CHAPTER 394 THE INSURANCE ACT PRINCIPAL LEGISLATION . Arrangement of Sections AG f O n o Section Title sio mis part i r t p e PRELIMINARY PROVISIONS ou ith 1. Short title. d w 2. Application. uteib 3. Interpretation. ist r or d part ii ce d ADMINSTRATIVE PROVISIOrNodS u p 4. Administration of Act. re 5. Establishment of Authority. y b e a 6. Functions of Authority. ok m 7. Appointment of Commissioner. bo is 8. Appointment of Deputy Commissifo thner. 9. Disqualification. rt oa 10. Other staff. No p 11. Functions and duties ofe Cd .o mmissioner. 12. Delegation of powersse o rvf Commissioner. 13. Establishment ofts B reoard. 14. Functions of l r Bigohard. l ia. A n part iii CaAnP zaITAL AND OTHER REQUIREMENTS OF INSURERS OTHER T of THAN ASSOCIATIONS OF UNDERWRITERS t 1m5e. n Application of Part III. rn ve 16. Insurer to be resident company in Tanzania. G o 17. General and long term insurance. 250 18. Separation of insurance and brokerage. ©2 19. Capital requirement. 20. Margin of solvency. 21. Registration of insurer. 227 THE INSURANCE ACT [CAP. 394 R.E. 2023] 22. Exclusion of friendly societies. 23. Application for registration. 24. Registration requirements. 25. Obligations of directors and senior officers. 26. Restriction on insurers whose officers are deemed unsuitable. G. 27. Requirement for directors. OA f 28. Grant of registration. n oo 29. Cancellation of registration. i iss 30. Prohibition after registration. ermp 31. Retentions and reinsurances. t ou 32. Amalgamation, sale and transfer. with 33. Transactions between related parties. d ute 34. Records and preservation of records. tribs 35. Amendment of accounts etc.. i r d 36. Audit of accounts of insurers. o ed 37. Commissioner’s powers in relation to commissions andd u c deposit of funds and management expenses. ro ep 38. Valuation of assets and liabilities. e r b 39. Change of financial year. may 40. Annual and quarterly returns. ok o 41. Publication of audit and financial staties m b ents. 42. Establishment of Audit Committeef. th o 43. Publication of authorised capipta rlt. 44. Powers, restriction and ins o tNru ction on insurers. . 45. Investment requiremenvtesd. 46. Trusteeship of assets.er 47. Maintenance of Rs er es ht gister. 48. Preferred cre g ll dr iitors of insurer. 49. Establishm. Aa ent of Investment Committee. i 50. Formzualnation of policy. 51. C Tlaas nsification. ofnt rnm e part iv ve ASSOCIATION OF UNDERWRITERS REGISTERED AS INSURERS o 5 G 52. Application of Part IV. 2 20 53. Commissioner to determine conditions for registration. © 54. Association of underwriters liable to premium tax. 55. Association of underwriter to deposit sums or securities. 56. Premium received to be held in trust. 57. Audit of accounts of association of underwriters. 228 THE INSURANCE ACT [CAP. 394 R.E. 2023] part v THIRD PARTY RIGHTS AGAINST INSURERS 58. Third party rights against insurers on bankruptcy. 59. Duty to give necessary information to third parties. 60. Settlement between insurers and bankrupt person of no effect. AG. f O part vi n oo REGISTRATION OF INSURANCE BROKERS, AGENTS siis AND AGENTS FOR BROKERS, ETC. erm t p 61. Insurance brokers, agents and agents for brokers to be registered. ouh 62. Agents to act for one principal only. it ted w 63. Insurer’s and broker’s responsibilities for agents. bu 64. Registration of agents. i ist r 65. Broker’s application for registration. or d 66. Restriction on broker’s officers. edc 67. Registration requirements of insurance brokers. duro 68. Grant or refusal of broker’s application. re p 69. Broker’s capital requirements. y b e 70. Broker’s responsibility and insurance requikr emma ents. 71. Broker’s records and right of access. bo o 72. Payment of premiums and commis s stiho i n. 73. Broker’s accounts. f rt o 74. Cancellation of registration. a o p 75. Display of certificate of rde.g Nistration. 76. Financial year of brok e eervr. 77. Broker’s amalgam s arteion, sale and transfer. 78. Broker’s annualh atsnd quarterly returns. ll r ig . A nia part vii zan MANDATORY REINSURANCE CESSIONS a 79. oRf e Tinsurance with international organisation. 