RICBL offers opportunity to renew lapsed life insurance policy

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MB Subba

Have you updated your life insurance policy? You need not worry if you have not.

In view of the difficulties faced by policyholders due to the Covid-19 pandemic, the Royal Insurance Corporation of Bhutan Limited (RICBL) is offering the opportunity with two options to renew the policy until December 31, 2020.

The first option is to pay the full amount of the delayed life insurance premium and get a 10 percent from the RICBL.

The policyholder can also protect the policy by paying 50 percent of the delayed premium, which is the second option. The remaining 50 percent should be paid within the next six months.

The policyholders will be exempted from producing a medical report for renewing the policy.

However, conditions apply.

Firstly, the scheme is applicable only for those policies that have lapsed for more than six months as of June 30, 2020 since the last date of default.

Those policyholders taking the opportunity will not be eligible to cancel their life insurance policies within two years of the renewal.

They will be eligible for benefits only after three months of the renewal except under accidental demise and concessional period.  Also, the policy bonus will not be applicable for the lapse period.

Other special offers rolled out by the RICBL include up to 10 percent premium discount for renewal of fire and motor vehicle insurances.

It has also offered up to 40 percent premium discounts for new fire and motor insurance proposals. The premium on the new insurance can be paid in two instalments if the amount exceeds Nu 50,000.

RICBL’s CEO, Karma, said that the number of default cases was significant.

“The RICBL’s role in the economy is huge in terms of protecting the people from financial loses and providing them resilience,” he said.

However, he added that the offer was a one-time measure and that the RICBL would follow the normal practice after December 31. He said that it was not sustainable for the company to keep the offer beyond that period.

He said that while Covid-19 had threatened lives and livelihoods, Bhutan had been fortunate to mitigate the negative impacts.

“Bhutan put in place a response like no other, to a situation like no other, by a leader like no other. Even so, Covid-19 continues to inflict pain and hardship on the people and the economy,” he said.

Karma said that the measure was a humble support the corporation was offering to the government’s efforts in alleviating the damages of Covid-19.

He said that the offers were well-thought-of in the context of Covid-19. “It was our moral responsibility to do something for the society,” he said.

He said that people should visit branch offices if they wish to understand the technical details of the programme.