Local leaders in Chhukha have raised concerns over the inconvenience of paying a premium for the Rural Life Insurance Scheme. During the recent Dzongkhag Tshogdu, they said the requirement for every member of households to pay the premium together is creating more inconvenience than the benefits its coverage offers. For villagers, it means chasing contributions from relatives scattered across the country or abroad and having to bear the amount alone when they are unable to collect.
While the annual premium is only Nu 87 per person, local leaders said, the process of gathering payments becomes a challenge, especially when the family is huge. Large households with more family members mean a huge premium amount, which has to be borne by the ones living in the village. Bongo Gup Tshering Penjor said it is particularly challenging for households run by older people, as they often remain unaware of their family members’ whereabouts.
“If the premium can be paid by individuals, it will be very convenient. Currently, issues of timely payment of premiums arise in the villages because most of the young people live far away, and only the old ones are left behind. Individual amounts may be small, but they add up for huge families when left to be paid by one person,” said the gup.
However, the Royal Insurance Corporation of Bhutan Limited’s Branch Manager in Gedu made it clear to the gathering that this payment system cannot be changed. The official added allowing family members to pay individually would not be sustainable in the long run. She said it could also lead to adverse selection.
“There was once a scheme called Drukyul Life Insurance that had to be discontinued. People who could foresee bad times paid whereas people who didn’t think alike did not pay. This is called adverse selection, and this could also happen to the rural life insurance scheme if we let families pay the premium individually. So, it is not possible,” said the Branch Manager Chencho Wangmo.
The issue was also deliberated in the National Council during the last parliament session. National Council’s Chairperson Sangay Dorji said the council had written to the RICBL office, asking if the system could be amended for people’s benefit.
“The Good Governance Committee, during the last session, submitted a report on the rural life insurance scheme after they carried out a review work for about five months. We then submitted the recommendations to whoever was relevant, like the government or their head office. This particular point was submitted to their head office,” said NC Chairperson Sangay Dorji.
However, according to the chairperson, they cannot agree or disagree with their response at the moment. He said the matter will be discussed in the winter session of parliament. If the change cannot be made, he said, other options will be explored.
Kinley Dem, Chhukha
Edited by Phub Gyem