80e. n t Acceptance or decline of business by ZEP-RE or Africa-Re. m ern81. Appeal by ceding institution. Gov 82. Liability to cease on refusal. 25 0 83. Failure to comply. ©2 84. National Reinsurance Corporation. 229 THE INSURANCE ACT [CAP. 394 R.E. 2023] part viii SPECIAL PROVISIONS RELATING TO LONG TERM (LIFE) AND OTHER POLICIES 85. Life insurance tables or statements. 86. Insurance interest for life assurance. G. 87. Amalgamation and transfer of long term business. OA f 88. Transfer powers of Commissioner for long term business. o ion 89. Periodic actuarial investigation. iss 90. Establishment of statutory life insurance fund. rm pe 91. Application of assets of insurer with long term business. ou t h 92. Restriction on transaction with connected person. t w i 93. Reinsurance contract of long term insurance. ute d 94. Allocation to policy holders. rib ist 95. Investment unit policies. or d 96. Life insurance of minors. ce d 97. Value of certain assets. u rod 98. Life policy effected by married persons. re p 99. Life policy on own life and protection affordedy d bu ering life. 100. Life policy on own life and protection afford a med on death. 101. Protection afforded in respect of life poliocob yk insuring spouse or children. 102. Protection afforded in respect of life hpist o licy insuring spouse. 103. Selection of life policies in respect to fo f which protection is afforded. r 104. Partial realisation and partial pcaonversion of life policies. 105. Provisions in case of prem o . iNum life policy ceded or trust policy cannot be maintained. d rve 106. Life policy ceded orre sp eremium paid with intent to benefit someone at expense of credhittso r. 107. Power to pay riigll nto court. 108. No reducat. iAon in respect of other life policies. 109. Proofz ao nfi age. 110. Agaen T incorrectly stated. 111. t oS fuicide. n 11m2e. Military service. ve1rn13. Lost or destroyed life policy. o 5 G 114. Life policy may include subsidiary benefits. 2 20 115. Discrimination between life policies etc., prohibited. © 116. Non-forfeiture of life policies in certain cases on non-payment of premiums. 117. Paid-up policies. 118. Surrender of policies. 119. Cancellation of life policy within limited penalty. 120. Publication of bonus rates and unit values. 121. Advertisement and projected benefits. 230 THE INSURANCE ACT [CAP. 394 R.E. 2023] part ix ESTABLISHMENT OF OMBUDSMAN SERVICE AND TRIBUNAL (a) Establishment of Ombudsman Service 122. Establishment of Ombudsman Service. G. 123. Complaints to be handled by Ombudsman. A f O 124. Powers and functions of Ombudsman. o on 125. Funds of Ombudsman Service. siis rm (b) Establishment of Insurance Appeals Tribunal pe ut 126. Establishment of Tribunal. tho d w i part x ibu te FINANCIAL PROVISIONS RELATING TO THE AUTdHisO tr RITY r 127. Funds of Authority. ed o 128. Annual estimates. ucd 129. Books of accounts. ro e r ep b part xi ay GENERAL PROVk mo ISIONS o 130. Restriction on insurance having no ihnis ubrance interest. 131. Time limit for payment of claim. of t t 132. Fatal Accident. ar p 133. Insurance held by TanzaniaNno. insurer. 134. Mandatory insurance. edrv 135. Repealed. sere 136. Unlimited indehmtsn ities. 137. Commissionl roi g l nly to brokers and agents. 138. Repealeda.. A i 139. Daysz oafn grace period. 140. Ifn Ts aunrance broker’s code of conduct. 141. nt oExemption. 1n4m2 e. Extension of time. r ov e143. Routine inspection. 5 G 144. Production of documents and information. 2 20 145. Inspection of balance sheet by policy-holder. © 146. Restriction on use of words. 147. No advertisement before registration. 148. Service of process. 149. Enforcement of rights of policy-holders. 231 THE INSURANCE ACT [CAP. 394 R.E. 2023] 150. Commissioner’s right of inspection of documents. 151. Commission of inquiry. 152. Copies where documents produced to Commissioner. 153. Inspection of returns to Commissioner. 