CHAPTER 169 THE MOTOR VEHICLES INSURANCE ACT [PRINCIPAL LEGISLATION] . Arrangement of Sections AG of O n Section Title io issm 1. Short title. r t p e 2. Operation of Act. ho u 3. Interpretation. it d w 4. Motor vehicles to be insured against third party risks. ute 5. Requirements in respect of insurance policies. tribis 6. Requirements in respect of securities. d or 7. Certificate of insurance. ce d 8. Certain conditions in policies of insurance of no effect u pro .d 9. Production of certificate of Insurance. re 10. Duty of insurers to satisfy judgments against p e ye rbsons insured in respect of third. a m 11. Penalty for false statement and willful avoooi kdance of policy. s b12. Duty of persons against whom claimhsi are made to give information as to insurance. t of 13. Duty to surrender certificate o pfa i rnt surance on cancellation of policy. 14. Procedure on application .f oNro motor vehicle licence. 15. Rights of third partiesr a d vegainst insurers on bankruptcy of insured. 16. Avoidance of restriecsti eons on scope of policies covering third party risks. r 17. Provision with hretsgard to visitors. 18. Power to mall kr ieg rules. 19. Penalty ifao. rA offences. an an z T nt of me ern ov 5 G 20 2 © 437 CHAPTER 169 THE MOTOR VEHICLES INSURANCE ACT . An Act to make provision for insurance against third party risks arising out AG of the use of motor vehicles. f O n o [1st November, 1946s]iois [GN No. 412 of e1r9m61] Ords Nos. t p 18 of 1945 ou 6 of 1948 ithw 47 of 1949 d e 33 of 1954 t bu 34 of 1957 i dis tr d o r uc e Short title 1. This Act may be cited as the Motoprro d Vehicles Insurance Act. ree Operation of Act 2. The President may, by notaiyc be in the Gazette, suspend or restrict the operation of thiosk mAct. bo is Interpretation 3. In this Act, unlesso tf h the context otherwise requires- Ord. No. 47 of 1949 s. 2 “driver”, where a pa rst eparate person acts as steersman of a motor vehi.cNl o e, includes that person as well as any other person e d rvne gaged in the driving of the vehicle, and the word re“ sderive” shall be construed accordingly; “mot ts igohr vehicle” means a mechanically propelled vehicle . Ai lln r tended or adapted for use on roads, but does not an ia include a steam traction engine, a steam roller or a vehicle nz Ta constructed and intended for use exclusively on rails; of nt “owner” in relation to a vehicle which is the subject of a nm e hiring agreement or a hire-purchase agreement, means r ov e the person in possession under that agreement; 5 G “policy of insurance” includes a cover note; 20 2 © “road” means any highway and any other road to which the public has access and includes bridges over which a road passes. 438 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] Motor vehicles to 4.–(1) Subject to the provisions of this Act, it shall not be be insured against third party risks lawful for any person to use, or to cause or permit any other Ord. Nos. person to use, a motor vehicle on a road unless there is in force 6 of 1948 s. 2 33 of 1954 s. 2 in relation to the use of the vehicle by that person or that other . 34 of 1957 s. 2 person, as the case may be, such a policy of insurance or such G OA a security in respect of third party risks as complies with the n o f requirements of this Act. io iss (2) Where a person acts in contravention of this sepce rtmion he shall be liable to a fine not exceeding one hundredo up t ounds or its equivalent in Tanzania shillings or to impris ownithment for d a term not exceeding six months, or to both te b usuch fine and imprisonment, and a person convicted of and o ri isfft ence under this section shall, unless the court for speciald or re asons thinks fit to order otherwise and without prejudiced tuo ce the power of the court to order a longer period of disqualeifip rcoation, be disqualified for holding or obtaining a driving bleic rence for a period of twelve months from the date of the coay m nviction. (3) The provisions of suokbo bsection (1) of this section which relate to the use of a m tho ist or vehicle on a road shall not apply- (a) to any persortn o flawfully using a motor vehicle owned by the Gover npao ment or a public corporation; or (b) to aney N d . authorised person while he is lawfully using, in rv seaccordance with any provision contained in the re Cap. 168 htsR oad Traffic Act, a motor vehicle owned by some other g ll r i person, for the purpose of inspecting or detaining such ia. A vehicle or for any other purpose, whether similar to the n nz a foregoing or not, specified in such provision. Ta of (4) The provisions of subsection (1) of this section which t en relate to a