Insurance sector harmonises motor vehicle insurance certificates

Local insurers will, beginning September, adopt harmonised motor insurance certificates which will replace certificates issued by individual firms. The move by Rwanda Insurance Association is aimed at bringing uniformity of proof of Motor Third-Party Insurance across the insurance market. According to the chairman of the association Gaudens Kanamugire, the move is also aimed at enabling law enforcers discern between real and fake documentation. The new documentation will also reduce the use of counterfeits which a section of industry players say has increasingly become popular in the sector. Under the new harmonised system, the motor insurance certificates are categorised under private vehicles (Yellow certificate), Commercial vehicles (Blue certificate) and passenger service vehicles (red certificates). According to Kanamugire, the new certificates also have a QR code, which can be scanned via smartphone to reveal the certificate class and its serial number. The certificates will be issued beginning September this year. However, motor vehicle insurance certificates issued previously will remain valid until their expiry. The new certificates are part of a move by Association of Insurers, (ASSAR), to safeguard the insurance sector and improve professionalism and returns. New developments in the insurance sector include a recent revision of insurance premiums for motor vehicles, which is being implemented in two phases. The increment is being implemented in two phases beginning with 60 per cent and then 40 per cent. There are about 16 licensed insurance firms in the country but a significantly low insurance penetration rate, less than 4 per cent. The sector is making adjustments and progress in recent months with the solvency ratio of the sector improving significantly in 2017 to stand at 193 per cent at the end of the year. editorial@newtimes.co.rw

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Insurance sector harmonises motor vehicle insurance certificates