154. Insolvency and winding up. G. 155. Actuarial valuation of general insurers. A f O 156. Continuation of business of insurer in liquidation. o on 157. Secondary company. i iss 158. False document. pe rm 159. Fees. ou t 160. Failure to remit premiums by employers. ith d wte part xii trib u PROVISIONS RELATED TO OFFENCES is or d 161. Offences punishable by Commissioner. d ce 162. Carrying on business without registration. rod u 163. Power to compound offences. p re 164. Offences punishable by court. y b e 165. Power to prosecute. m a 166. Measures over insurers and brokers. ok bo 167. General penalty. thi s 168. Regulations and rules of court. f art o 169. Repeal and savings. o p d. N erv e SCHEDULE es hts r ig All r nia . za Tan of nt rnm e ov e 5 G2 ©20 232 CHAPTER 394 THE INSURANCE ACT . An Act to establish the Tanzania Insurance Regulatory Authority, to provide AG for the functions and powers of the Tanzania Insurance Regulatory f O n o Authority in regulating and supervising insurance business and fosriois related matters. ermp [12th Moua ty , 2009] [GN. No .w 2 it6h6 of 2009] Acts Nos. GN. No. ed 10 of 2009 35 0f 2001 t bu 5 of 2012 tris 7 of 2017 dir 4 of 2021 d o 2 of 2022 ce 5 of 2022 duo 13 of 2023 r re p y b e a ok m o his b f t o PART I PR Epa rt o LIMINARY PROVISIONS d. N ve Short title 1. This Acste rmay be cited as the Insurance Act. re hts Application 2.–(l 1rig) This Act shall apply to insurance business in Mainland Ta l a. Anzania as well as in Tanzania Zanzibar. an i z (2) This Act shall apply to every insurer, broker or agent or n f T a every class of insurance business other than an insurer, broker nt o e or agent or class of insurance business that is exempted from rnm application of the provisions of this Act by an order made by ve Go the Minister under section 141. 5 02 (3) The provisions of this Act shall not extend or apply to- ©2 (a) subject to the provisions of section 22, a person registered in terms of any law relating to benefit societies; 233 THE INSURANCE ACT [CAP. 394 R.E. 2023] (b) a person or class of persons declared by the Minister by regulation to be exempt from the provisions of this Act; (c) a class of insurance business carried on by the Government of Tanzania or the Revolutionary . Government of Zanzibar; OAG (d) the Government of Tanzania or the Revolutionary f n o Government of Zanzibar in respect of the collectiosniois and payment of insurance premiums governed bype rPmart VIII of this Act; or ut o (e) the Deposit Insurance Fund established in awcithcordance d Cap. 342 with the provisions of Part VII of the te bu Banking and Financial Institutions Act. i dis tr or Interpretation 3. In this Act, unless the context require d uc es otherwise- “actuary” means a person who ipsr oa d member or fellow of an institute, facility, societybe orer association of actuaries approved by the Commimssayi oner for the purposes of this Act; k oo “adopted child” mean b hsis a child adopted in accordance with t the provisions ortf o t f he law relating to adoption of children and, referencoe p ain this Act to adoption shall be construed accordingl N ed y. ; “agent fors ebr vroker” means a person who transacts insurance busi re tsn ess on behalf of a registered insurance broker; “age h l rnigt for insurer” means a person which transacts insurance A l ia. business on behalf of a registered insurer and shall have za n the same meaning as “insurance agent”; n f T a “approved securities” means securities issued by the t o en Government and the Bank of Tanzania and any other m ern securities or investments which the Commissioner may v G o approve; 02 5 “associate” in relation to an applicant for registration as an ©2 insurer or broker, it includes- (a) the spouse or minor son or daughter of that person; (b) any company of which that person is a director; 234 THE INSURANCE ACT [CAP. 394 R.E. 2023] (c) any person who is an employee or partner of that person; or (d) if that person is a company where any- (i) director of that company; . (ii) subsidiary of that company; or OAG (iii) director or employee of that subsidiary; of n “association of underwriters” means the association isosf io underwriters registered under this Act; ermp “Authority” means the Tanzania Insurance Regut o latory Authority, established under section 5; ith d w Cap. 197 “Bank of Tanzania” means the bank establisbhue ted under the Bank of Tanzania Act; tri