Only house in Drametse town that was insured specifically against earthquake

18 November, 2009 - A couple from the satellite town of Drametse, Mongar, is doubtful whether they will be able to rebuild their house with the compensation from the royal insurance corporation of Bhutan limited (RICBL).

Their two-storied traditional house was the only one among 17 houses in Drametse insured specifically for earthquake, along with general rural insurance.

Two walls of the house, which belongs to Wangmo, 37, came down during the September 21 earthquake.

Wangmo’s husband, Karpo, 41, insured the house in 2004 for Nu 800,000, paying an annual premium of Nu 8,888 specifically against earthquake. The house was built in 2000.

But last month when the RICBL survey team assessed the damage, they deducted about Nu 180,000, saying that most of the material could be reused. “We’re in dilemma as I was told by the team that it was not a final assessment and there would be some changes when they submit their findings to the RICBL head office in Phuentsholing,” said Karpo.

“If RICBL doesn’t pay me the leftover amount of Nu 620,000, I won’t be able to rebuild my home,” he said. Karpo has already received Nu 50,000 as kidu from His Majesty the King and Nu 60,000 as rural insurance.

“If I knew this was the way insurance is paid, I wouldn’t have gone for insurance at all,” said Karpo.

The RICBL chief executive officer, Namgay Lhendup, said the field survey report had not yet reached, but there was no way total compensation would be given. “It’s an international norm to make genuine deductions from the total compensation,” he said. “In Bhutan, the deductions are comparatively much less.”

Karpo is still optimistic that the balance amount would be paid to him in full. “If that happens, I can start rebuilding immediately,” he said.

A total of 388 households in Drametse were damaged in the September 21 earthquake. Of these, 39 were damaged beyond repair, 40 had major damage and 65 were partially damaged.