𝐆𝐆𝐂 𝐒𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐂𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐭𝐢𝐨𝐧 𝐒𝐞𝐞𝐤𝐬 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 𝐑𝐮𝐫𝐚𝐥 𝐋𝐢𝐟𝐞 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐂𝐨𝐯𝐞𝐫𝐚𝐠𝐞

…𝒈𝒐𝒗𝒆𝒓𝒏𝒎𝒆𝒏𝒕 𝒇𝒂𝒄𝒆𝒔 𝒑𝒓𝒆𝒔𝒔𝒖𝒓𝒆 𝒕𝒐 𝒊𝒏𝒄𝒓𝒆𝒂𝒔𝒆 𝒓𝒖𝒓𝒂𝒍 𝒍𝒊𝒇𝒆 𝒊𝒏𝒔𝒖𝒓𝒂𝒏𝒄𝒆 𝒄𝒐𝒗𝒆𝒓𝒂𝒈𝒆 𝒕𝒐 𝒎𝒆𝒆𝒕 𝒄𝒖𝒍𝒕𝒖𝒓𝒂𝒍 𝒏𝒆𝒆𝒅𝒔

By Kezang Choden

The Good Governance Committee (GGC) held a stakeholder consultation with officials from the Royal Insurance Corporation of Bhutan Limited (RICBL) to discuss the Rural Life Insurance Scheme. During the meeting, RICBL provided a detailed overview of the scheme’s current operations. The presentation addressed key areas, including the mechanism for premium collection, the timeline for processing claims, and initiatives aimed at enhancing public awareness and outreach. Both the People’s Democratic Party (PDP) and the Bhutan Tendrel Party (BTP) had pledged to increase the Rural Life Insurance amount from Nu 30,000 to Nu 150,000. In the first session of the third Parliament, Minister of Finance Lyonpo Lekey Dorji reaffirmed that the government’s pledge to raise the Rural Life Insurance coverage is still a work in progress.

The GGC has successfully concluded its stakeholder consultation on the Rural Life Insurance Scheme, which was last revised in April 2017. The consultation began on March 29, 2025, and concluded on April 7, 2025. The committee engaged with rural communities, local leaders, relevant officials, and other key stakeholders from 11 gewogs and one dungkhag across six dzongkhags. The goal was to gather direct insights on the effectiveness of the current scheme and identify the challenges rural residents face in accessing and benefiting from the insurance coverage. Throughout the process, the GGC received valuable feedback from a wide range of participants. Community members voiced concerns about the adequacy of the current compensation amount, delays in claim settlements, and the need for better awareness and simplified claims procedures. Local leaders and officials highlighted administrative bottlenecks and emphasized the need for the scheme to reflect current rural realities.

This consultation is part of an ongoing effort to ensure the scheme remains relevant and responsive to the needs of rural populations. The committee will now analyze the findings and consider the recommendations as part of its review process. The Rural Life Insurance Scheme is an essential safety net for rural communities, providing financial support to families in the event of the death of a household member. The review is expected to lead to improvements that will enhance the scheme’s accessibility, efficiency, and overall impact on rural livelihoods.

As outlined in the Budget Report for the financial year 2023-2024, the government has allocated Nu 67.730 million for the Rural Life Insurance subsidy. For the financial year 2024-2025, this provision has increased to Nu 69.083 million. Under the scheme, the current insurance premium is Nu 195, with beneficiaries paying Nu 87 and the government covering the remaining cost. All citizens above the age of 8 are eligible for the subsidy. The continued support through this subsidy demonstrates the government’s commitment to strengthening rural welfare and providing financial protection to communities during times of loss.

The Gup of Tang Gewog in Bumthang Dzongkhag, Ugyen Nima, raised concerns about the inadequacy of the current financial support for conducting funeral rites. He stated that not only he but all residents of his gewog have consistently voiced that the Nu 30,000 provided is insufficient to meet the expenses involved in performing traditional rituals and ceremonies. Ugyen Nima explained that in Bhutanese culture, death is followed by a series of important rituals deeply rooted in religious beliefs and community values. These ceremonies often last several days and involve costs for hiring monks, purchasing ritual items, preparing food for guests, and making offerings. “Many families are forced to borrow money to complete the required rites for their deceased loved ones,” he said. “There are people still struggling to repay loans they took after the death of a family member.”

According to the Gup, the current financial support fails to account for the actual costs borne by families during times of bereavement. He called for a revision of the amount to better reflect the cultural and economic realities faced by rural households, especially those with limited sources of income. Residents in Tang Gewog have echoed the Gup’s concerns, stating that the emotional burden of losing a loved one is often compounded by the financial stress of organizing funeral rites. They noted that while the government’s support is appreciated, it falls short of providing meaningful relief during such difficult times. The issue is not unique to Tang Gewog. In many rural areas, families are known to incur debt to fulfill their religious obligations.

For many Bhutanese families, funeral rites are a deeply spiritual and culturally significant responsibility. However, for people like Sangay Wangzom, a resident of Mongar Dzongkhag, the financial burden associated with these rituals has become a growing concern. “The funeral rite is an expensive affair in our society,” said Sangay Wangzom. “If someone passes away in a family, the expenses become agonizingly high.” She shared that Nu 30,000 is insufficient to cover funeral expenses, and in such cases, families are often forced to borrow money at high interest rates to cover the costs. “That would only become a further burden for me and my family,” she said. Sangay acknowledged that the country’s economy is still recovering and that the government may have limited resources. However, she emphasized that increasing the funeral assistance amount could greatly alleviate the financial strain on grieving families. She suggested that even if the government cannot provide Nu 150,000, increasing the amount to at least Nu 50,000, Nu 60,000, or Nu 100,000 would be helpful. “People are already struggling to make ends meet. Losing a loved one is emotionally painful, but the financial distress that follows adds more suffering,” she said.

The committee members expressed concerns about recurring delays in claim settlements and stressed the importance of revisiting the current compensation amount. Insights and feedback from the consultation will be presented in the upcoming session. The GGC held a stakeholder consultation with RICBL to discuss the Rural Life Insurance on April 24, 2025, and gathered valuable feedback from a wide range of participants on April 7, 2025.