PRIME MINISTERIAL EDICT NO. 1/1995 WITH RESPECT TO ENFORCING THE INSURANCE BRANCH ON SELF-EMPLOYED INDIVIDUALS, LIBERAL PROFESSIONS AND INSURANCE BRANCH ON EMPLOYERS*

The Acting Prime Minister:

Having examined the Law on Social Insurance promulgated by Decree-Law No. 24 of 1976, particularly article 1 thereof, as amended; And Prime Ministerial Edict No. 12 of 1979 with respect to Family Allowances Scheme; And Order of the Minister for Labour and Social Affairs No. 1 of 1994 with respect to amending Ministerial Order No. 8 of 1988 with respect to Voluntary Insurance; And upon the submission of the Minister for Labour and Social Affairs, Chairman of the Board of Directors of the General Organisation for Social Insurance; And with the approval of the Council of Ministers, HEREBY ORDERS :

Article 1

For the purpose of applying the provisions of this Edict, the following expressions shall have the meanings indicated against each:

General Organisation: The General Organisation for Social Insurance established by virtue of Decree-Law No. 24 of 1976.

The Insured: Every person who is included in the categories indicated in Article 2 and 3 of this Edict of both sexes.

This Insurance: Insurance in accordance with the provisions of this Edict.

Monthly Income: The hypothetical monthly income which the insured chooses within the limitations indicated in Article (6) of this Edict, and on the basis of which pays the monthly contribution to this insurance and shall collect all his insurance entitlements according to the provisions set forth in this Edict and the Law of Social Insurance as the case may be.

Natural Disability: Every disability which occurs to the male insured before reaching the age of sixty or the female insured before reaching the age of fifty five, which may prevent totally and permanently the insured in accordance with this Edict from engaging personally in his profession or business. Such disability shall be proven by a resolution from the relevant Medical Committee or the Appeal Committee referred to in the Law of Social Insurance as the case may be.

Article 2

There shall be applied voluntarily on Bahrainis the insurance branch for self-employed individuals, and liberal professions and insurance branch for employers referred to in Article 1 items 5 and 6 of the Law on Social Insurance and particularly the categories indicated in Article 3 of this Edict, all of which shall be subject to the provisions of old age, disability and death insurance branch. Pensioners and their beneficiaries shall benefit in accordance with the provisions of Family Allowance Sheme referred to in Article (1) item 7 of the above Law on Social Insurance.

Article 3

The provisions of this Edict shall be applicable to Bahrainis inside and outside the State of Bahrain who are classified under the following categories:-

The provisions of this Edict shall not be applicable to the following categories:-

Article 4

For the purpose of the insured's benefit in accordance with the provisions of this Edict, he shall fulfil the following:-

An Order from the Minister for Labour and Social Affairs may be issued to amend the aforesaid age when the necessity arises.

Article 5

There shall be allocated in the General Organisation's Fund a special account for the insurance provided for in this Edict and its resources shall comprise the following sources:-

The financial evaluation of this insurance shall be examined in accordance with the approved GOSI regulations established as per Article 15 of the Law on Social Insurance for its Fund.

Article 6

The insurance contributions due to be paid by the insureds who benefit from the provisions of this insurance shall be paid at the rate of the two shares of the employer and the insued provided for in the Law on Social Insurance branch on old age, disability and death at the rate of 12% of the selected hypothetical monthly income on the basis of which he is insured against old age, disability and death in addition to the Family Allowances Scheme.

The hypothetical monthly income at the beginning of the contribution shall be at a minimum of BD. 200/- or a maximum of BD. 500/- The insured may alter the aforesaid monthly income either by increasing or decreasing it in the region of 5% annually. He shall not be permitted to increase if his monthly income amounts to BD. 1000/- and not to reduce it to less than the aforesaid minimum.

The alteration of the hypothetical monthly income shall be effected from the following 1st day of January to the submission of application of the insured in writing.

The percentage and limits given in this Article may be amended by an Order from the Minister for Labour and Social Affairs. Such Order shall indicate the effective date of such amendment.

Article 7

Societies and similar organisations to which the insured is affiliated to, may contribute to the value of the monthly contributions due from all their insured members in accordance with the provisions of this Edict.An Order of the Minister for Labour and Social Affairs with the prior approval of the Board of Directors of GOSI in co-ordination with the Societies and similar organisations referred to in the preceding Article shall determine the method of distributing such contribution and payment dates.

Article 8

An insured who is subject to the provisions of this insurance may request the increase of the contribution period by adding a previous employment period up to five years provided that such employment period has been served after the age of eighteen. The prescribed amount due shall be paid to GOSI in accordance with Article 36 of the Law on Social Insurance, upon a written application using the prescribed form for this purpose.

Article 9

The contribution period or periods to this insurance and similar periods, the previous contribution period or periods shall be considered continuous in calculating the periods eligible for old age, disability and death pensions and the lumpsum amount in accordance with the Law on Social Insurance whether compulsory or voluntary.

