ESTABLISHMENT OF THE GENERAL ORGANISATION FOR
SOCIAL INSURANCE AND ITS ADMINISTRATION
Establishment of the General Organisation
General Organisation shall be established, which shall have an independent
budget, and shall be called the General Organisation for Social
Insurance and it shall possess an independent legal entity and be
subject to the supervision of the Minister for Labour and Social
Affairs and its head offices shall be in the City of Manama.
organisation shall have field offices in localities and areas to
be determined by Order of the Minister for Labour and Social Affairs
upon the recommendation of the Board of Directors.
Board of Directors
- The General Organisation for Social Insurance would have a Board
of Directors chaired by the Minister of Labour and Social Affairs.
The Board would be formed by an order of the Prime Minister and
shall consist of fifteen members as follows:
a. Eight members representing the Government as follows :-
- The Undersecretary of Ministry of Labour and Social Affairs.
- The Director General of Directorate of Legal Affairs.
- The Director General of the General Organisation for Pension
- A representative from the Prime Minister Court.
- A representative from the Bahrain Monetary Agency.
- A representative from the Ministry of Finance and National
- A representative from the Ministry of Oil and Industry.
- A representative from the Ministry of Health.
b. three members
from the employers who are subject to this Law;
c. three members from the insured workers who possess higher capabilities
in their work;
d. the Director General of the General Organisation for Social
nomination and removal of the representatives of the employers
and workers on the Board should be by the Prime Minister.
- The term of Board membership shall be three years and shall
- The Board shall hold at least one ordinary meeting each month
at the invitation of the Chairman, and shall hold extra-ordinary
meetings as deemed necessary by the Chairman or upon a request
made by at least seven members. Decisions shall be made by majority
vote in the presence of at least eight members of whom there shall
at least be a representative of each of the employers and the
- The Board may, when required, call specialist experts to participate
in its meetings who shall have no right to vote.
- The Board may form, from amongst its members a committee or
committees, for a special purpose or purposes determined by the
decision for its formation and it may invite participation by
- Remuneration of the Chairman of the Board and its members and
members of committees shall be fixed by Order of the Council of
Ministers on the recommendation of the Minister for Labour and
- The Director General shall nominate the Secretary of the Board.
Board of Directors shall have the following duties :-
- supervising the implementation of the Law, regulations and Orders
in force and taking all measures which it deems necessary to achieve
its objectives and to improve the management of the General Organisation's
- approving the administrative rules to be presented to the Minister
for Labour and Social Affairs for ratification by him;
- determining the scope of the initial implementation of the Law
and determining the implementation of subsequent stages in accordance
with Article 6 thereof;
- issuing decisions and internal rules relating to financial,
administrative and technical matters without being bound by government
principles, regulations, rules and without recourse to the Ministry
of Finance and National Economy.
- approving the accounting plan, the budget estimates, financial
reports and the final annual balance sheet of the General Organisation;
- devising the general plan for the investment of the General
Organisation's funds and approving the fields of investment;
- studying legislation concerning Social Security;
- performing other functions entrusted to it by this Law, or by
Rules and Orders made in accordance with the provisions thereof
or with any other legislative text;
- appointing an actuary or actuarial experts to investigate and
to prepare the financial situation of the General Organisation;
- any other matters which may be referred to it by the Minister
for Labour and Social Affairs or by the Director General.
approved by the Board of Directors shall be referred to the Minister
for Labour and Social Affairs within eight days thereof, and if
not accepted within fifteen days from the date of such referral,
the Board's decision thereupon shall become operative. The Minister
for Labour and Social Affairs may return to the Board decisions
with which he disagrees, and decisions so returned shall be placed
on the agenda of the following meeting of the Board. In such event,
the Board shall not maintain its original decision unless such decision
is voted for by at least 12 of the members present and entitled
funds of the General Organisation shall be used solely for the purpose
of providing the privileges, benefits, pensions and compensation
prescribed in this Law and for meeting administrative expenses in
accordance with the provisions of this Law.
Board of Directors shall not allow the annual administrative expenses
of the General Organisation to exceed 7% of the fund formed from
the paid contributions by employers and insured persons together
with the incomes derived therefrom except by Order of the Council
of Ministers in which event such expenses shall not exceed 10% of
exemption from the limitation in the preceding paragraph may be
allowed by Order of the Minister for Labour and Social Affairs during
the first two years of actual implementation.
The Director General and the Administrative Organisation
appointment of the Director General shall be by Order of the Council
of Ministers on the recommendation of the Minister for Labour and
Social Affairs, and such Order shall determine the salary and allowances
of the Director General who may be relieved from his post in the
Minister for Labour and Social Affairs shall have the authority
of a Minister for the purposes of personnel affairs of the General
Director General, employees and workers of the General Organisation
shall be subject to the laws, regulations and rules in so far as
governing the performance of affairs of government employees and
Director General shall represent the General Organisation before
the Courts of Law and communicate with others and he shall have
the following responsibilities :-
- implementing the decisions of the Board of Directors and he
shall be directly responsible to the Minister for Labour and Social
Affairs and the Board of Directors;
- managing the General Organisation and improving the methods
of work and conducting and follow-up; supervising its employees
who shall be bound to comply with his written orders, directives
- reviewing and deciding financial, administrative and technical
matters which the laws, orders and rules specify to be within
- presenting the draft budget of the General Organisation and
the final accounts to the Board of Directors within three months
from the date of the end of the Financial Year together with a
report on the management of the business of the Organisation and
an evaluation of its performance.
- notifying the appropriate authorities of the final accounts
of the General Organisation within one month after the approval
and adoption thereof by the Board of Directors;
- providing the Ministry of Labour and Social Affairs and Government
agencies, as required, with information and reports on the activities
of the General Organisation in general terms.
Director General may delegate to other employees of the General
Organisation certain of his authorities, as he may determine.
of the accounting functions of the General Organisation shall be
undertaken by financial accounts appointed from among its employees
and their names and signatures shall be notified to the Ministry
of Finance and National Economy and the Bahrain Monetary Agency;
and such accounts only shall have the authority to sign cheques
and to authorise disbursements or withdrawals for its purposes;
and for each branch of insurance separate accounts shall be maintained.The
Board of Directors shall allocate to each branch its share of the
administrative expenses and shall determine the distribution amongst
the various branches, of such revenues as do not belong to any one