Insurance in Bhutan

Insurance in Bhutan is based on contracts or statutory arrangements that pay defined benefits after events such as death, disability, accidents, property loss, vehicle damage or liability. The Royal Monetary Authority licenses and supervises insurers under the Financial Services Act 2011, the RMA Act 2010 and related insurance regulations. Risk-based solvency and capital requirements were updated in 2025. GIC-Bhutan Reinsurance Company Limited provides local reinsurance capacity. Royal Insurance Corporation of Bhutan Limited offers life and general insurance. Its products include term and group term life insurance, savings and endowment policies, children’s and retirement products, annuities, loan and life protection, critical illness options, motor, fire, householder, shopkeeper, industrial, marine, engineering, aviation, burglary, fidelity, cattle, rural house, personal accident, travel and liability cover. Bhutan Insurance Limited focuses on general insurance, including motor, fire, travel, engineering, aviation, marine, liability, personal accident, burglary, loan protection and workman compensation insurance. Social protection is not organised as one universal insurance system. The state-supported Universal Rural Life Insurance scheme provides a death benefit of Nu 30,000 per member; the RICB FAQ states a member payment of Nu 87 and a government subsidy of Nu 108, while eligibility and administration depend on the applicable rules. ISSA describes access for Bhutanese citizens from age eight who live in rural areas. Public employees may receive employment-related cover through the Government Employee Group Insurance Scheme and the Civil Servants’ Welfare Scheme, which uses monthly contributions based on four position categories and can provide a death grant for members or direct dependants. The spouse of a retired civil servant can retain free membership for life. No nationwide unemployment or health-insurance scheme is evidenced in the available research; publicly provided basic health services belong to the health-services context rather than an insurance product. Employers must insure employees against work injuries through an authorised financial institution under the Occupational Health and Safety Regulation 2022, except for businesses holding a Micro Trade business licence. The employer pays the full premium and may not deduct it from payroll. The employer can remain liable if the policy lapses or premiums are unpaid. After notification, the insurer must assess a work-injury claim within at least 10 calendar days and pay within at least 15 calendar days; the Department of Labour or Chief Labour Administrator confirms the relevant claim circumstances. Statutory coverage is especially relevant to firms with at least five employees, while self-employed workers are excluded from that arrangement. Motor insurance has a compulsory element. Non-commercial vehicles require at least third-party cover, while commercial vehicles require comprehensive insurance under the Road Safety and Transport Authority rules. Third-party cover protects against liability for accidental injury, death or damage to another person’s property, but it does not pay for damage to the policyholder’s own vehicle. Registration and roadworthiness compliance are linked to a valid insurance certificate. Applications commonly use the Blue Book, registration details, an invoice or proposal, and product-specific documents. Personal accident cover for the owner, driver or passengers depends on the policy and applicable transport rules. Property cover can insure homes, rural houses, shops, industrial sites, goods in transit, marine risks, engineering projects, aircraft, livestock and burglary. The policy wording determines the sum insured, exclusions, deductible and any inspection or loss-adjuster requirement. Personal insurance includes life, death, disability, personal accident, travel and loan protection. One BIL online travel product lists accidental death and permanent total disability cover up to Nu 150,000 and emergency medical evacuation up to Nu 30,000, with possible add-ons for repatriation, baggage, passport and hospital expenses. Travel policies can also cover overseas medical treatment, evacuation or liability, depending on the selected product. To obtain cover, the applicant normally submits a proposal and identification such as a CID, passport or work permit. The insurer may request nominee or relationship evidence, underwriting information, an inspection or other product-specific documents. Tourist travel applications can require the traveller’s name, identification, nationality, date of birth, gender, arrival and departure details and package information. Premiums depend on the product, risk and sum insured, so a general market-wide premium table is not available. A claim normally starts with the insurer. BIL requires claim notification within 15 days of an accident or loss. Depending on the product, the insurer may request the policy, claim form, identification, police or first-information report, court documents, estimates, photographs, invoices, medical or death certificates, the Blue Book, driving licence and roadworthiness certificate. RICB life claims commonly require the policy document, proof of death, CID or nominee evidence and a police report for accidental death. Fraud, exclusions, missed premiums or incomplete evidence can delay or defeat a claim. Life policies may allow monthly, quarterly, half-yearly or annual payments. RICB states a grace period of 15 days for SSS or monthly payments and 30 days for quarterly, half-yearly or yearly payments; after that, a policy may lapse and benefits may be lost, subject to possible revival conditions. Motor and property policies usually require renewal, while endorsement, cancellation, ownership changes and vehicle changes depend on the policy and insurer. Unresolved complaints should first go through the insurer’s internal channel and can then be submitted to the RMA using its Consumer Protection for Financial Services complaint process. The policy wording and the current rules of the RMA, the Road Safety and Transport Authority or the Department of Labour determine the final benefit, duty and procedure.