Bhutan Insurance Limited                                             Your Insurer
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Our Products Loan Protection

This insurance policy is specifically designed for the loan clients of the financial institutions.

Borrowers and their family can have peace of mind and payment protection by availing ‘Loan Protection Insurance Policy offered by Bhutan Insurance Limited at a very minimum cost. As most employees avail loan by pledging their post-retirement benefits, should misfortune happen to the clients, their family members will be hard hit especially if the post-retirement benefits of the bread earner have to be adjusted against the outstanding loans. Thus through the Loan Protection Insurance cover, the pecuniary interest of the bereaved family members will be protected to the extent of outstanding principle loan balance.


The policy provides the following covers: In the event of insured’s:


1. Permanent Total Disability due to accident, Bhutan Insurance will pay the outstanding principle loan balance as on the event of the claim or sum insured whichever is less.


2. Demise due to Accidental, Bhutan Insurance will pay the outstanding principle loan balance as on the event of the claim or sum insured whichever is less.


3. Termination from employment, Bhutan Insurance will provide cover to the extent of 50% of the principle loan balance as on the event of the claim or sum insured whichever is less

We offer attractive premium discounts for taking the policy cover for more than one year/entire loan term:


Terms and Conditions

1. Members must be of 18 years or above

2. Maximum loan repayment period should not be more than 60 months

3. Coverage ceases when member reaches the age of 61

4. The coverage shall be on the loan sanctioned amount or loan balance whichever is less


General Exclusions


1. Arising out of events other than those specifically mentioned in the policy schedule


2. Arising or resulting from the insured person committing any breach of law with criminal intent as proven by competent court of law


3. Due to, arising out of, or directly or indirectly connected with or traceable to war, invasion, act of foreign enemy, hostilities (whether war be declared or not) civil war, rebellion, revolution, insurrection, mutiny, military or usurped power, seizure, capture arrests, restraints and detainment of all Heads of State and citizens of whatever nation and of all kinds and acts of terrorism.


4. Directly or indirectly caused by or contributed to by or arising from ionizing radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel. For the purpose of this exception, combustion shall include any self-sustaining process of nuclear fission.


5. Directly or indirectly caused by or contributed to by or arising from nuclear weapon materials.


6. Due to suicide or age more than 61 or loan period exceeding 60 months


7. Due to permanent total disability resulting from any injury, sickness or disease for which medical care, treatment, or advice was recommended by or received from a Doctor or from which the insured person suffered or which was present before the commencement of the period of insurance


8. The company shall not be liable for any payment in the event of termination from employment of the insured person being attributed to absconding from the country or on conduct of Anti-Government criminal acts.


Note: These are the summary of the policies and do not contain the full terms and the conditions of the cover which can be found in the policy documents.