ROYAL INSURANCE CORPORATION OF BHUTAN LTD

1 ROYAL INSURANCE CORPORATION OF BHUTAN LTDHEAD OFFICE:THIMPHUGUIDELINES OF THE PRIVATE PROVIDENT FUND SCHEME (PPF)2011(SAVE WHILE YOU EARN)TRUSTEEROYAL INSURANCE CORPORATION OF BHUTAN LIMITEDROYAL INSURANCE CORPORATION OF BHUTAN LTDHEAD OFFICE:THIMPHUGUIDELINES OF THE PRIVATE PROVIDENT FUND SCHEME (PPF)2011(SAVE WHILE YOU EARN)TRUSTEEROYAL INSURANCE CORPORATION OF BHUTAN LIMITEDROYAL INSURANCE CORPORATION OF BHUTAN LTDHEAD OFFICE:THIMPHUGUIDELINES OF THE PRIVATE PROVIDENT FUND SCHEME (PPF)2011(SAVE WHILE YOU EARN)TRUSTEEROYAL INSURANCE CORPORATION OF BHUTAN LIMITEDI nsure with RICB to be sure FSSDPage2 TABLE OF CONTENTSC hapter I-General ProvisionTitle-------------------------- ---------------------------------------- ---------------------------------------- ---1 Commencement---------------------------- ---------------------------------------- ---------------------------1 Extent ofcover--------------------------------- ---------------------------------------- -----------------------1

2 Objectives------------------------------ ---------------------------------------- --------------------------------1 Chapter II-Definition--------------------------- ---------------------------------------- -----------------1-2 Chapter III Private Provident Fund Scheme and Membership------------------------------ ---2-3 Chapter IV-ContributionEmployees---------------- ---------------------------------------- ---------------------------------------- -----3 Employers------------------------------- ---------------------------------------- ------------------------------3 Chapter V Statement and remittance ------------------------------ --------------------------------3-4 Chapter VI-Administration of Fund.

3 Accounts and AuditBoardof Directors------------------------------- ---------------------------------------- ----------------------4 Investment------------------------------ ---------------------------------------- --------------------------------4 Reserve--------------------------------- ---------------------------------------- --------------------------------4 Administration Expenses-------------------------------- ---------------------------------------- -------------4 Tax exemption------------------------------- ---------------------------------------- --------------------------4 Allotment ofaccount numbers--------------------------------- ---------------------------------------- ------4 Accounts &Audit---------------------------------- ---------------------------------------- -------------------4 Interests------------------------------- ---------------------------------------- ----------------------------------5 Chapter VII Nomination.

4 Payment and withdrawal from the FundNomination-------------------------- ---------------------------------------- -----------------------------------5 Payment--------------------------------- ---------------------------------------- --------------------------------5 Withdrawal------------------------------ ---------------------------------------- -------------------------------6 Chapter VIII-Refunds---------------------------- ---------------------------------------- ---------------6-7 Miscellaneous--------------------------- ---------------------------------------- ------------------------------7 Memorandum of understanding Form------------------------------------ ----------------------------------8 Private Provident Fund ContributionForm (Appendix-1)---------------------------- -------------------9 Registration Form (Appendix-2)---------------------------- ---------------------------------------- -------10 Nomination Form(Appendix-3)

5 ---------------------------------------- -----------------------------------11 Change of Nominee Form (Appendix-4)---------------------------- -------------------------------------12 Change of Guardian in respect of minor nominee (Appendix-5)---------------------------- ---------13 Private Provident FundScheme Refund Form (Appendix-6)---------------------------- --------------14 Insure with RICB to be sure FSSDPage3 CHAPTERI-GENERAL guidelines shall be cited as the Private Provident Fund Scheme (PPF) of RoyalInsurance of BHUTAN Limited, of the Kingdom of BHUTAN , guidelines shall be take effect on the 25thday of 3rdmonth of Female rabbit year inthe Bhutanese calendar corresponding to 27thday of May, month of shall extent to the whole of the PPF members of RICB inKingdom of objectives of these guidelines are to facilitate the management and administration ofthe scheme for retirementlump sumcash benefits to the PPF members; retirement assets building benefit to the PPF members; security in the event of permanent disability of the members.

6 Support to surviving family members of the deceased member; habits while the members these guidelines, unless the context indicates otherwise, the words, phrases, acronymsand abbreviation are defined as Guidelines means PPF Scheme guidelines of RICB of the Kingdom of BHUTAN , PPF means Private Provident PF means Provident Fund accumulation of the members RICB means ROYAL InsuranceCorporation of BHUTAN Board means the Board of Directors of the ROYAL INSURANCE CORPORATION ofBhutan Contribution means the amount of contribution payable in respect of an employeeunder a CORPORATION means the ROYAL INSURANCE CORPORATION of BHUTAN Limited.

7 Which isthe agency responsible for the management and administration of both the Schemeand the Deduction means the amount to be contributed by the employees percentage ofthe salary as defined in clause of chapter with RICB to be sure Employer means Private Organization and other agencies that pay matchingcontribution against deduction from salary of the Employee means employees ofprivate and other agencies who have joined thePPF FUND means Private Provident Fund established under Retirement means exit from regular Nominee means a person organization whose name has been nominated by thePPF member to avail the right to claim his/her PFaccumulation incase of Accumulation means the cumulative fund contribution by employees-employersand cumulative interest Government means the ROYAL Government of Agency means a business or an entity that are legallyregistered in the country toprovide a product or Interest means the daily product simple interest computed to the employee s andemployer s contribution from the date of

8 Member means all existing and the past employees to whose credit a balanceremains outstanding with the Lump sum benefit refers to the cashbenefits to be received bymembers/nominee(s) from his/her Salary means basic pay as per the rules and regulations of the concernedemployers for the purposeof the provident Scheme means the Private Provident Fund Reserve means the difference between the aggregates assets of the providentFund and aggregate of its liabilities and of all the balances lying to the credit of Year means the financial year commencing on the first day January and III PRIVATE PROVIDENT FUND SCHEME AND Private Provident Fund Scheme is a defined-contribution scheme under whicha

9 Lump-sum benefitequivalent to the accumulated contributions to a member saccount, together with returns thereon, shall be paid on the date of his/herretirement or upon his/her disability or death while in service. Upon death ofmember, lump-sum benefits shall be paid to the nominee(s) in accordance withclause (22) of these with RICB to be sure FSSDPage57. Execution of formal agreements for The membership to the PPF Scheme shall be formalized through a Memorandum ofUnderstanding executed between the said agencies/organizations and the IV CONTRIBUTION8.

10 The employees of the private companies and agencies shall contribute at the ratedetermined by the scheme rules and regulations or the service rules and regulations or theservice rules and regulations or the contract of employment of the concerned companiesand agencies but not lower than5%of employee s basic salary as required under theLabor and Employment Act the case of employee(s) on leave without pay, no deduction shall be made for the periodduring which the employee(s) is/are on such In case of reconsideration of leave without pay and subseq