The strict enforcement of the need to have one’s vehicle insured especially while going to renew vehicle registration certificate, commonly called as “blue book” in recent months is not being well received by the people. While most vehicle owners are of the view that vehicle insurance was never made mandatory in the past, the Bhutan Construction and Transport Authority (BCTA) claims that it has always been a requirement since 1999.
According to the Road Safety and Transport Act 1999, vehicle owners in the country are mandated to have either a third party or comprehensive motor insurance.
The act also specifies that vehicle owners or drivers must present their certificate of insurance for inspection when requested by an authorised person or a police officer.
Failure to produce a valid certificate upon demand constitutes an offence and is subject to penalties.
However, a section in the act allows vehicle owners or drivers to avoid a penalty for not having their insurance certificate during an inspection if they give an assurance to present it at a designated office within 48 hours from the time of inspection.
Despite the requirement, individuals BBS talked to are still reluctant to insure their vehicles.
Tshering Lotay, a taxi driver in Thimphu said, “We are not saying that we will not pay the insurance amount, however, when the lifespan for operating taxis expire, we are provided the No Claim Bonus (NCB) mentioning that we would be given a 40 percent discount on renewing the policy after buying a new vehicle. This does not sit right with us as they give us only about two to three years validity of the NCB. If we cannot buy a new car within that period, it is said that the NCB would become invalid.”
Similarly, Thubchen Dorji, the representative of Tsirang Taxi Association said, “When accidents happen and if police assessing the damages mention that the accident occurred due to speeding, drink-driving and reckless driving, we don’t get the insurance amount. However, now if we don’t have an insurance policy, we are not getting the blue book renewed.”
“When it comes to renewing the insurance policy, insurance companies deduct the amount as soon as we fail to deposit the amount. However, when it comes to claiming insurance, there are lots of deductions,” said Dorji Wangdi, a taxi driver in Tsirang.
Meanwhile, according to the two insurance companies in the country, the Royal Insurance Corporation of Bhutan (RICB) and the Bhutan Insurance Limited (BIL), the act mandates having motor insurance and it is not them imposing the requirement of motor insurance.
Kinga Thinley, the general manager of RICB’s General Insurance Department said, “It’s not a rule that we created. It was there in the RSTA Act that individuals have to insure their vehicle either as comprehensive or third party insurance. When accidents occur and other properties are damaged, those damages and compensation are covered by the insurance.”
Sonam Tobgay, Bhutan Insurance Limited’s director said, “The entire claim is not rejected. There are conditions to it because the BCTA and the traffic have set the permissible level of consumption of alcohol as well. So long as you do not violate the permissible limit or exceed the permissible limit, you are entitled to 50 percent of the claim. Secondly, there are other deductions as well, for instance, speeding. We have certain deductions of 20 to 25 percent or for that matter, reckless driving.”
He added that deductions are also made when fitness or the certificate of roadworthiness and the registration certificate are not updated.
Meanwhile, BCTA’s Chief Transport Officer Sithar Dorji said the authority has been consistently implementing the regulation and that there are no drastic measures taken of late as claimed by the people.
He said the authority is encouraging individuals these days to obtain vehicle insurance while renewing the registration certificate.
Today, around 34,600 vehicles are insured with the RICB and around 6000 with the BIL.
Currently, there are more than 127, 000 vehicles in the country. This means almost 70 percent of the vehicles are not insured.
Sonam Yuden
Edited by Kipchu
