Close to one thousand affected individuals across the country have filed insurance claims for damages their properties sustained from the magnitude 5.5 earthquake that struck Bhutan in June this year. The two insurance companies have, so far, paid more than Nu 15 M in compensation, with assessments and settlements still ongoing. According to insurance officials, delayed reporting, incomplete documentation, and difficult terrain have slowed the process.
The earthquake that struck near Punakha damaged hundreds of structures across the country.
Eight hundred sixty-five have filed their insurance claims with the Royal Insurance Corporation of Bhutan Limited (RICBL). The company has paid out more than Nu 11.8 M following assessment of the damages reported.
The majority of the claimants were from Gasa and Khuruthang in Punakha, claiming over Nu 2.6 M, followed by Chhukha, Monggar, Paro, and Bajo in Wandue Phodrang.
Meanwhile, Bhutan Insurance Limited (BIL) registered 100 cases, out of which 46 are settled while 54 are ongoing. The company has paid over Nu 3.5 M to the affected individuals so far.
Officials from both companies said the figures reflect where property damage was most significant, and more claims are expected as assessments continue.
According to officials, many affected homeowners were not at home during the time of inspection, while others have yet to submit the necessary documents.
Officials added that many claims were reported days after the earthquake, delaying assessments. In remote areas, difficult terrain has also slowed verification.
In a written response, RICBL’s General Manager, Sonam Dendup, said, “Normally, if there are only a few claims, we can settle them within two to three working days. But during a catastrophe like the recent earthquake, where claims come from different locations at the same time, settlement may take up to a month depending on inspections and document verification.”
The financial impact of the earthquake seems to have changed public perception towards disaster insurance. According to the two companies, more homeowners are now approaching them to enquire about earthquake and property insurance.
“If you have not insured your property yet, now is the time to do so. The government and disaster management authorities have repeatedly reminded the public that Bhutan is an earthquake-prone country. Earthquake insurance is essential. Likewise, fire insurance is equally important, especially for new buildings and homes in densely populated settlements. It is always advisable to have insurance because disasters can happen at any time,” said Yeshey Lotey, BIL’s General Manager.
“The recent earthquake has really triggered our homeowners, who are even willing to go for commercial insurance. Natural calamities like earthquakes are entirely unpredictable and beyond our control, meaning that insuring property won’t prevent them from happening. Still, it would at least protect them from financial burden,” said RICBL’s General Manager.
Officials said financial preparedness is just as important as emergency preparedness and emphasised the need for timely reporting and wider insurance coverage to help families recover faster when disasters strike.
Anita Chhetri
Edited by Phub Gyem