person causing or permitting some other person to rnme use a motor vehicle on a road shall not apply to the owner of a v G o motor vehicle by reason only of its use by an authorised person, 25 20 where such authorised person has taken charge of such vehicle © Cap. 168 under any provision contained in the Road Traffic Act for the purpose of inspecting, detaining such vehicle or for any other purpose, whether similar to the foregoing or not, specified in such provision 439 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] (5) For the purpose of this section, “authorised person” means any officer or person authorised under any provision Cap. 168 contained in the Road Traffic Act to use a motor vehicle owned by some other person. AG. Requirements 5. In order to comply with the requirements of section 4, the O in respect of n o f o insurance policies policy of insurance shall be a policy which- i ss (a) is issued by a person who is approved by the Presiedremni t, by notice in the Gazette, as an insurer for the puutr p o poses of this Act; and with (b) insures such person, persons or classuetes d of persons as may be specified in the policy iin ib str respect of any liability which may be incurred obr yd him or them in respect of the death of, or bodilye duc injury to, any person caused by or arising out ofp rtoh de use of the vehicle on a road: e be r Provided that, a policy in teyr ma ms of this section shall not be required to cover- k oo (i) liability in b hi srespect of the death arising out of t and in rtt ho f e course of his employment of a person in toh pe a employment of a person insured by the pdo. l Nicy or of bodily injury sustained by such a rvpese erson arising out of and in the course of his re employment; igh ts l r (ii) except in the case of a vehicle in which passengers Al ia. are carried for hire or reward or by reason of or in za n pursuance of a contract of employment, liability in n f T a respect of the death of or bodily injury to persons nt o e being carried in or upon or entering or getting on ern m to or alighting from the vehicle at the time of the ov G occurrence of the event out of which the claims 02 5 arise; or ©2 (iii) any contractual liability. 440 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] Requirements in respect of 6.–(1) In order to comply with the requirements of this Act, a securities security shall- (a) consist of an undertaking by the giver of the security to make good, subject to any conditions specified therein, . and up to an amount approved by the President, any G OA failure by the owner of the vehicle or such other persons of n or classes of persons as may be specified in the securiistsy io duly to discharge any such liability as is requiredp eto rm be covered by a policy of insurance under paragroua tp h (b) of section 5 of this Act which may be incur wreithd by him d or them; and te bu (b) be approved by the President and depsotr i di sited with him. (2) Whenever such a security is approdv oe r d by the President and deposited with him, the President e du cshall give to the owner of the vehicle concerned a certifica ro etpe, hereinafter referred to as “a certificate of security”, in the p r bre scribed form and containing such particulars of any condi tmi aoyns subject to which the security is given as may be prescribbo oekd. (3) References in se tch itsi ons 8, 9 and 11 of this Act to a policy, a certificate of insu f rt roance, an insurer or an insured shall be deemed to inclu dpao e references to a security, a certificate of security, a givde. e rN of a security or a person secured, respectively. ervs Certificate of 7.–(1) A e ts r certificate of insurance shall be issued by the insurer insurance to thl reig hperson by whom a policy of insurance is effected at the Al siaa. me time as the cover note is issued. n za (2) A certificate issued under subsection (1) shall be in n f T a the prescribed form and shall contain such particulars of any nt o e conditions subject to which the policy is issued and of any m ern matters as may be prescribed and different forms and different Gov particulars may be prescribed in relation to different cases or 02 5 circumstances. ©2 Certain 8. A condition in a policy of insurance providing that no conditions in policies of liability shall arise under the policy, or that any liability so insurance of no arising shall cease in the event of some specified thing done or effect omitted to be done after the happening of the event giving rise 441 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] to a claim under the policy, shall, as respects such liabilities as are required to be covered by a policy under section 5 of this Act, be of no effect: Provided that, nothing in this section shall be taken to . render void any provision in a policy requiring the persons G OA insured to repay to the insurer any sums which the latter may n o f have become liable to pay under the policy and which havseiois been applied to the satisfaction of the claims of third parptei rems. ut Production of 9.