Legal Alert | New Tanzanian Minimum Insurance Premiums & Insurance Law Changes


The Miscellaneous Amendments Act (No. 2) of 2017 amends the Insurance Act (Act No. 10 of 2009, Laws of Tanzania), with respect to foreign ownership of insurance brokers, the mechanics of payment (and minimums) for insurance premiums and the requirement to obtain insurance only through Tanzanian insurers.

This new Act has been approved by the National Assembly and will shortly come into force, on a date to be appointed in the Government Gazette. As the final approved text of the Act is not yet publicly available, this Alert assumes that the Act is identical to the Bill presented to the National Assembly on its first reading on 29 June 2017.

Ownership & Payment of Brokers

The changes require insurance brokers to be at least two thirds (66+%) owned and controlled by Tanzanian citizens. This is a 100% increase from the previous local-participation requirement (of one third (33+%).

Further, customers would have to pay insurers all premiums directly, even where they are using brokers. Brokers would only be entitled to receive their commissions directly from the insurers (instead of taking them out of premiums from customers) – and there are heavy penalties for contravention of this.

Minimum Insurance Premiums

The amendments enable the Commissioner of Insurance to set minimum rates of premiums payable for different classes of insurance, by publishing orders in the Government Gazette.

Requirement to Obtain Insurance only through Tanzanian Insurers

Insurance cover for a Tanzanian resident person or company may only be placed with a Tanzanian registered insurer. The exception to this, where classes of insurance are not available from a Tanzanian registered insurer, is now even further curtailed.

The changes make clear that all ground transport insurance, marine insurance and air cargo insurance covers for Tanzanian imports must be effected by a Tanzanian insurer.

If you have any questions regarding this legal alert or require more information on the impact of these new laws, please contact Sonal Sejpal or Shamiza Ratansi.

For more information about ATZ Law Chambers, please visit our website.

Sonal Sejpal
Shamiza Ratansi
Managing Partner

The content of this alert is intended to be of general use only and should not be relied upon without seeking specific legal advice on any matter.