The benefits of the insured and his beneficiaries shall be settled according to the contribution period or periods resulting from the application of this Edict in isolation from the previous period or periods. The final pension or the lumpsum compensation shall be determined by the total amount of the two pensions or the two lumpsums resulting from calculating each period individually as the case may be.

Article 10

Without prejudice to the provisions of this Edict, the rights of the insureds and their beneficiaries under its provisions whether related to the old age, disability or death pensions and the lump sum compensation shall be settled according to the conditions and provisions provided for in Chapter Four of the Law on Social Insurance and its implementing orders and subject to what is provided for in Prime Ministerial Edict No. 12/1979 with respect to Family Allowances Scheme.

Article 11

An insured's contribution shall, in accordance with the provisions of this Edict, be considered expired automatically in the following two cases:-

The insured shall be notified by means of a registered letter sent to the address indicated in the application form of this insurance or the address which he specifies later in writing.

Article 12

The death grant and funeral expenses shall be payable if this insurance is terminated due to the insured's death in accordance with the terms, procedures and value indicated in the Law on Social Insurance and the Ministerial Orders for implementing it. In case of the insured's death within one year from the termination date of this insurance, the death grant shall be paid in a sum equivalent to six times the pension supposed to be paid to the insured in addition to the funeral expenses herein above referred to.

Article 13

In the case where the insured's contribution to this insurance has been terminated in accordance with the preceding Article 11 item (2) owing to cessation of payment of the contributions, he shall not benefit from the provisions of this Edict once again except if he accepts and within the three months following the months referred to in item 2 by a written confirmed date undertaking stating that the resumption of contributing to this insurance shall be from the cessation date, and consequently, he undertakes to repay all arrears of contributions to GOSI in addition to the interest accumulated from the cessation date until full and final settlement either in one lump sum or by instalments in accordance with the Law on Social Insurance and the implementing Ministerial Orders.

If the insured submits an application to resume this insurance within the three months referred to in the preceding paragraph and fails again to pay the insurance contributions for another period of six consecutive months, the insurance shall be cancelled completely from the default day and shall not be eligible to contribute voluntarily to this insurance again. The insured shall benefit from the provision set forth in para 4 of Article 37 of the Law on Social Insurance, if he fulfils the minimum contribution period provided for in the aforesaid Article 37 if he suffers a disability or death within one year from the insurance expiry date.

Article 14

The insured who contributes to this insurance according to the provisions of this Edict for at least five years and is no longer subject for any reason to this insurance may continue voluntarily in the insurance in accordance with the Order of the Minister for Labour and Social Affairs No. 1 of 1994 amending the aforesaid Ministerial Order No. 8 of 1988, provided that, he shall submit a written application to GOSI, within the following six months of not being subject, undertaking to pay the insurance contributions due to GOSI together with the accumulated interest either in one lump sum or by instalments in accordance with Articles No. 30 and 31 of the Law on Social Insurance.

Article 15

The insured, who contributes to the voluntary insurance according to the aforesaid Order of the Minister for Labour and Social Affairs No. 1 of 1994 shall not combine between contributing according to the aforesaid Ministerial Order and the contributing to this insurance, thus contribution shall be in accordance with whichever as desired by the insured by a written confirmed date application from him.

If the insured elects to continue contributing to the voluntary insurance referred to in the preceding Article and then it is decided to apply this insurance compulsorily on persons subject to its provisions, the latter shall be applicable thereto.

In case where the insured has been transferred from the voluntary insurance referred to in the preceding two paragraphs to this insurance, he shall be transferred with the same hypothetical income on the basis of which the contribution to this insurance is paid if it is more than BD. 500/- and less than BD. 1000/- and if the aforesaid income is less than BD. 500/- he shall be entitled to contribute on such basis or increase it by a maximum of BD. 500/- with the right to amend it in accordance with the provisions of Article 6 of this Edict.

Article 16

The provisions related to the additional amounts and interest provided for in the Law on Social Insurance shall be applicable with its terms and conditions to the insureds subject to the provisions of this Edict and their beneficiaries.

Article 17

The insured who violates the provisions of the Law on Social Insurance, the provisions of this Edict and the implementing Ministerial Orders shall be liable for the penalties provided for in the Law on the Social Insurance.

Article 18

The provisions of the Law on Social Insurance shall be applicable to the insureds and their beneficiaries unless otherwise stated in this Edict.

Article 19

The Minister for Labour and Social Affairs shall issue the implementing Orders to execute the provisions of this Edict.

Article 20

This Edict shall be published in the Official Gazette and shall come into force as from the first day of the month following its publication.

Khalifa bin Sulman Al Khalifa Prime Minister

Issued: on 20th Shaaban, 1415 Hijra, corresponding to: 21st January, 1995