Revisit decision to hike car insurance premiums

At the end of the day, it’s the average citizen who will pay the price for allowing the insurance companies to work in a mafia-like manner.
A traffic police officer guides motorists in Kigali's Central Business District. Motorists have decried the recent increase of insurance premiums by 73 per cent. File.
A traffic police officer guides motorists in Kigali's Central Business District. Motorists have decried the recent increase of insurance premiums by 73 per cent. File.

Editor,

RE: “Public decries high cost of car insurance” (The New Times, January 11). The National Bank of Rwanda’s reaction seems a little laissez-faire. This price hike will have a ripple effect that affects other regulated services and ultimately the average Rwandan. Will bus operators be able to hike their bus fares by some 40 per cent to cover this increase in costs? Will goods transporters up their prices to cover their costs as well? Will we see the price of ferrying produce or goods from the ports to the markets increase?

At the end of the day, it’s the average citizen who will pay the price for allowing the insurance companies to work in a mafia-like manner.

Claude Mugabo

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I hope the regulator will understand the concerns, particularly the need for gradual increment and prior consultation with consumers. Should the bank keep quiet, a bad precedent will be set.

William

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Good points. Insurance companies and the regulator – the central bank – should be people-centered and make the right decision.

Much as they are doing business for profit, such basic utilities need to undertake public awareness and consultations on such important decisions. That’s what you expect in a democratic society.

Listening to their arguments, insurers claimed they were incurring huge losses in motor cycle insurance. However, this is one section of the insured products.

What happens on motor cycle does not necessarily apply across the board and both players need protection.

Ladislas Ngendahimana