“We have found that we could implement the new prices proposed in the study in two phases; we will start by raising premiums by 60% in this year and add the 40% next year,” the ASSAR’s representative, Kanamugire Gaudens told the press on Sunday.
This means that if the insurance of a vehicle was RWF30, 000, its new price will be Rwf50,000 but on a yearly basis, it will be Rwf42,000 based on the revision.
For a taxi that had to pay Rwf44,000 per year will now pay Rwf38, 000; according to the revision.
Kanamugire said those who had already paid their premiums according to the new prices, will either be refunded or receive a credit note based on the revised prices.
It is a decision that the association claims it has taken after receiving complaints of the vehicles’ owners.
The revision follows a premiums hike a fortnight ago that saw motor vehicle insurance premiums and the comprehensive packages increase from 40% to 73%, which attracted complaints among the public.
Kanamugire said that increasing the premiums was necessary because those set in 2008 were outdated and not benefiting insurers.
The Central Bank also asserted that the previous prices were wrecking insurers into losses and were not updated to meet the variable costs of vehicles and spare parts. In 2013, a study showed that the prices were too low and needed to be raised.
Leave a Reply