ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Insurance is

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED “Insurance is amongst the most prudent invention of mankind; it makes disaster tolerable. ” Albert Einstein

ENSURING : SOCIAL SECURITY SOCIAL WELFARE & ECONOMIC GROWTH

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED RICBL WAS ESTABLISHED ON 7 TH JANUARY 1975 UNDER THE ROYAL CHARTER OF THE FOURTH DRUK GYALPO. WITH THE OBJECTIVE TO CATER TO INSURANCE NEEDS OF THE PEOPLE AND TO PROMOTE SOCIO-ECONOMIC DEVELOPMENT OF THE COUNTRY. 3

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED • RICBL has reinsurance arrangements with ten companies in India, Japan, Thailand, Hong Kong, Nepal, Bangladesh, UK Germany and Korea. • All our policies are strictly as per the international standard and practice. • Larger spread in the international market means larger spread of risks- safer for the customers of RICBL. 4

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED OUR BUSINESS CENTRES KHURUTHANG BRANCH OFFICE BUMTHANG KHURUTHANG BRANCH OFFICE THIMPHU (BRANCH OFFICE) HEAD OFFICE(BRANCH OFFICE) LOBESA BRANCH OFFICE MONGGAR PARO (BRANCH OFFICE) BRANCH OFFICE O CE) R A I MONGGAR P OFF THIMPHU BRANCH OFFICE H C N (REGIONAL OFFICE) TRASHIGANG BRA ( TSIRANG GEDU BRANCH OFFICE (BRANCH OFFICE) BRANCH OFFICE (BR SA GEDU AN MT SE CH SAMTSE GELEPHU SAMDRUP JONGKHAR OF OFFICE(BRANCH OFFICE) BRANCH SAMDRUPJONGKHAR OFFICE FIC BRANCH OFFICE E) (BRANCH OFFICE) PHUENTSHOLING GELEPHU REGIONAL OFFICE (BRANCH OFFICE) 5

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED SHARE HOLDING PUBLIC & PRIVATE HOLDING 61% DHI PATTERN HOLDING 18% HIS MAJESTIES SECRETARIAT HOLDING 21% 6

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED LINE OF BUSINESS • • Life Insurance General/Non-life Insurance Credit and Investment Group Insurance cum Savings Scheme Private Provident Fund RICB Securities Limited Rural House Insurance 7

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Non-life Insurance Products • • • Fire Insurance Industrial Insurance Engineering Insurance Marine/Transit Insurance Motor Insurance 8

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED General/Non-life Insurance Products ………contd. • • Group Personal Accident Insurance Cash In-transit Insurance Cash In-safe Insurance Burglary Insurance Fidelity Guarantee Insurance Aviation Insurance 9

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED General/Non-life Insurance Products ………contd. • • House Holder’s Insurance Trekking Insurance Overseas Travel Insurance Loan Care Insurance Shopkeeper’s Insurance Rural Insurance Scheme Cattle Insurance Health Insurance 10

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED LIFE INSURANCE Life can only be understood backwards, but it must be lived forward…. - Chinese Proverb 11

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Ø A contract between the insured and the insurer, whereby the insurer agrees to pay the insured certain amount in the event of: v Death of the assured or v on surviving the period agreed upon, together with bonus, on payment of a certain premium. 12

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED WHY WE NEED LIFE INSURANCE? OLD AGE: Post Retirement Income. FAMILY: Protection of the interest of the family against loss of income due to death of the bread earner. CHILDREN: Provision for education and to start in life. Life Insurance mitigates the adverse consequences that may follow either on early demise of a person or on his living too long 13

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED BENEFITS OF LIFE INSURANCE • Provides full financial protection to the beneficiary in the event of death of the assured. • Encourages saving. • Plan provision for children’s education • Insurance premiums are Tax deductible 14

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Youth Endowment Assurance plan Silver Jubilee term Assurance plan Ashi Nangsey Living policy Double cover endowment plan with profit Millennium Education Scheme-III Ltd. payment life policy Endowment Assurance Policy Life Plans Pho-Mo Joint Life Endowment Assurance policy Money back policy with profit New version Money back plan 15

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED HOW WE REACH OUT TO THE PEOPLE? ØThrough our field people posted in different branch offices ØThrough our sales executives ØThrough print and broadcast media 16

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED SALES EXECUTIVES? ØIndividual who are recruited and trained to sell life insurance policies ØNot regular employees ØPay commission depending on the quantum of business they procure ØAs of now there are 160 plus sales executives operating in various Dzongkhags ØPlans to recruit more for wider coverage 17

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED HOW LIFE INSURANCE CONTRIBUTES? ØPeace of mind and hence productive contribution in all endeavors ØSavings for old age, contented life and hence promotes GNH ØContribute to employment by recruiting unemployed people as agents. ØContribution to exchequer through tax. 18

