NMB, Strategis partner for cargo container guarantee scheme

Dar es Salaam. NMB Bank Plc and Strategis Insurance yesterday unveiled a new product that relieves transporters of the burden of paying $3,000 (about Sh7.03 million) to container owners as a guarantee.

Dubbed “Container Insurance Guarantee Scheme,” the product will allow the transporters to just insure the containers through the two companies, at a slightly cheaper cost.

A business person or a transport company was obliged to pay around $3,000 to the container owner as a guarantee and also property insurance that covers compensation for property loss during transportation by road or rail.

“This new product will help both individuals and companies as there will be no need to make a deposit for each container but one will have to insure the containers at a slightly cheaper cost,” the head of Bancassurance at NMB, Mr Martin Massawe said in Dar es Salaam yesterday.

He said the product will cover both individuals and companies that transport cargo using 10, 20 and 40 feet containers. The Acting Group CEO for Strategis Insurance Tanzania Ltd, Flora Minja said the company has yielded itself credibility from its clients during the two decades that it has been providing insurance services in Tanzania. “Innovation is one of our core values that is why we came up with the ‘Container Guarantee Insurance scheme’ product into place,” she said.

Gracing the event, the director of supervision from Tanzania Insurance Regulatory Authority (Tira), Mr Abubakar Ndwata said the new product will be a long-term solution to some of the challenges undermining growth of the transport sector.

“This is a very good initiative and we believe it will help to expand the scope of access to insurance for all the stakeholders in the transport sector value-chain and ultimately reduce transportation costs. As you all know, the transport sector is a catalyst to economic development,” he said.