Member of Parliament (MP) Karma Lhamo

Government to enhance Rural Life Insurance Scheme to Nu 150,000-Nu 200,000 from Nu 30,000 soon

During the question-hour session in the National Assembly, the Member of Parliament (MP) of Mongar constituency, Karma Lhamo, requested the Finance Minister, Namgay Tshering, regarding the ministry’s plans and strategy to revise the existing Rural Life Insurance Scheme.

In response, Finance Minister said the rural life insurance scheme is an important scheme, and the revision of the scheme is being worked so it can be implemented soon.

Currently, the annual premium collection from members is Nu 195, of which an individual should pay Nu 87, while the government would pay the remaining Nu 108 as a subsidy every year. The Finance Minister shared that the existing payout amount of Nu 30,000 is insufficient during funeral rites, and the government is fully aware of it.

The government would increase the current rural life insurance scheme from Nu 30,000 to Nu 150,000 or Nu 200,000 maximum. He said those who are employed could pay 70 percent, which comes to around Nu 200 and the government can pay 30 percent as a subsidy every year, while for people in a rural area, an individual can pay 30 percent and the government can pay 70 percent. This would bring equality.

Meanwhile, the Rural Life Insurance Scheme was first introduced on 1 January 1982 covering the entire population. The scheme will be reviewed every three years.

The eligibility starts from age eight, and unlike commercial insurance policies which require exhaustive screening of the health, age and lifestyle risks of buyers.

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