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED GENERAL IINSURANCE 19

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED NEED FOR INSURANCE Disability, Accidents, Loss of Income and assets Protection against unforeseen and un -predictable circumstances 20

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED PRODUCTS: • Fire Insurance • Industrial Insurance • Engineering Insurance • Marine/Transit Insurance • Motor Insurance NEW PRODUCTS TO BE INTRODUCED: • • • SHOPKEEPERS INSURANCE LOAN CARE INSURANCE OVERSEE TRAVEL INSURANCE HOUSEHOLDERS INSURANCE HEALTH INSURANCE 21

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED WHAT IS COVERED UNDER FIRE POLICY? • Material damage by fire and or lightning • Damage to property due to water or other fire extinguishing appliances used in extinguishing/ controlling fire • Damage to property caused by legitimate acts of fire brigade • Damage to property during removal from burning building 22

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED WHAT IS NOT COVERED UNDER FIRE POLICY? • Theft during and after occurrence of fire • Burning of property under orders of any authority • Goods held in trust or on commission • Documents, computer record systems • Property insured, if removed to any building or place other than in which it is stated to be insured. • Bullions or unset precious stone. 23

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED IN TIMES OF CLAIM : Call RICB at Toll free nos. : Phuentsholing- 151 Thimphu – 181 Inform Traffic Police & call the nearest RICB office. 24

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Motor Insurance Comprehensive Policy Own Damage Third Party Policy Third Party

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Benefits under Comprehensive Policy v Your own car is covered with Third v Party. v You enjoy No Claim Bonus. Benefits under Third Party Policy v. Only Third Party is covered. 26

MOTOR CLAIMS SETTLED FROM THIMPHU FROM JAN TO FEB, 2010 MONTH CLAIMS PAID JANUARY 1, 052, 533. 82 FEBRUARY TOTAL 4, 166, 561. 31 5, 219, 095. 13

MOTOR CLAIMS SETTLED FROM THIMPHU FROM JAN-DEC, 2009. MONTHS CLAIMS PAID(NU. ) JAN-DEC 24, 353, 699

TOTAL CLAIMS SETTLED FROM THIMPHU FOR OTHER GENERAL PRODUCTS, Yr-2009 MONTH JAN-DEC, 2009 CLAIMS PAID 1, 738, 378. 22

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Credit and Investment • • • Housing Loan Transport Loan Industrial Loan Staff Loan Business Loan against Share Personal Loan Card Loan Preferential Finance Scheme Loan (PFS) Contractor’s Revolving Credit (CRCS) Private Provident Fund Loan(PPF) 30

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Group Insurance Scheme & Group Savings Linked Insurance • 60% of the contribution goes to the savings which attracts 7. 5% interest. • While the 40% is the premium for insurance. • Insurance covers – Permanent Total disablement and death. 31

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Private Provident fund • Initiated in 1976 and amended in 1985 by H. R. H. Sonam Choden Wangchuk. • The scheme was further revised in 1990 and amended through M. o. U effective from 1 st July’ 1997. • On 1 st July 2000, Ministry of Finance issued circular to manage Provident Fund of Private sectors and NGOs by RICBL. • As of 31 st August 2009 we have 115 member organizations with 6, 300 P. F members. 32

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Private Provident fund…. . contd. Objective of the scheme • To give retirement benefit to the employees working under Private sectors and NGOs. • To Induce saving while the members earn ( Save –As You earn Scheme) • To give post service and in-service benefit to the employees 33

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Rural Insurance • Memorandum drawn between Mo. F, Mo. HCF and the RICBL. • A scheme to grant insurance cover for all houses against fire, earthquake, flood, landslide • Covers all Dzongkhag and is compulsory for all rural houses • Corporate social responsibility to the rural community and the Government. 34

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Not covered Hail storm Others perils not specified above Loss caused wilfully or intentionally More than one owner living in a single house

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Ngultrum Rural Insurance- Premiums & Claims Year 2005 -2006 -2007 -2008 -2009 -2010 Total Premium Received Claims Paid 6, 620, 680 14, 703, 050 6, 768, 680 8, 685, 600 6, 930, 595 9, 065, 600 6, 990, 316 8, 079, 450 7, 385, 840 93, 245, 200 34, 696, 111 133, 778, 900

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED Future Plans - Overall reduction of premium in General Insurance - Improve customer service - Increase life insurance penetration - Request Government to increase tax rebate from 50% to 100%. - Introduce health insurance vis-à-vis Government health policy. -Introduce Crop Insurance - Enhance the coverage of Private Provident Fund and start Pension for private sector. - New Regional Offices and Branch offices in various parts of the country 37

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED 38