The judiciary has urged insurance companies to embrace Alternative Dispute Resolution (ADR) as a faster and more effective way to settle disputes, amid concerns over the number of insurance-related cases in courts. Chief Justice Domitilla Mukantaganzwa called on insurers to prioritise ADR, noting that it provides an efficient alternative to lengthy court processes. She said ADR enables parties to resolve disputes more quickly and reach mutually agreed solutions that are easier to implement since both sides consent to the outcome. ALSO READ: Court case backlogs could be reduced to 25% by 2029 - officials Mukantaganzwa explained that the push is part of a broader effort to engage different sectors and raise awareness that disputes can be resolved without necessarily going to court. The goal, she said, is to make ADR a common practice among Rwandans. She emphasised that the value of a case should not be judged solely by the amount of money involved. Whether a dispute involves Rwf1 billion or Rwf100,000, she noted, the process remains the same, and what matters most is its impact on individuals and society. Unresolved disputes, she added, affect not only the parties involved but also the country at large, underscoring the need for timely and amicable solutions. The Chief Justice said courts are encouraging parties, especially in the insurance sector to consider ADR before litigation. With goodwill and a clear understanding of its benefits, she noted, some cases could be resolved within two to three months. Disputes in the insurance sector often arise from differing expectations between insurers and clients. While claimants typically seek higher compensation, insurers base payouts on agreed policy terms and premiums. Mukantaganzwa stressed that compensation must align with contractual agreements and the law. She cautioned against claimants demanding amounts beyond what was agreed, noting that payouts are guided by premiums paid, jurisprudence, and expert assessments. ALSO READ: Why justice sector is taking ADR to schools She also warned against malpractice, including instances where some lawyers may encourage litigation over ADR for personal gain, saying such actions could amount to corruption and attract penalties when proven. Alex Bahizi, chairperson of the Association of Insurers in Rwanda (ASSAR), said the country has nearly 20 insurance companies and, while disputes are not alarming, they remain a concern. He cited key causes of disputes, including misunderstandings of insurance contracts, claims exceeding policy coverage, fraud, and conflicting reports from medical experts, investigators, and private assessors. “These inconsistencies often make it difficult for both parties to agree, leading to court cases,” he said, adding that some lawyers also encourage litigation in anticipation of higher compensation. Bahizi said the sector is promoting solutions that benefit both sides, including faster resolution, lower costs, and the preservation of relationships, given that insurers and clients often continue working together. Addressing claims that insurers tend to underpay, he described this as a misconception, noting that expectations often exceed what is stipulated in contracts. He warned that pushing for unjustified compensation could drive up insurance premiums, making services more expensive for everyone. He also questioned the basis of some compensation benchmarks, such as the Rwf3,000 daily rate, suggesting the need for comprehensive studies to establish realistic standards. Citing a recent accident in Shyorongi that resulted in fatalities and injuries, Bahizi said compensation claims exceeded Rwf800 million, raising concerns about sustainability if such cases become frequent. Moïse Nkundabarashi, President of the Rwanda Bar Association, addressed concerns about lawyers steering clients toward litigation. He emphasised the importance of dialogue among stakeholders, noting that lawyers play a critical role in both litigation and ADR processes. While awareness of ADR is still growing, he expressed optimism that it will gain wider acceptance over time. Nkundabarashi stressed that lawyers have a duty to ensure fair outcomes, adding that dispute resolution should not be viewed as one-size-fits-all, especially in cases where ADR may not appear fair to one party. Meanwhile, Marc Rugenera, Chief Executive Officer of Radiant Insurance Company, said the firm has already begun adopting ADR and plans to scale up its use. Judiciary data shows there are currently 892 insurance-related cases in courts compared to just 139 resolved through ADR, highlighting the need to expand the use of alternative dispute resolution mechanisms.
