To support families to offset financial burdens during difficult times, the Royal Insurance Corporation of Bhutan Limited (RICBL) launched the National Life Insurance Policy on 20 September. This is to protect families from undue financial burden when losing a sole bread earner in the family through the insurance scheme.
National Life Insurance will provide a family member with risk coverage of Nu 100,000 for payment of Nu 700 per member annually which comes to about Nu 58.33 in a month and Nu 1.91 per day. This policy is open to all Bhutanese above the age of five.
The chief executive officer (CEO) of RICBL, Karma, said, that more than 80% of the Bhutanese population would benefit from this scheme.
More than a profit motive, the CEO said, “The objective of launching the National Life Insurance scheme is a corporate responsibility,” adding, that it is unnecessary to make money.
“The launch of National Life Insurance Policy is purely RICBL’s support to the people of Bhutan and the country’s economy,” the CEO asserted, offering a mechanism of resilience to the public.
In a tragic event, when families become disoriented due to the loss of family members and lack of resources, “RICBL want to comfort bereaved families and put them in a better place,” the CEO added.
However, the National Life Insurance Policy is different from the Rural Life Insurance Scheme where a family member pays just Nu 87 annually by providing a sum of Nu 30,000 as the life insurance for the deceased.
The premium of Nu 87 per family member is paid annually by all Bhutanese eight years and above, where the sum insured is Nu 30,000 as the life insurance for the deceased to help ease such a financial burden on the family members. The annual premium collection from members is Nu 195, of which an individual should pay Nu 87, while the government pays the remaining Nu 108 as a subsidy every year.
The Rural Life Insurance Scheme was first introduced on 1 January 1982 covering the entire population. The scheme will be reviewed every three years and the government informed that the revision of the scheme is being worked so it can be implemented soon during the last Parliament Session.
Meanwhile, the CEO of RICBL is hoping that all Bhutanese will understand this premium policy. RICBL also would partner with the government in a life insurance scheme if the government is willing.
However, the CEO said that people should understand the benefits of the product and should not wait for the government when it has a fiscal issue.
The Integrated Money Back Policy (IMBP) was also introduced by RICBL on the same day to offer clients the flexibility to choose policy terms ranging from 5 to 25 years, with regular monetary returns at specified intervals. Additionally, policyholders opting for terms of 10, 15, 20, or 25 years can avail of free insurance coverage of 1 to 5 years as an added feature.
With the Integrated Money Back Policy (IMBP), policyholders can enjoy survival benefits ranging from 20 percent to 40 percent as monetary returns. Furthermore, this policy promises a competitive annual return of 4 percent to 6.50 percent on the sum assured.
Sangay Rabten from Thimphu