𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐌𝐨𝐯𝐞𝐬 𝐭𝐨 𝐑𝐞𝐯𝐢𝐬𝐞 𝐑𝐮𝐫𝐚𝐥 𝐋𝐢𝐟𝐞 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐒𝐜𝐡𝐞𝐦𝐞 𝐰𝐢𝐭𝐡 𝐇𝐢𝐠𝐡𝐞𝐫 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬

…𝒇𝒊𝒏𝒂𝒏𝒄𝒆 𝒎𝒊𝒏𝒊𝒔𝒕𝒓𝒚 𝒂𝒊𝒎𝒔 𝒕𝒐 𝒇𝒊𝒏𝒂𝒍𝒊𝒛𝒆 𝒓𝒆𝒄𝒐𝒎𝒎𝒆𝒏𝒅𝒂𝒕𝒊𝒐𝒏𝒔 𝒃𝒚 𝑫𝒆𝒄𝒆𝒎𝒃𝒆𝒓 2025, 𝒊𝒏𝒄𝒓𝒆𝒂𝒔𝒊𝒏𝒈 𝒑𝒂𝒚𝒐𝒖𝒕𝒔 𝒇𝒓𝒐𝒎 𝑵𝒖. 30,000 𝒕𝒐 𝑵𝒖. 150,000 𝒂𝒏𝒅 𝒊𝒏𝒕𝒓𝒐𝒅𝒖𝒄𝒊𝒏𝒈 𝒕𝒂𝒓𝒈𝒆𝒕𝒆𝒅 𝒔𝒖𝒃𝒔𝒊𝒅𝒊𝒆𝒔 𝒇𝒐𝒓 𝒗𝒖𝒍𝒏𝒆𝒓𝒂𝒃𝒍𝒆 𝒉𝒐𝒖𝒔𝒆𝒉𝒐𝒍𝒅𝒔

By Kinzang Lhamo

The government’s review of the Rural Life Insurance Scheme (RLIS) is entering a critical stage, with the Finance Ministry expected to finalize its recommendations by the end of December 2025, as mandated by Parliament earlier this year. The review follows the government’s pledge to raise the scheme’s benefit from Nu. 30,000 to Nu. 150,000, a commitment closely monitored by rural communities that rely on RLIS for essential funeral support.

With half of the 2025–2026 fiscal year already elapsed, lawmakers have pressed for clarity on the status of the review and the timeline for implementation, noting the absence of official updates despite earlier assurances. During the current parliamentary session, members highlighted that the House had directed the Ministry of Finance to complete the review within six months, finalize the guidelines, and implement the revised scheme within the fiscal year.

This directive followed the Finance Minister’s earlier submission during the 3rd Session of the 4th Parliament, where he informed the House that Nu. 263 million had been allocated under the General Reserve to support a comprehensive reassessment of the RLIS, covering benefit levels, premium rates, subsidy structures, and eligibility criteria.

Strengthening the national life insurance system had been a key part of budget deliberations.
Lekey Dorji, the Finance Minister reiterated that the allocated funding is specifically for the RLIS review. “The Government has allocated Nu. 263 million in the upcoming fiscal year to carry out a full review of the Rural Life Insurance Scheme and strengthen the national life insurance system,” he said.

He explained that a multi-sectoral Steering Committee is leading the process, comprising the Ministry of Finance, the Royal Monetary Authority, GovTech Agency, the National Digital Identity team, OCASC, and the Ministry of Home Affairs and Cultural Affairs. The committee is tasked with assessing the current scheme’s limitations and proposing reforms that uphold the government’s commitment while ensuring fiscal responsibility.

According to the minister, the review aims not only to increase the payout but also to redesign the subsidy and premium system for greater fairness. “Our priority is to enhance the benefit amount and redesign the premium and subsidy structure so that assistance reaches households that need it the most,” he said. The revised RLIS is expected to shift from a uniform subsidy model to a more targeted approach that considers household income and vulnerability.

One major proposed change is an income-means-tested mechanism to differentiate subsidy levels. Digital platforms such as the National Digital Identity are expected to support the system, improving accuracy, transparency, and efficiency in determining eligibility. Officials emphasized that the scheme will remain universally accessible while prioritizing the most financially vulnerable groups.

The minister also acknowledged challenges during the review, particularly the lack of comprehensive and reliable data for detailed analysis. “Despite data limitations slowing detailed analysis, we expect to submit our recommendations by the end of December 2025 and roll out the enhanced scheme before June 2026,” he said, reassuring lawmakers that progress remains steady.

The timing of the RLIS reform aligns with ongoing efforts to amend the Financial Services Act, tabled in the current parliamentary session. Once passed, the amendment will provide the legal foundation for the updated national life insurance system, enabling implementation of the revised RLIS within the planned timeline. Officials involved in the review noted that legislative changes and digital integration form the backbone of a more resilient and modernized insurance framework.

Public anticipation for the increased benefits has grown, as half of the fiscal year has passed without formal announcements. Lawmakers highlighted the urgency, noting that rising funeral-related expenses have intensified financial pressures on families. The parliamentary discussions underscored the need for a predictable rollout plan, given strong public expectations. The allocation of Nu. 263 million, the involvement of multiple agencies, and digital tools signal the government’s intent to build a more equitable, transparent, and sustainable national life insurance system.

Community members have welcomed the proposed revision while voicing concerns over the unclear timeline. Dorji, Tshogpa of Baeyul Kunzang, Bongo gewog under Chukha Dzongkhag, said, “I know about rural life insurance and till now we have been paying from the myRICBL website and I feel it is easy. I feel moving forward with digitalization is a better option because if we do it on paper there are chances of the documents getting damaged. Even in my village, many people know about the RLIS since many of the young people here are educated, and for older people, we help them. Although I saw the discussion in the parliamentary session about revising the Nu. 30,000 to Nu. 150,000, I am still unaware about when they will start this.”

Anil Rudra Sharma, Mangmi of Norgaygang Gewog, said, “Even though the current parliamentary session has raised the issue regarding the RLIS, for people who do not earn much, I feel the increase in the benefit amount will be helpful. However, we have been raising issues with the Local Government regarding Nu. 150,000 when we will receive it, as the current Nu. 30,000 is not enough for the funeral. We are well-versed with the online system, having paid taxes digitally, but we are not sure when we will receive the revised amount. It will reduce the burden of borrowing money for funeral and other matters.”

Homa Nath Suberi, Langchenphu chiwog Tshogpa, said, “The current amount of Nu. 30,000 is all used for funeral rites; however, it is not enough. I feel the revised amount will be very beneficial. In every household, there is at least one educated child who can pay digitally, and if they aren’t, we send the screenshot and they seek help from the local governments. I feel going digitally will not be much of an issue.”

Tshering Zam from Paro added, “I heard in the parliamentary session regarding the revision and I highly appreciate this. However, throughout the discussion, there was no information on when it will start and when it will be received, but I am hopeful that it will be done soon.”

As the Ministry of Finance works to finalize the RLIS review, rural households await clarity on benefit payouts and premium structures. With a combination of digital tools, legislative amendments, and targeted subsidy mechanisms, the government aims to ensure that the revised RLIS reaches the most vulnerable while remaining sustainable, transparent, and accessible across the country.