{"id":114433,"date":"2025-11-01T16:45:38","date_gmt":"2025-11-01T16:45:38","guid":{"rendered":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation"},"modified":"2025-11-01T16:45:38","modified_gmt":"2025-11-01T16:45:38","slug":"insurers-warn-of-premium-hike-over-rwf3000-compensation","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/rwanda\/policy\/insurers-warn-of-premium-hike-over-rwf3000-compensation","title":{"rendered":"Insurers Warn of Premium Hike Over Rwf3,000 Compensation"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Rwanda. <\/strong><\/span>Insurance companies have raised concerns over a provision in the newly enacted law on accident victim compensation that maintains the Rwf3,000 minimum daily compensation for victims without verifiable income.<\/p>\n<p>The concerns were voiced on October 31, during a session between members of the Rwanda Insurers Association (ASSAR) and the Senate Committee on Foreign Affairs, Cooperation and Security. The meeting focused on evaluating measures to reduce road accidents and enhance safety.<\/p>\n<p>The insurers argued that the amount is high and threatens the financial sustainability of the insurance sector. With this, they warned that an increase in insurance premiums may be inevitable.<\/p>\n<p>The Rwf3,000 daily compensation rate was first established by the Supreme Court in 2016 in a ruling concerning accident victims without verifiable income. Since then, it has served as a legal precedent.<\/p>\n<p>In June 2025, the government, through the Ministry of Finance and Economic Planning, tabled a bill before Parliament to revise this standard.<\/p>\n<p>The draft of the bill proposed lowering the base compensation to Rwf2,000 per day (Rwf60,000 per month) \u2014 the equivalent of the tax-free income cap in Rwanda \u2014 for victims without verifiable income.<\/p>\n<p>However, when the bill was passed and a resulting law was published in the Official Gazette on October 21, 2025, it retained the Rwf3,000 daily rate.<\/p>\n<p>Insurers\u2019 concerns<\/p>\n<p>Marc Rugenera, CEO of Radiant Insurance Company, told senators that one of the main challenges affecting the sector\u2019s profitability is the high compensation imposed by courts.<\/p>\n<p>He illustrated the impact \u2013 especially when people who die in accidents are young.<\/p>\n<p>\u201cThe Rwf3,000 daily rate amounts to Rwf90,000 per month \u2014 or more than Rwf1 million per year \u2014 even for a person without a job. When multiplied by the number of years until retirement age (65), the total becomes unsustainable for insurers.\u201d<\/p>\n<p>Rugenera added that some employees with verifiable but low incomes \u2014 less than Rwf3,000 per day \u2014 tend to claim compensation based on the higher benchmark, even though their official earnings are below that threshold.<\/p>\n<p>\u201cThis was one of the issues the new law was expected to resolve, but the Rwf3,000 rate was maintained,\u201d he said, citing examples such as construction helpers and garage workers.<\/p>\n<p>He warned that premium hikes are likely.<\/p>\n<p>\u201cIf the total premiums collected cannot cover the compensation owed to all accident victims, insurers will have no choice but to increase rates.\u201d<\/p>\n<p>According to the Rwanda Utilities Regulatory Authority (RURA), motorcycles account for over 80 per cent of road accidents. Motorcycle taxi operators have repeatedly complained about the high cost of insurance, which currently stands at Rwf180,000 per year for motorcycles less than five years old.<\/p>\n<p>Alexis Muhizi, CEO of BK Insurance, said that studies show that premiums for motorcycles could rise even higher.<\/p>\n<p>On factors that could help prevent a sharp rise in insurance premiums, Muhizi said, \u201cthe first measure would have been to reduce the minimum compensation amount [the Rwf3,000 daily rate set by the court for accident victims without verifiable income].\u201d<\/p>\n<p>Relevant provisions in the new law<\/p>\n<p>Article 12 of the new law states that compensation is determined based on the extent of the damage and the victim\u2019s income. If a victim or beneficiary cannot prove the victim\u2019s actual pre-accident income, compensation is calculated at Rwf3,000 per day.<\/p>\n<p>This base may be revised upwards through a ministerial order, the law says, adding that the order also determines the methods, requirements, and criteria for calculating compensation.<\/p>\n<p>Insurers urged the government to consider their concerns when drafting these ministerial orders.<\/p>\n<p>Promoting insurance awareness<\/p>\n<p>Muhizi said that insurers have set aside a dedicated annual budget of Rwf60 million for nationwide insurance education campaigns, using means including traditional and social media platforms. The funds are expected to grow in the coming years, he added.<\/p>\n<p>\u201cMany people still misunderstand or undervalue insurance,\u201d Murangwa said. \u201cWe appreciate that insurers are taking steps to change this mindset and we encourage them to continue.\u201d<\/p>\n<p>Senator Hadija Murangwa Ndangiza, Chairperson of the Senate Committee on Foreign Affairs, Cooperation and Security, commended insurers for their efforts to raise public awareness about the value of insurance.<\/p>\n<p><strong>For More News And Analysis About <span style=\"color: #ff6600\">Rwanda<\/span> Follow <span style=\"color: #ff6600\">Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Rwanda. Insurance companies have raised concerns over a provision in the newly enacted law on accident victim compensation that maintains the Rwf3,000 minimum daily compensation for victims without verifiable income. The concerns were voiced on October 31, during a session between members of the Rwanda Insurers Association (ASSAR) and the Senate Committee on [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":114432,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,29,14],"tags":[8570,8571,8572,8569,6711,6823,3749,758],"class_list":["post-114433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-head-lines","category-policy","tag-accident-compensation-law","tag-assar","tag-insurance-premiums","tag-insurers","tag-motorcycles","tag-road-accidents","tag-road-safety","tag-rwanda"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Insurers Warn of Premium Hike Over Rwf3,000 Compensation - Rwanda<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Insurers Warn of Premium Hike Over Rwf3,000 Compensation\" \/>\n<meta property=\"og:description\" content=\"Africa-Press &#8211; Rwanda. Insurance companies have raised concerns over a provision in the newly enacted law on accident victim compensation that maintains the Rwf3,000 minimum daily compensation for victims without verifiable income. The concerns were voiced on October 31, during a session between members of the Rwanda Insurers Association (ASSAR) and the Senate Committee on [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation\" \/>\n<meta property=\"og:site_name\" content=\"Rwanda\" \/>\n<meta property=\"article:published_time\" content=\"2025-11-01T16:45:38+00:00\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Insurers Warn of Premium Hike Over Rwf3,000 Compensation\",\"datePublished\":\"2025-11-01T16:45:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation\"},\"wordCount\":686,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/11\/sm_1762005127.230053.jpg\",\"keywords\":[\"Accident compensation law\",\"ASSAR\",\"Insurance premiums\",\"Insurers\",\"MOTORCYCLES\",\"Road accidents\",\"Road safety\",\"Rwanda\"],\"articleSection\":[\"all news\",\"head lines\",\"Policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation\",\"url\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation\",\"name\":\"Insurers Warn of Premium Hike Over Rwf3,000 Compensation - Rwanda\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/11\/sm_1762005127.230053.jpg\",\"datePublished\":\"2025-11-01T16:45:38+00:00\",\"author\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#primaryimage\",\"url\":\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/11\/sm_1762005127.230053.jpg\",\"contentUrl\":\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/11\/sm_1762005127.230053.jpg\",\"width\":1000,\"height\":613,\"caption\":\"Insurers Warn of Premium Hike Over Rwf3,000 Compensation\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.africa-press.net\/rwanda\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Insurers Warn of Premium Hike Over Rwf3,000 Compensation\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#website\",\"url\":\"https:\/\/www.africa-press.net\/rwanda\/\",\"name\":\"Rwanda\",\"description\":\"Just another Africa News Agency Sites site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.africa-press.net\/rwanda\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\",\"name\":\"cfeditoren\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Insurers Warn of Premium Hike Over Rwf3,000 Compensation - Rwanda","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation","og_locale":"en_US","og_type":"article","og_title":"Insurers Warn of Premium Hike Over Rwf3,000 Compensation","og_description":"Africa-Press &#8211; Rwanda. Insurance companies have raised concerns over a provision in the newly enacted law on accident victim compensation that maintains the Rwf3,000 minimum daily compensation for victims without verifiable income. The concerns were voiced on October 31, during a session between members of the Rwanda Insurers Association (ASSAR) and the Senate Committee on [&hellip;]","og_url":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation","og_site_name":"Rwanda","article_published_time":"2025-11-01T16:45:38+00:00","author":"cfeditoren","twitter_card":"summary_large_image","twitter_misc":{"Written by":"cfeditoren","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#article","isPartOf":{"@id":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation"},"author":{"name":"cfeditoren","@id":"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"headline":"Insurers Warn of Premium Hike Over Rwf3,000 Compensation","datePublished":"2025-11-01T16:45:38+00:00","mainEntityOfPage":{"@id":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation"},"wordCount":686,"commentCount":0,"image":{"@id":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/11\/sm_1762005127.230053.jpg","keywords":["Accident compensation law","ASSAR","Insurance premiums","Insurers","MOTORCYCLES","Road accidents","Road safety","Rwanda"],"articleSection":["all news","head lines","Policy"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation","url":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation","name":"Insurers Warn of Premium Hike Over Rwf3,000 Compensation - Rwanda","isPartOf":{"@id":"https:\/\/www.africa-press.net\/rwanda\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#primaryimage"},"image":{"@id":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/11\/sm_1762005127.230053.jpg","datePublished":"2025-11-01T16:45:38+00:00","author":{"@id":"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"breadcrumb":{"@id":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#primaryimage","url":"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/11\/sm_1762005127.230053.jpg","contentUrl":"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/11\/sm_1762005127.230053.jpg","width":1000,"height":613,"caption":"Insurers Warn of Premium Hike Over Rwf3,000 Compensation"},{"@type":"BreadcrumbList","@id":"https:\/\/www.africa-press.net\/rwanda\/all-news\/insurers-warn-of-premium-hike-over-rwf3000-compensation#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.africa-press.net\/rwanda\/"},{"@type":"ListItem","position":2,"name":"Insurers Warn of Premium Hike Over Rwf3,000 Compensation"}]},{"@type":"WebSite","@id":"https:\/\/www.africa-press.net\/rwanda\/#website","url":"https:\/\/www.africa-press.net\/rwanda\/","name":"Rwanda","description":"Just another Africa News Agency Sites site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.africa-press.net\/rwanda\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb","name":"cfeditoren"}]}},"_links":{"self":[{"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/posts\/114433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/comments?post=114433"}],"version-history":[{"count":0,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/posts\/114433\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/media\/114432"}],"wp:attachment":[{"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/media?parent=114433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/categories?post=114433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/tags?post=114433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}