Riyadh - Mubasher: The Committee for Violations of the Cooperative Health Insurance Law imposed a penalty on Amana Cooperative Insurance on Wednesday for violating the rules of the insurance policy.

The company is obliged to pay SAR 12.4 million ($3.3 million), according to a bourse filing on Thursday.

The insurance firm may appeal against the decision before the Board of Grievances within 60 days from the date of notification.

The company expects that the decision would have a negative impact on its financial statements of 2017, the statement said.

Amana said that the Saudi Board of Grievances declined its complaint against the Council of Cooperative Health Insurance (CCHI) for its decision to suspend the company from issuing health insurance policies.

The Saudi-listed firm announced on 7 February that it had started to resolve its financial issues as per Article 150 of the Companies Law through a capital decrease.