As the government reviews the future of the Rural Life Insurance Scheme, many Bhutanese families are anxiously waiting for increased support. While the National Council has recommended raising the current Nu 30,000 coverage to help cover funeral expenses, progress has stalled after the National Assembly’s Economic and Finance Committee called to remove the allocated Nu 263 M, citing unclear justification and preparedness.
For many families in Bhutan’s rural pockets, the Rural Life Insurance Scheme has been a vital safety net, offering Nu 30,000 as insurance coverage in the event of death. People have to pay a premium of Nu 195, of which Nu 108 is paid by the government.
However, villagers say the rising cost of living, funeral expenses, and inflation have eroded the value of that amount.
“The current life insurance amount of Nu 30,000 is insufficient to cover funeral expenses. We would be grateful if the government could revise it to at least Nu 120,000 to 150,000. This amount would help us conduct funeral rites modestly and respectfully,” said Bal Bdr. Rai, a resident of Sarpang.
Jigme Namgyal, a resident of Tsirang said, “The current amount is too low, and it is difficult to conduct funeral rites. With the rising cost of essential items, funerals have become an expensive affair. Therefore, increasing the insurance amount would be a great help to us.”
Local leaders say that people are willing to pay a higher premium if the payout amount is increased, a request local leaders often bring to the government on behalf of villagers.
“The minimum expenditure for funeral rites ranges between Nu 200,000 and 300,000, while wealthier families may spend around Nu 400,000 to 500,000. Although shops often extend credit during these difficult times, many people are struggling to repay. They take loans and fall into debt,” said Dungmanma Tshogpa Sangay Wangmo, Lumang Gewog, Trashigang.
For now, many families continue to rely on the existing scheme but remain hopeful that the government will listen and act promptly to ease their financial burdens during life’s most difficult moments.
Last month, the National Assembly directed the Ministry of Finance to conduct a comprehensive study to assess the scheme’s feasibility within the next six months.
Considering the socio-economic challenges faced by the people, His Majesty the Fourth Druk Gyalpo introduced the Rural Life Insurance Scheme in 1982 through a Royal Kasho, covering all Bhutanese citizens aged eight and above.
Tashi Dekar, Sonam Darjay, Pema Tshewang
Edited by Kipchu