–(1) A person driving a motor vehicle on a roadit h o shall, on certificate of w Insurance being required by a police officer, give his namete du and address Ord. No. and the name and address of the owner of trtibs he vehicle and 34 of 1957 s. 3 i produce his certificate of insurance, and if d o rh e fails so to do, he commits an offence: ed uc Provided that, if the driver of ap rmo dotor vehicle within five days after the date on which the bper roeduction of his certificate of insurance was so required promdyu a ces the certificate of insurance or policy of insurance at s ouoc kh police station as may have been specified by him at thei s h tbime its production was required, he t shall not be convicrtte od f of an offence under this subsection by reason only of faoi lpu are to produce his certificate of insurance to the police offi N dc. er. (2) Whseerr vee, in any case where, owing to the presence of a mototsr r evehicle on a road, an accident occurs involving persoignhl r al injury to another person, the driver of the vehicle l d A ia.o es not at the time produce his certificate of insurance to anz a police officer, or to some person who, having reasonable Tan f grounds for so doing, has required its production, the t o en driver shall, as soon as possible, and in any case within m ern forty-eight hours of the occurrence of the accident, report ov G the accident at a police station, to an administrative officer, 02 5 or to a police officer, and thereupon produce his certificate ©2 of insurance  and, if he fails so to do, he shall commit an offence: Provided that, a person shall not be convicted of an offence under this subsection by reason only of failure to produce his 442 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] certificate of insurance if, within five days after the occurrence of the accident, he produces the certificate of insurance or policy of insurance at such police station as may be specified by him at the time of accident was reported. . (3) It shall be the duty of the owner of a motor vehicle to OAG give such information as he may be required by or on behalf of n of the Commissioner of Police to give for the purpose io isosf determining whether the vehicle was or was not being d rm preiven in contravention of section 4 of this Act on any oouc tc asion when the driver was required under this section toith w produce d his certificate of insurance, and if the owner faiulteb s to do so he commits an offence. ri dis t (4) The provisions of subsections (2) adn od r (3) shall not apply where a motor vehicle is being drivenc edu by a person to whom the provisions of subsection (1) of seroction 4 of this Act do not apply: e r ep b Provided that, such per s y moan shall give such information as may be required by bao okpolice officer for the purpose of determining whether is t h s uch person is a person to whom subsection (1) of se cotfrt ion 4 of this Act does not apply, and if such person failso tpo a do so, he shall be guilty of an offence. d. N Duty of insurers 10.–(1) Wehrve e s re, after a policy of insurance has been effected, to satisfy judgments judgmetsn r et in respect of any liability as is required to be against persons cove rrigl ehd by a policy under paragraph (b) of section 5 of this insured in respect l A of third Aia.ct (being a liability covered by the terms of the policy) is anz obtained against any person insured by the policy, then, an f T notwithstanding that the insurer may be entitled to avoid t o en or cancel, or may have avoided or cancelled, the policy, the m ern insurer shall, subject to the provisions of this section, pay to v G o the persons entitled to the benefit of the judgment any sum 250 payable thereunder in respect of the liability, including any ©2 amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments. 