurance engineering, and increasingly important when the beneficiary of this insurance is the government Her tender, it means that the value of the contract are often large, and the usefulness of the project to a large degree it is also important, which need to be covered by insurance. On the other hand, the insurance contracts in government contracting is an important tributary of the insurance companies in the Kingdom, especially at this particular time, where the kingdom has witnessed a large movement of construction, is the creation of parks, buildings and large industrial cities in various regions.
The risk insurance contractors under a certain length of time share for Cooperative Insurance as at that time the only national company licensed to conduct insurance business in the Kingdom, prior to the issuance of the Cooperative Insurance Companies Control in 1424. This feature is obtained by the NCCI made a monopoly on this product insurance is important, where it remained based companies at the time and all companies registered abroad and practiced insurance business in the Kingdom of proxy personal issues then cooperative lock on this preference, reinforced as well as the mainstream is issued by the Minister of Finance fails when trading on the cooperative Insurance company as the only national market at the time. This situation as a whole to make government departments do not see in securing contractors only the name for Cooperative Insurance and any document provided by the contractor does not carry the name of this company is not reliable, and this in fact has established a culture inherent to the officials of the tenders in many government agencies at different that the insurance risk Contractors can not be accepted or invoked what were not issued by this company. Problem came as well, to understand some of the system of competition, government procurement, which confirmed the preference of the national product in the contracts concluded by the State with the contractors and vendors and suppliers, and most likely those of that inventory to deal with the Cooperative Insurance is an affirmation of the commitment of contractors to deal with the products of national insurance. Some officials also thought the government tenders that the Regulations for the system of competition, government procurement, which gives the government the right to set conditions and duration of the insurance policy provided that the duration of this text as well as the position to select the insurance company should have insurance. With regard to the contractor can not but to find satisfaction and acceptance of governmental administration is going to be the company that its document acceptable to this government agency.
Against this problem, it should be aware of the parties to this relationship that, after issuance of the Cooperative Insurance Companies Control in 1424 and the subsequent establishment of insurance companies and national about now numbering thirty-company, it’d no longer for Cooperative Insurance National Company only in the market, all insurance companies consider them on an equal footing, all insurance companies, national, and the right of these companies that received the documents for insurance against the risks of the contractors the same treatment at government agencies, so the preference for a company over another on the grounds that her center systematically different from the national companies other is irregular. Moreover, this is not in the interest of the engineering insurance market does not serve until the liberation of competition or prices. I do not think for Cooperative Insurance is her remarkable successes in the market accept that these successes are attributable to such justifications, it remains in my view, the market leader as well as a place of pride for everyone.
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