RLIS overhaul enters final phase with commitment to higher payouts and modernized enrolment through NDI platforms.
TIL BDR GHALLEY | Thimphu
The Government has assured the public that long-awaited enhancements to the Rural Life Insurance Scheme (RLIS) are nearing completion, with Finance Minister Lekey Dorji confirming that the revised scheme—expected to significantly increase benefits for rural households—will be rolled out before June 2026.
The update comes as welcome news to thousands of rural families who have been closely anticipating the Government’s pledge to raise the insurance payout from Nu. 30,000 to Nu. 150,000.
The question was raised by MP Dorji Wangmo of Kengkhar-Weringla, in the ongoing National Assembly session who sought updates on the Government’s pledge to enhance the RLIS benefit from Nu. 30,000 to Nu. 150,000, a commitment highlighted during the election campaign and followed closely by the rural population. The MP noted that the House had earlier instructed the Ministry of Finance to review the scheme within six months, finalize the new guidelines, and implement the revised policy within the current fiscal year.
The MP expressed concern over the timeline, stating that the country was “almost at the end of the 6th month of the current Fiscal Year 2025–2026, with still no definite news of the roll-out,” and requested clarity on the status of the review, the revised benefit and premium structure, and the expected date of implementation.
The Minister of Finance Lekey Dorji said the review process had been launched according to the fiscal directives issued by Parliament. “In line with the budget provision of Nu. 263 million earmarked under the General Reserve for FY2025–26, a comprehensive review of the RLIS has been initiated with the objective of enhancing coverage and strengthening the national life insurance system,” he said.
He informed the House that a multi-sectoral Steering Committee had been established to lead the review. The Committee comprises representatives from the Ministry of Finance, the Royal Monetary Authority, the GovTech Agency, the National Digital Identity (NDI) system, the Department of Civil Registration and Census (DCR&C), and the Ministry of Home Affairs.
According to the Minister, the Steering Committee has been mandated “to review the existing scheme and propose enhancements that are consistent with the Government’s pledge to increase the benefit amount, while also ensuring fiscal sustainability and equity.”
The finance minister outlined two major priorities guiding the ongoing review of enhancing the benefit amount in line with the Government’s pledge, while determining the appropriate premium and subsidy structure and modernizing the social protection system, ensuring that the RLIS remains universal and accessible, but with government subsidies targeted to households most in need.
He said the committee was exploring a modernized subsidy mechanism using digital platforms. He stated that the review includes “the introduction of an income-means-tested subsidy mechanism, delivered through technology platforms such as the NDI,” which would enable public resources to be deployed “equitably, efficiently, and transparently.”
The minister also said that although the committee had made “good progress,” limited availability of reliable datasets had slowed the pace of analysis. “The availability of comprehensive and usable data has posed challenges and slowed the pace of in-depth analysis,” he told the House.
Despite this, he confirmed that the committee expects to finalize its recommendations soon. “The Committee expects to submit its recommendations to the Lhengye Zhungtshog by the end of December 2025,” the Minister said.
While the MP had specifically sought details on the revised benefit amounts, premiums, and subsidies, the Minister said these calculations were still being finalized within the broader framework of fiscal sustainability and targeted support. However, he reiterated that the Government remained committed to its pledge to increase the benefit amount.
The Minister also noted that the timeline for implementation was closely connected to legislative reforms underway in Parliament. He said the revised scheme would be supported by amendments to the Financial Services Act, tabled in the ongoing session.
“With the anticipated passage of the Financial Services Bill by Parliament during this session, the enhanced national life insurance scheme is expected to be rolled out before June 2026,” he said.
He added that the reforms were designed to align the RLIS with broader national initiatives to upgrade financial governance and modernize the social protection architecture.
MP Dorji Wangmo told the House that rural communities had been continuously seeking updates on the Government’s promise to increase the insurance payout, stating that the public interest in the revised scheme was “quite understandable considering the genuine reasons behind it.” She requested clarity on eligibility requirements, premium levels, subsidy criteria, and clear implementation timelines.
Responding, the Minister reaffirmed that the RLIS would remain a universal scheme accessible to all eligible Bhutanese, but said the Government was developing a targeted subsidy mechanism to support households most in need. He explained that digital tools — particularly the NDI platform — would help streamline enrolment, automate verification, and ensure transparent delivery of benefits.
The Minister said the Government’s work on the revised RLIS was in its final stages and that the Cabinet would receive the steering committee’s report by the end of December. Once the Lhengye Zhungtshog reviews the recommendations and Parliament passes the Financial Services Bill, the rollout of the enhanced scheme is expected to proceed within the current fiscal year.
For now, the public and their representatives await the conclusion of the review and the Cabinet’s decision. With the finance minister affirming that the RLIS reform will be implemented before June 2026, more detailed announcements are expected in the coming months as the Government prepares for the roll-out.
