2nd Sitting: Introduction of the Review Report on the Rural Life Insurance Scheme
Today, the Good Governance Committee (GGC) presented its review report on the Rural Life Insurance Scheme (RLIS) to the House. Hon’ble Sonam Tobgyel, Chairperson of the GGC, shared the report, which encompassed the background, rationale, and approach for the review, the current scenario, key findings, and policy recommendations.
In his presentation, he underscored that the RLIS was introduced in 1982 through a Royal Kasho by His Majesty the Fourth Druk Gyalpo as a commendable initiative to provide financial support to citizens during times of bereavement. The Scheme currently offers a sum assured of Nu. 30,000 with an annual premium of Nu. 195, of which Nu. 108 is subsidised by the government. He noted that while the Scheme achieved a high penetration rate of 92% in 2022, the current coverage is insufficient to meet the escalating costs of funerals.
Furthermore, issues such as digital illiteracy, limited access to the MyRICB App, and the exclusion of children below eight years of age were also brought to the fore.
Key recommendations included revising the sum assured and premium, making the Scheme inclusive of children under eight, adopting a differentiated subsidy approach based on economic vulnerability, enhancing payment systems with both online and offline options, and reviewing legal provisions to foster fair competition in the insurance market.
He emphasised that the reform of the RLIS is paramount to strengthening Bhutan’s social protection system as the nation aspires to attain a high-income GNH economy by 2034.
The House will continue
to engage in deliberations on the review report on the Rural Life Insurance
Scheme tomorrow.
