A devastating fire at Mu Cyerekezo garage in Gatsata Sector, Gasabo District has left the owner grateful for his insurance coverage, which protected him from significant financial loss.
The incident, which occurred on Tuesday, July 11 caused extensive damage to the premises and several vehicles.
The garage, owned by Eric Gasinzigwa, has been in operation for over a year and a half. Gasinzigwa rents the workspace from Icyerekezo Gatsata cooperative, an organization that brings together mechanics and dealers in automobile spare parts.
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Fortunately, Gasinzigwa had purchased insurance for his garage from Old Mutual insurance company. This proved to be a wise decision, as it was the first fire incident at the garage during that period. The owner emphasized the importance of insurance coverage, especially in their line of work where vehicles carry inherent risks.
"Cars that we deal with have risk, they are like electricity," Gasinzigwa explained. "It is important to have insurance, even people who do not have it should buy it because it helps a lot." He estimated that his insurance coverage saved him from incurring a loss of between Rwf30 and Rwf40 million.
According to Police Spokesperson CP John Bosco Kabera, the fire damage is estimated at Rwf30 million, and four vehicles were affected which include; Toyota Hillux, Toyota Starlet, Tucson, and Suzuki Vitala. The incident was determined to have been caused by a faulty wiring system.
Robert Mugabe, the manager of Icyerekezo Gatsata cooperative and a witness to the fire, described how the fire broke out during wiring repairs on a vehicle. Sparks from the wires made contact with the fuel tank, resulting in a flame.
Efforts were made to extinguish the fire using attached fire extinguishers, but unfortunately, a petrol tank burst, causing the fire to intensify. Nearby vehicles were swiftly moved to prevent further damage.
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This fire incident was one of three that occurred on the same day. The others included a fire that destroyed property in Kimironko, Gasabo District, and another that affected a building housing the Kinyarwanda newspaper Imvaho Nshya in Gikondo Sector, Kicukiro District. However, prompt action by authorities prevented these fires from causing widespread destruction.
Recent data from the Rwanda Insurers Association (ASSAR) reveals a decline in the number of people acquiring fire insurance. From 28,625 customers in 2019, the numbers dropped to 28,495 in 2020, and further down to 25,927 in 2021—a reduction of approximately 10 percent.
The report indicates that only insurance covers required by banks to protect mortgages, and a few customers who appreciate the risks, maintained their fire insurance policies during the pandemic years.