443 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] (2) A sum shall not be payable by an insurer under subsection (1)- (a) in respect of any judgment, unless before or within fourteen days after the commencement of the . proceedings in which the judgment was given, the OAG insurer had notice of the bringing of the proceedings; n o f (b) in respect of any judgment, so long as execution thereosniois is stayed pending an appeal; or ermp (c) in connection with any liability, if before the haopup t ening of the event which was the cause of the ith w death or d bodily injury giving rise to the liabilbiut tye, the policy was cancelled by mutual consent ordi sb triy virtue of any provision contained therein, and de iot rh er- (i) before the happening o ce rod uf the said event, the certificate of insurancepe was surrendered to the insurer, or the pers boen r to whom the certificate of insurance was is s y muaed, made a statutory declaration stating that thoek certificate of insurance had been lost or destirso bo th yed; (ii) after t f rht oe happening of the said event, but befoor pe a the expiration of a period of fourteen dda. N e ys from the  taking effect of the cancellation ervs of the policy,  the certificate of insurance was re hts surrendered to the insurer, or the person to whom g ll r i the certificate of insurance was issued, made such A ia. a statutory declaration; or za n n (iii) either before or after the happenings of the said f T a o event, but within the said period of fourteen days, nt e the insurer has commenced proceedings under rnme this Act in respect of the failure to surrender the Gov certificate of insurance. 5 20 2 (3) It shall be the duty of a person who makes a statutory © declaration, as provided in subparagraphs (i) and (ii) of paragraph (c) of subsection (2) of this section, to cause such statutory declaration to be delivered to the insurer. 444 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] (4) A sum shall not be payable by an insurer under the subsections (1), (2) and (3) if, in an action commenced before, or within three months after, the commencement of the proceedings in which the judgment was given, he has obtained . a declaration that, apart from any provision contained in the OAG policy, he is entitled to avoid it on the ground that it was obtained of n by the non-disclosure of a material fact, or by a representatio io issn of fact which was false in some material particular, or, if hpee r mhas avoided the policy on that ground, that he was entitledo suo t to do apart from any provision contained in it: with d Provided that, an insurer who has obtbau tiened such a declaration in an action shall not thereby bectroidis me entitled to the benefit of this subsection as respects an d yo r judgment obtained in proceedings commenced before tuhced e commencement of that action, unless before or with ro eipn fourteen days after the commencement of that action, r b ehe has given notice thereof to the person who is the pmlaayintiff in the said proceedings specifying the non-disclosouo k b re or false representation on which he proposes to rely, anthdis any person to whom notice of such action is so given, sh oafrt ll be entitled, if he thinks fit, to be made a party thereto. o p a (5) Whered . N e the amount which an insurer becomes liable under this rv se section to pay in respect of a liability of a person e insurehdts br y a policy exceeds the amount for which he would, apalr rti g l from the provisions of this section, be liable under the piao. Alicy in respect of that liability, he shall be entitled to recover an nz the excess from that person. Ta of (6) In this section, the expression “material” means a fact of en t such a nature as to influence the judgment of a prudent insurer m ern in determining whether he will take the risk, and, if so, at what Gov premium and on what conditions, and the expression “liability 25 20 covered by the terms of the policy”, means a liability which is © covered by the policy or which would be so covered but for the fact that the insurer is entitled to avoid or cancel, or has avoided or cancelled, the policy. 445 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] (7) In this Act references to a certificate of insurance in any provision relating to the surrender, loss or destruction of a certificate of insurance shall, in relation to policies under which more than one certificate of insurance is issued, be . construed as references to all the certificates of insurance, OAG and shall, where any copy has been issued of any certificate of n o f insurance, be construed as including a reference to that copyis.s io erm Penalty for false 11. Where a person, for the purpose of obtaining a potl pu icy of statement and o willful avoidance insurance as required by section 5 of this Act, mak esit hw any false of policy statement, in consequence whereof the policy uitse dliable to be avoided, or wilfully does any act which disentisitrl ibes him to claim under the policy, he commits an offence. or d d ce Duty of persons 12.