Taxi moto operators reassured over hiked insurance premium

On 25 August 2022 at 03:18

President Paul Kagame has promised motorcyclists to follow up the issue of high insurance premium which was raised on the first day of his four-day citizen outreach visit to Southern and Western provinces.

The citizen outreach visit which began on Thursday 25th will be concluded on 28th August 2022.

On the first day, the Head of State visited Ruhango District and interacted with residents at Kibingo ground where they have been given floor to raise concerns.

A motorcyclist identified as Pierre Bizimana has told the Head of State that commercial motorcyclists face serious issues affecting their business including hiked insurance premium.

The Minister of Infrastructure, Dr. Ernest Nsabimana has explained that there are efforts underway to solve the issue durably. He revealed that Rwanda Utilities Regulatory Authority (RURA), the National Bank of Rwanda (BNR) and the ministry he leads are working together to find a solution in two months.

Reacting to the issue, President Kagame promised a follow up to have the issue solved.

“I will also give it attention that it will have been solved,” he said.

On 13th March 2022, motorcyclists staged protests to demand action on issues affecting their business including high cost associated with using fare meters and hiked insurance premium.

These include poor cooperatives’ management and irrelevant contributions that do not generate returns, hiked insurance premium, difficulties in motorcycle ownership transfer and losses incurred by fare meter tariffs among others.

The insurance premium which taxi moto operators complained about, increased three folds.

For the past three years, motorbike insurance premium rose from Rwf45,000 to Rwf153,200 for a motorcycle that was manufactured five years ago or less.

The premium increased to more than Rwf180, 000 for those that were made more than 10 years ago.

Protesting motorcyclists demanded that the prices be revised and reduced to a reasonable amount.

Following the demonstrations, the Ministry of Infrastructure in collaboration with relevant stakeholders in transport sector in Kigali City released resolutions reassuring motorcyclists on issues affecting their business in the same month.

These include the cancellation of mandatory contributions to their cooperatives and transport fare increment for the first two kilometers for those using meters.

At the time, the Minister of Infrastructure, Dr. Nsabimana said that the resolutions made public on Friday 25th February 2022 were reached after assessing raised concerns.

Among others, motorcyclists’ cooperatives in Kigali were reduced from 41 to 5 where they had to operate differently from the previous ones. Else, some services that motorcyclists would receive from cooperatives were transferred to RURA.

Motorcyclists’ contributions to cooperatives were also annulled, operators paying tax in four months were exempted from late payment charges and penalties while fees paid to RURA were reduced.

However, Minister Nsabimana revealed that the issue of hiked insurance premium was being reviewed.

Insurers attribute the hike in motorbike insurance cost to heavy bills paid in compensations for injuries or deaths caused by taxi moto accidents.

Many insurance companies in the country do not provide insurance package for motorbikes due to incurred losses.

Rwanda registers over 44,000 motorcyclists across the country of whom more than 25,000 operate in Kigali City.

President Kagame has promised follow up on raised issue of 'hiked insurance premium'.