Let parliament decide on the vehicle insurance prices

The Rwanda statistical year book 2016 puts the number of vehicles of all categories at 161,925. Rwanda National Police statistics put the number of accidents in 2016 at 200 (The New Times, August 25, 2016). Igihe.com of December 14, 2017 gives a police report of the drop in accidents from the previous year as 5%.
Insurance firms say it has been hard to pay claims to clients like the owner of this car because of low cash flow resulting from poor policy pricing. File.
Insurance firms say it has been hard to pay claims to clients like the owner of this car because of low cash flow resulting from poor policy pricing. File.

Editor,

RE: “Hike in motor vehicle insurance prices good for everyone – ASSAR” (The New Times, January 16).

The Rwanda statistical year book 2016 puts the number of vehicles of all categories at 161,925. Rwanda National Police statistics put the number of accidents in 2016 at 200 (The New Times, August 25, 2016). Igihe.com of December 14, 2017 gives a police report of the drop in accidents from the previous year as 5%.

With 161,925 (increases in 2017 not considered), it means that—for an average car, having annual motor insurance cover for third-party only Rwf70,000, and without including premium cover for rich owners of more than Rwf1.5 million—that the few insurance companies have Rwf 11,334,750,000 to share among themselves.

How many vehicles have had damaging accidents for insurance companies to justify the claim that they are failing to pay claims when actually the biggest costs could be for covering staff remuneration?

My advice to insurance companies is they should cut the number of employees instead of shifting their burden to car owners. Please ASSAR, stop taking people for a ride. You are not being honest.

James Munanura

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In my view, this serious matter should be taken to Parliament, as the institution that represents the people, so that balanced and better decisions for all parties should be made. Since this decision, if not challenged, could lead to the public transporters also speculating in raising their prices.

Frank Shumbusho

 

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