The cash deposits of the Automobile Guarantee Fund (AGF), have hit over Rwf 1 billion.
The AGF was put in place by the government to compensate people injured or those whose property is destroyed by unidentified or uninsured automobiles.
Bernardin Ndashimye, the Director General of AGF, made the revelation of the Fund’s financial status during an interview with The New Times.
He noted that in 2006, the institution only had Rwf 100 million in deposits and by 2007, this had shot up to Rwf 200 million.
Ndashimye also pointed out that as a result of strong collaboration with insurance companies, contributions from insurance institutions increased from Rwf 172 million in 2007 to Rwf 400 million in 2011.
“The fund has so far made a tremendous achievement in increasing investment cash deposits,but there has been a lot of undesired side effects, like receiving claims that are invalid or fraudulent,” Ndashimye said.
He said that the Rwf 1billion milestone would enable the fund to reach out to more accident victims as well as venturing into real estate business.
Ndashimye said that Rwf 406,975,307 was spent on compensating victims of accidents in the past three years.
He continued to say that as a result, claims received by the fund increased from 42 in 2007 to 142 in the 2010/11 financial year.
According to Ndashimye, the average period spent handling an accident case had gone to 90 days from 211 days previously.
He said that the fund’s management intends to further reduce this to between 60 and 30 days, to promote efficiency in handling of cases.
The fund has also designated a focal person at the Prosecutor General’s Office to follow up on cases adjudicated to courts. Ndashimye cited some of these as those that seek a court order to sell impounded cars to reimburse the fund.
Ndashimye stated that the fund also works with hospitals in compiling medical records which traffic victims present at AGF when claiming compensation.
He added that hospitals carry out counter-expertise for cases submitted by insurance companies on behalf of their clients.
“I am happy that the fund’s investment cash deposits have exceeded Rwf 1 billion this year and we have set another target of getting at least Rwf 1.2 billion by the end of June next year,” Ndashimye said.