Rwanda to compensate victims of non-insured accidents through insurance premiums and tourism revenue

By The Inspirer.

Kigali, September 18, 2025 – Rwanda will now compensate victims of non-insured accidents using funds from insurance premiums and tourism revenue, following the passage of a new accident victim compensation bill by Parliament on September 17.

Under the law, 10 percent of premiums collected from compulsory third-party motor vehicle liability cover will be allocated to victim compensation. In addition, five percent of the gross annual income generated by the Rwanda Development Board from activities in protected areas will support the scheme.

Compensation will be determined based on the severity of damages and the victim’s income. Where proof of prior income is unavailable, a standard tax-free threshold of Rwf60,000 per month (Rwf2,000 per day) will be used.

The bill consolidates provisions from the 2001 law on motor vehicle accidents and the 2011 law on damages caused by animals, updating them to clarify compensation for permanent disability, death, or material damages.

Victims with permanent incapacity are entitled to financial loss, pretium doloris, aesthetic injury, loss of marriage opportunities, and career prospects. Families of deceased victims are entitled to funeral expenses, lost income, and moral damages. For children under 16, compensation covers potential earnings from age 16 to retirement.

MP Hope Tumukunde Gasatura explained that the law aims to curb inflated claims by requiring electronic invoices recognized by tax legislation to support refunds.

Payments without such invoices will be adjusted based on prevailing market prices. MP Dianne Mukasine raised concerns about accident-related costs lacking receipts, such as private hospital bills, with Tumukunde clarifying that victims may use any government-approved hospital.

Questions about high-risk drivers, including drunk driving, were raised by MP Ernest Nshimiyimana. Tumukunde indicated that a new law will define penalties, but the vehicle owner remains liable for compensation.

Those eligible include individuals injured or whose property is damaged in insured or non-insured accidents, victims injured by animals in or outside protected areas as confirmed by the Minister in charge of Environment, and beneficiaries of those killed under such circumstances.

The new bill seeks to ensure timely, fair compensation for accident victims while addressing previous legal gaps, providing a structured and transparent framework to protect individuals and families affected by accidents in Rwanda.