The Bhutan Construction and Transport Authority (BCTA) saw a rise in the number of insured vehicles this year. Nearly 44 per cent of the country’s total vehicles are now covered by insurance. The Authority attributes the increase to stricter enforcement measures and public awareness campaigns by insurance companies.
The total number of insured vehicles increased from 43,904 in 2023 to 54,826 by November, this year. This is according to data from Royal Insurance Corporation Limited (RICBL) and Bhutan Insurance Limited (BIL).
The Bhutan Construction and Transport Authority credits this growth to stricter implementation to ensure compliance with insurance requirements.
The authority requires vehicle owners to insure their cars while renewing vehicle worthiness certificates. This has helped boost insurance coverage. Moreover, public awareness initiatives have helped educate people about the importance of insurance.
BCTA says that vehicle insurance is mandatory to protect drivers at fault from financial loss and to ensure compensation for damages caused by accidents.
Comprehensive, third-party and road transits insurance are the three types of policies. Road Safety and Transport Act mandates vehicle owners to at least have Third-party insurance for private vehicles.
The insurance companies say insurance is important to promote road safety, reduce traffic-related disputes, and ensure that accident victims are compensated for injuries or damages.
Despite the efforts, more than half of 125,000 vehicles in the country remain uninsured.
The insurance companies say that many vehicle owners remain hesitant mainly because of misconceptions, affordability concerns, and the belief that insurance is only needed for bank loans. They say that most drivers also view insurance as unnecessary, citing low-risk perceptions.
Karma Samten Wangda
Edited by Sangay Chezom