–(1) A person against whom a rcdlauo im is made in respect against whom claims are of any such liability as is requiree dr e pto be covered by a policy made to give under paragraph (b) of sect b aiyon 5 shall, on demand by or information as to m insurance on behalf of the person mokaking the claim, state whether or not he was insured in r ebsois pect of that liability by any policy having effect for the opf tuh rposes of this Act or would have been t so insured if the p ai rnsurer had not avoided or cancelled the policy, and, i N df. h oe was or would have been so insured, give such particruvee lars with respect to that policy as were specified in the cse rr etsificate of insurance issued in respect thereof under sect ht iroign 7 of this Act. ll . A(2) Where, without reasonable excuse, any person fails to za nciaomply with the provisions of this section, or wilfully makes n Ta any false statement in reply to any such demand as provided in nt of subsection (1), commits an offence. me Dvue rn o ty to surrender 13. Where a certificate of insurance has been issued under 5 Gcertificate of 2 insurance on section 7 of this Act to the person by whom a policy has been 20© cancellation of effected and the policy is cancelled by mutual consent or by policy virtue of any provision in the policy, the person to whom the certificate of insurance was issued shall, within seven days from the taking effect of the cancellation, surrender the certificate 446 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] of insurance to the insurer or, if it has been lost or destroyed, make a statutory declaration to that effect, and if he fails so to do, commits an offence. Procedure on 14. A person who, applies for a licence or the renewal of a G. application for OA f motor vehicle licence in respect of a motor vehicle under the Road Traffic o licence Act shall produce evidence as may be prescribed that either- sio n Ord. No. s 34 of 1957 s. 4 (a) a certificate of insurance to the effect that as from i er mthe Cap. 168 date when the licence comes into operation th t p ouere will be in force the necessary policy of insuranitch w e or the necessary security in relation to the useru toe df the vehicle by the applicant or by other personss tri oibn his order or with his permission; or or d (b) the vehicle is owned by the Guocev dernment or a public corporation. rod ep e r Rights of third 15.–(1) Where under any conyt rba act of insurance a person, in parties against insurers on this section referred to aosk m“the insured”, is insured against bankruptcy of liabilities to third partieiss bw o hich he may incur, then- insured (a) in the event th o fof the insured becoming bankrupt or t making a p a rcomposition or arrangement with his credito.r N o d s; or (b) in tehrve e case of the insured being a company, in the event so rf e sa winding-up order being made, or a resolution for a t rig h voluntary winding up being passed, with respect to the . A ll company, or of a receiver or manager of the company’s nia za business or undertaking being duly appointed, or of Tan possession being taken, by or on behalf of the holders t o f n of any debentures secured by a floating charge, of any rnm e property comprised in or subject to the charge, veo if, either before or after that event, any such liability is 5 G 02 incurred by the insured, his rights against the insurer under ©2 the contract in respect of the liability shall, notwithstanding anything in any law to the contrary, be transferred to and vest in the third party to whom the liability was so incurred. 447 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] (2) Where an order is made under section 120 of Cap. 25 the Bankruptcy Act for the administration of the estate of a deceased debtor according to the law of bankruptcy, then, if any debt provable in bankruptcy is owing by the deceased . in respect of a liability against which he was insured under a OAG contract of insurance as being a liability to a third party, the f n o deceased debtor’s rights against the insurer under the contraiscst io in respect of that liability shall, notwithstanding anythinergmp in the Bankruptcy Act, be transferred to and vest in the poeur t son to whom the debt is owing. with d (3) In so far as any contract of insurance bmu teade after the commencement of this Act in respect odfis trai ny liability of the insured to third parties purports, r d wo hether directly or indirectly, to avoid the contract or tdou cae lter the rights of the parties thereunder upon the happenroing to the insured of any of the events specified in paragre ar ep b ph (a) or paragraph (b) of