The finance minister says the rural life insurance scheme should be refined before the payout amount is increased from the existing Nu 30,000. Responding to the Chhumig-Ura MP during the Question Hour session of the National Assembly today, the minister said talks are underway with the Royal Insurance Corporation of Bhutan to make the rural life insurance scheme exclusively for rural people.
The Chhumig-Ura MP raised the same question during the winter session of the Parliament last year, during which the government said it would increase the rural life insurance amount from Nu 30,000 to a maximum of Nu 200,000.
Until 2009, during the death of an individual, a compensation of Nu 10,000 was paid out under the rural life insurance scheme. This amount was later raised to Nu 15,000 in 2009 and further increased to Nu 30,000 in 2017.
Although the scheme is intended for rural residents, it is provided to the entire population.
“There is no problem in increasing the amount, it is essential that we do it. But we need to analyse first. This is a rural life insurance scheme, meant only for the rural population and not for those residing in the urban areas. This scheme will not make a difference to the rich people. This approach will facilitate a potential increase in the subsidy amount to Nu 100,000,” said Finance Minister Namgay Tshering.
At the moment an individual pays a rural life insurance premium of Nu 87, while the government pays the remaining Nu 108 as a subsidy every year.
According to the finance minister, the government provided a rural life insurance subsidy of Nu 67 M last year, covering almost 90 per cent of the country’s total population.
The minister said the government will refine the scheme’s focus, ensuring it benefits those residing in rural areas.
Deki Lhazom
Edited by Sherub Dorji
