CAR INSURANCE IN RWANDA
Many Rwandans have a hard time comprehending Motor Insurance covers. Understanding Motor Insurance covers in Rwanda is important for every Rwandan car owner. In the event of loss or injury, this knowledge helps the insured clients avoid any disagreements with their insurer.
MOTOR INSURANCE COVERS
There are two different Motor Insurance covers. They include: Comprehensive and Third Party Only.
Comprehensive cover
This is the Motor Insurance cover that guarantees the insured party a clear conscience. The cover owns damages to the Insured vehicle, fire, theft and legal liability of the Insured for both property damages and bodily injuries within the geographical limits specified herein and for amounts provided by the Rwandan Motor Third Party Liability law.
Therefore, it covers the insured party against a wide range of risks and compromises the benefits offered by Third Party Fire and Theft with material damage. The Third Party Fire and Theft Insurance Cover protects the car owner against any expenditure to third parties in the car in the event of an accident. It also covers the car against the risks if fire and theft. This cover is more comprehensive than the Third Party Only (TPO).
It protects the car owner against liabilities to third parties in the car in the event of an accident. It also covers the car against the risks of fire and theft.In addition, it covers the insured party against damage arising from accidents to their car.The insured party should fully understand the meanings of accident and accidental damage. They should also clearly understand exclusions as spelled out by the insurer.Another advantage that comprehensive cover offers is the fact that in the case of accidental damage or injury, the insurance company gives the insured party a loan car. Temporarily, the insured party can move around and continue with their daily activities while their car is being fixed.The cover also allows the insured party to cover against uncommon risks such as terror attacks and violence resulting from political and civil unrest.
Third Party Only(TPO) CoverThis is the bare minimum cover in Motor Insurance. It is a must for every car in Rwanda to have this cover; it is a requirement of the law.
This cover does not provide personal protection to the car owner. Therefore, as the name suggests, it only covers third parties such as family/friends that are in the car in the event of an accident.
If the accident damages the car, it is the car owner’s responsibility to repair it.
If you operate a car-valeting company or a Body Work and Service and Repairs the motor trade insurance got you covered.
The following are some of the most common aspects that can be covered by motor trade policies:
Road risk: If you take vehicles onto the public highway then you need road risk cover. This could be the case if your staff is delivering cars to buyers, or if you run a mechanics business and you need to take cars out to check faults. If your business doesn’t require vehicles to be driven on public roads, you could consider parts-only cover, which is much more basic.
As with normal motor insurance, you can opt for road risk cover, which is comprehensive, third-party, or third-party, fire and theft.
Employers’ liability insurance: This protects your business against claims from your staff – you should have this if you have employees regardless whether they’re driving vehicles or not.
Public liability insurance: This covers you and your workers against claims made by customers or members of the public.
Product liability insurance: This offers your business protection if you fit a new part to a customer’s vehicle, but the part then turns out to be defective.
Material damage cover: This covers any vehicles or equipment you own, for example if you run a motor dealership it means your unsold vehicles are insured.