subsection (1) of this section ay m or upon the making of an order under section 120 of theo ob Bk ankruptcy Act in respect of his estate, the contract sha thl ils be of no effect. (4) Upon a transrtf oe fr under subsection (1) or subsection (2) of this section, t a oh pe insurer shall be under the same liability to the third part . N eyd as he would have been under to the insured, but- (a) wherrvs e the liability of the insurer to the insured exceeds re htsthe liability of the insured to the third party, nothing in ll r ig this section shall affect the rights of the insured against ia. A the insurer in respect of the excess; and an nz (b) where the liability of the insurer to the insured is less of Ta than the liability of the insured to the third party, t en nothing in this section shall affect the rights of the third ern m party against the insured in respect of the balance. ov G (5) For the purposes of this section, the expression “liabilities 5 20 2 to third parties”, in relation to a person insured under any © contract of insurance, shall not include any liability of that person in the capacity of insurer under some other contract of insurance. 448 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] (6) This section shall not apply where a company is wound up voluntarily merely for the purposes of reconstruction or of amalgamation with another company. . Avoidance of 16. Where a certificate of insurance has been issued under G restrictions on A scope of policies section 7 of this Act to the person by whom a policy has been of O covering third effected, so much of the policy as purports to restrict thseio n party risks s insurance of the persons insured thereby by reference to aenrmy iof the following matters- p ou t (a) the age or physical or mental condition woifth persons driving the vehicle; ute d (b) the condition of the vehicle; ib ist r (c) the number of persons that the veh oirc dle carries; (d) the weight or physical characteriesduc tics of the goods that the vehicle carries; pro d (e) the times at which or the baer reeas within which the vehicle is used; y ma (f) the horse-power oroo v k alue of the vehicle; (g) the carrying on tsh bhi e vehicle of any particular apparatus; f tor rt o (h) the carryoi np ag on the vehicle of any particular means of identifi N d.c ation other than any means of identification e Cap. 168 reqeurvs ired to be carried by or under the Road Traffic Act, shall, ats rres espects such liabilities as are required to be covered by a gh l rpi olicy under paragraph (b) of section 5 of this Act, be of l nia.o A effect: za n Provided that, nothing in this section shall require an an f T insurer to pay any sum in respect of the liability of any person nt o e otherwise than in or towards the discharge of that liability, and rnme any sum paid by an insurer in or towards the discharge of any ov G liability of any person which is covered by the policy by virtue 02 5 only of this section shall be recoverable by the insurer from ©2 that person. 449 THE MOTOR VEHICLES INSURANCE ACT [CAP. 169 R.E. 2023] Provision with 17. Where there is in existence in respect of a motor vehicle- regard to visitors (a) a valid and subsisting international certificate issued in pursuance of the International Convention relative to Motor Traffic, 1926; or . (b) a valid and subsisting licence to use such motor vehicle AG O which has been granted under any law in force in n o f Malawi, Kenya, Tanzania Zanzibar, Uganda or Zambiisas i,o a person driving such motor vehicle shall not be requirpee rdm to produce a certificate of insurance, but it shall be theo ud t uty of such person to give such information as he may beit h w required d by or on behalf of the Commissioner of Policeb ut toe give for the purpose of determining whether the vehicl ri dies t was or was not being driven in contravention of section 4 o rof this Act. ce d u Power to make 18. The President may make ruprloe ds prescribing anything rules required by this Act to be presce rr e b ibed, and generally for the better carrying out of the pro y mvaisions of this Act. ok Penalty for 19. A person who commis bi ots an offence against this Act or any offences person who contrav th oefnes or fails to comply with any of the t provisions of thi sp aA r ct or of any rules made thereunder, for which no othderN po. enalty is specifically provided, shall be liable on summaerrvy e conviction before a district court to a fine not exceedi es sn rg fifty pounds or its equivalent in Tanzania shillings or to ri i hmtg prisonment for a term not exceeding three months or to ll ia. Aboth. za n an of T en t rnme ov 25 G 0 ©2 450