dis “bankruptcy” and “insolvency” has thde o rm eaning assigned Cap. 25 to them under the Bankruptcy Aucced t or the relevant law applicable in Tanzania Zanzibaprre ;o “Board” means the National r Ibensurance Board established under section 13(1); may “broker” means the “insubor oaknce broker” described in this Act; “Chairman” in relationhi s t t o an association of persons, includes the individual prt roe f siding over the Board of Directors or other governoi np ag body of the association; “child” mea . ends Na person under the age of eighteen years irrespescetr vive of whether or not that child is born out of e wedhtlso r ck, a step child or a child adopted in accordance w g ll rii th any law, whether within or outside Tanzania; “iaC. Aommissioner” means the Commissioner of Insurance an nz appointed pursuant to the provisions of section 7; Cap. 212 f T a o “Companies Act” includes the Companies Decree of en t Zanzibar; m ern “contingent obligation dependent on a human life” means- ov G (a) an obligation to pay a particular person a certain sum 5 20 2 of money or to provide for a particular person certain © other benefits- (i) on the occurrence of the death of a particular person or the birth of a child to a particular person at any time or within a specified period; or 235 THE INSURANCE ACT [CAP. 394 R.E. 2023] (ii) in the event of a particular person continuing to live throughout a specified period; or (b) an obligation assumed- (i) until the death of a particular person; or . (ii) during a specified period or until the occurrence OAG of the death of a particular person before the n o f expiration of that period; siois “Controller” in relation to an applicant for registrationp ae rsm an insurer or broker, means- ou t (a) a managing director or Chief Executive Offiicth w er of the d applicant or of a body corporate of whichuteb the applicant is a subsidiary; or ri dis t (b) a person in accordance with wohr d ose directions or instructions the directors of th c due eapplicant or of a body corporate of which the apep rloicant is a subsidiary are accustomed to act; or r be (c) a person who either ay m alone or with an associate is entitled to exercis ok boe, or control the exercise of, fifteen percent of, or tho isn e third or more of the votes at any general mee ionfrt g, or of any body corporate of which the applicant ipsao a subsidiary; “corporate ag.e Ned nt” means a person other than a natural persons ewr vhich include firm or Company formed under the e Cap. 212 Coms prht anies Act and Banking and Financial Institutions as Cap. 342 dll eri gfined under the Banking and Financial Institutions Act; “c. oAia urt” means any court having jurisdiction under this Act; an nz “days of grace” means the period defined by section 139; f T a o “dependant” in relation to any person includes his surviving t en spouse and any of his parents, children and grandchildren; rnme “deposit” means a deposit of money or anything having a Gov monetary value which by virtue of the regulations made 25 20 under this Act may be accepted as a deposit; © “deposit administration policies” means a contract whereof- (a) an insurer maintains a fund to which- (i) is credited all amounts paid by the insured to the fund; 236 THE INSURANCE ACT [CAP. 394 R.E. 2023] (ii) is debited all amounts withdrawn from the fund to provide benefits in terms of the rules of the fund and any administrative and other expenses agreed upon between the insured and the insurer; and . (iii) any investment income and capital profits or OAG losses when agreed upon between the insured and of n the insurer as being for the account of the fun i isds; o and ermp (b) the liability of the insurer to the insured, at anouy t given time, as limited to the amount standing to thieth w credit of d the fund; uteb “director” includes an individual occupyindigs t rithe position of director or alternate director of an asds orciation or persons or a member or alternate memdbue cer of a committee of management or of any otherp roe governing body of an association of persons, by bew rhatever name he may be called; ay “financial institution” moek