In 2018, insurers announced the adjustment of vehicle insurance premiums, claiming they were facing losses.
According to figures from BNR, the cost incurred by compensations for accident damages rose by 18% in 2022.
Tragically, vehicle-related accidents resulted in the loss of 729 lives in 2022, compared to 655 and 687 deaths registered in 2021 and 2020, respectively.
Despite public outcry regarding the disputed vehicle insurance premiums, BNR emphasized that the increase was necessary due to the rising number of accidents.
For instance, the annual premium for motorbike taxis increased from Rwf140,000 to Rwf180,000.
Similarly, the premium for trucks like HOWO, which carry construction equipment, rose from around Rwf300,000 to over Rwf700,000 per year. Taxi cab insurance premiums increased from Rwf179,992 to more than Rwf350,000, while premiums for other vehicles increased from Rwf100,000 to Rwf160,000.
During a press conference on Thursday 11th May 2023, Governor Rwangombwa attributed the higher prices to the increased amount paid in compensation for road accident damages.
He revealed that accidents had been on the rise over the past two years, leading to an increase in losses incurred through compensation.
Vehicle damage-related losses alone rose from Rwf2.6 billion to Rwf4.7 billion. In response to the situation, insurers sought alternative measures to address the issue.
Rwangombwa further explained that the depreciation of currencies on a global scale had also contributed to the elevated prices of spare parts for vehicles.