Tanzania Insurance Regulatory Authority finalises regulations
Dr. Baghayo A. Saqware the commissioner of Insurance Tanzania
What you need to know:
- Apart from enhancing financial inclusion and increasing insurance uptake, the move by the government also seeks to compel public building owners or facilities that attract lots of people
Dar es Salaam. The Tanzania Insurance Regulatory Authority (Tira) has completed the drafting of regulations for implementing mandatory insurance for public markets, commercial buildings, imported goods, marine vessels, ferries and pontoons.
The move comes within days after the passing of the Finance Act 2022, which among other issues, amends the Insurance Act CAP, 394 to expand the scope for mandatory insurance to include public markets, commercial buildings, imported goods, marine vessels, ferries and pontoons.
“We’ve already drafted the regulations. We’re working with the Ministry of Finance and Planning on this,” the Commissioner for Insurance, Dr Baghayo Saqware, told The Citizen yesterday.
Apart from enhancing financial inclusion and increasing insurance uptake, the move by the government also seeks to compel public building owners or facilities that attract lots of people such as football ground or markets to pay compensation to people who have been injured as a result of a disaster that may occur within those buildings.
The move will raise citizens’ risk protection level in line with the Financial Development Master Plan (FDMP) which seeks to ensure that up to 50 percent of adults are insured by the year 2030.
Dr Saqware told The Citizen at the ongoing 46th Dar es Salaam International Trade Fair (DITF) that insurers should now think about designing friendly products for customers instead of relaxing and hoping to make easy cash due to the mandatory provision.
“Being mandatory does not mean that Tira will be going out to the streets to find people and tell them about the mandatory insurance. Companies must do that. They need to advise their clients in advance so that they buy insurance products instead of waiting until the disaster strikes,” he said.
Meanwhile, he said imported cargo will be required to buy insurance covers from local companies that have been registered in this country.
“This is a very sensitive area which we believe will expand the scope of insurance, the tax component and economy in general. In the past, the practice was that someone would order the cargo abroad and pay for Cost, Insurance and Freight right from where the products come from,” he said.