m bo ans an entity engaged in the business of bankingi sb th ut limited as to size, location served or permitted as p f rt orescribed by the bank or required by the terms and coon pd aition of its licence; “financial year. ”Ned in relation to an insurer, means each period of twelsveer v months at the end of which the balance of the e accosu rht nts is struck, and includes any lesser or greater p reigll riods which the Commissioner shall approve; “f.r Aia iendly society” means an association of persons an nz established with no share capital for the purpose of aiming f T a o its members or their dependants, where that association t en does not employ any person whose main occupation ern m is the canvassing of other persons to become members ov G of the association or the collecting of contributions or 25 20 subscriptions from its members towards the funds of the © association; “funeral policy” means a policy whereby the insurer assumes, in return for premium or the promise of a premium, an obligation to provide, on the death of any person, benefits 237 THE INSURANCE ACT [CAP. 394 R.E. 2023] which consist principally of provision for the burial and funeral of that person or the grant to another person or some non-monetary benefit, whether or not the policy provides for- . (a) the payment at the option of the insurer or any other OAG person of a sum of money instead of provision of a of n funeral or the grant of non-monetary benefit; or io iss (b) the payment of a sum of money in addition toe rmp the provision of a funeral or the grant of somuet o non- monetary benefit; ith d w “general business” has the meaning assignedut eb to it under section 51; tri dis “gross profits” means the chargeable inco d om r e of the insurer as Cap. 332 ascertained under Part II of the Induc coe me Tax Act; “infant or infant child” means a reorson who, by reason of age, is under a legal disabilitye ;r ep b “insurance agent” means a y mp aerson who solicits applications for insurance, collectbso omk oneys by way of premium and acting in accordanthcis e with agency agreement and may find the registere f art do insurer for whom he acts in the issue of insurance coov per and the term “agent” shall be construed accordingldy. N e ; “insurancsee r v broker” means a person, who acting with e com r htsp lete freedom as to his choice of undertaking and fllo rir g commission or other compensation and not being A ia. an agent of the insurer, bring together, with a view to za n n the insurance or reinsurance of risks, persons seeking a of T insurance or reinsurance undertaking, carry out work nt e preparatory to the conclusion of contracts of insurance ern m or reinsurance, and, where appropriate, assists in the ov G administration and performance of the contracts, in 5 20 2 particular in the event of a claim; © “insurance business” means the business of assuming the obligation of an insurer in any class of insurance whether defined in this section or not, which is not declared to be exempt from the provisions of this Act in terms of 238 THE INSURANCE ACT [CAP. 394 R.E. 2023] section 2 and includes assurance and reinsurance and reassurance; “insurance registrant” means a person registered to conduct insurance business under this Act; . “insurer” means a person carrying on insurance business OAG other than a broker or agent, and includes an association n o f of underwriters which is not exempt from the provisioinsss io of this Act in term of section 2; ermp “life insurance business” means the business of asosuu t ming the obligation of an insurer classified under se ith cwtion 51 as d transacting long term business; bu te “life insurance fund” means the fund edsist tariblished under section 90 to which the receipts of adno r insurer in respect of his life insurance business are c c duareried; “life policy” means a contract of eipn rosurance made or agreed to be made by an insurer c r bleassified under section 51 as transacting long term bu msiany ess; “long term business” habso otkhe meaning assigned to it under section 51; his t “loss adjuster” m f rt eoans a natural person who possess knowledge an pdao skill