The revised Rural Life Insurance Scheme was back in the spotlight in the National Assembly. Once again, it was about when the government will make good on its promise to increase the insurance coverage from Nu 30,000 to Nu 150,000. According to the finance minister, while the government remains committed, its implementation hinges on a bill still awaiting the National Council’s approval.
Khamdang_Ramjar MP Namgay Dorji used the Question Hour session to hold the government to account on one of its key election promises.
“The government pays a premium subsidy of Nu 108, while individuals contribute Nu 87 annually, making the total premium Nu 195. Currently, beneficiaries receive Nu 30,000 under the Rural Life Insurance Scheme. Will this amount be increased to Nu 150,000, and when will it be implemented?”
The Rural Life Insurance Scheme has been a cornerstone of Bhutan’s social protection system since 1982, covering the death of every family member. It was last revised in 2017.
Responding to the question, Finance Minister Lekey Dorji said that the government plans to implement the Scheme by next year. He informed the house that around Nu 590 M has been allocated for the scheme in the upcoming fiscal year.
“I requested that the Financial Services Bill be treated as an urgent bill; however, it didn’t go as I hoped for. But it was passed by the National Assembly during the winter session last year. I am now waiting for the Act to be adopted by the National Council. Once it is adopted, we are planning to implement the scheme by 2027.”
The Financial Services (Amendment) Bill 2025 provides the legal framework needed to restructure the insurance industry, including the terms under which the revised Rural Life Insurance Scheme can operate.
While the National Council is yet to pass the bill, the house conducted a comprehensive review of the scheme in June, last year. It provided six recommendations ranging from expanding coverage to gradual and fiscally-calibrated approach while increasing the pay-out.
Revising and raising the Rural Life Insurance Scheme fivefold was a bipartisan promise during the election campaign. Both the government and the opposition pledged to fulfil it.
Today, the scheme covers over 630 thousand members, with a total sum assured of around Nu 19bn.
Sonam Yuden
