The Health Insurance Organisation was established by virtue of the Law No 89(I) 2001 as a legal entity governed by public law for the implementation of the General Healthcare System (GHS) in the Republic.

It is governed by a Board of Directors in which the government, the employers, the employees and the patients are represented. In accordance with the General Healthcare System Laws of 2001 to 2017 the Organisation is the executive authority for the implementation of the GHS. The Law stipulates the philosophy, system-architecture and main features of the GHS.