to assess the accident and adjust compensati. oNed n to the injured persons; “loss assessesro v rs” means a natural person who assess accident e on btse rh half of the insurer; “mall nri gagement expenses” means expenses incurred in the . Aia administration of an insurer which are not commission an nz payable and, in the case of general insurance business, Ta of are not incurred in claims paid, claims outstanding, en t expenses for settling claims and expenses for settling ern m claims outstanding; v G o “manager” in relation to an applicant for registration as an 25 20 insurer or broker includes an employee of the applicant © other than a controller, who under the immediate authority of a director or chief executive of the applicant exercises managerial functions or is responsible for maintaining accounts or other records of the applicant 239 THE INSURANCE ACT [CAP. 394 R.E. 2023] not exclusively related to business conducted from a place of business outside Tanzania; “marriage” shall have the same meaning assigned to it by the Cap. 29 Law of Marriage Act or any other law; . “member of the insurance industry” includes an insurer, G OA broker, insurance agent of a broker, insurance surveyor, n o f risk manager, loss assessor, loss adjuster and claimisss io settlement agent, whether registered under this Acertmp or not; ut o “Minister” means the Minister responsible for fin th d w aince; “minor” means a person who, by reason of hi t bsu a ege, is under the legal disability; ist ri d “owner” in relation to a policy, means ad po re rson who has the legal title to the policy; ce du “Ombudsman” means an Insuranc ro epe Ombudsman referred to under Part IX of the Act; e r b “policy” includes every w mr aiyting whereby a contract of insurance is made or ok baogreed to be made; “principal officer” me is thans a person responsible for the daily management ofr f t othe principal office in Tanzania of the insurer or bro a o pker; “reinsurancee”d . mN eans the effecting of insurance business as betweesner vInsurers; e “signifitsc rh ant owner” means a person who owns ten percent or ml ril og re of the voting shares of the insurer; “ias. t Aock insurance company” means an insurance company an nz with permanent share capital owned and controlled by f T a o shareholders and includes statutory corporation carrying nt e on insurance business; rnme “Tanzania insurer” means an insurance company Gov incorporated and registered to transact insurance 5 20 2 business in Tanzania; © “the insured” means a person effecting a contract of insurance with an insurer; “Tribunal” means the Insurance Appeals Tribunal established under section 126; 240 THE INSURANCE ACT [CAP. 394 R.E. 2023] “trustee” in relation to an estate in insolvency, includes an assignee or as the case may be, a trustee in a deed of arrangement of the person having the conduct of an order of composition; . “underwriter” includes any person named in a policy or AG O other contract of insurance as liable to pay or contribute f n o towards the payment of the sum secured by the policy osriois contract; and rm pe “underwriter’s liabilities” in relation to a membeoru t of an association of underwriters, means the liabiliwtiit ehs of the d insurance business of the member calculatedbu i tne accordance with formulae fixed by the responsible tri dbisody vested with the administration of the relevant insdu or r ance law. ce du PART II ro re p ADMINSTRATIVy bE e PROVISIONS k m a Administration 4.–(1) The Minister sh baol ol be responsible for formulation, of Act development and imfp s thl iementation of the national policy on insurance in the Uanrti oted Republic. (2) For the pNuo rppose of subsection (1) and generally under this Act, the dM.ve inister shall establish and maintain a system of closer esc eor nsultation and cooperation with the Minister respontssi h ble for finance in the Revolutionary Government of Zanl zri g Al ibar with a view to ensuring the evolution of an effective naian . d sound administration of insurance business in the United za an Republic. T t o f Establisehnment of 5.–(1) There is established a body to be known as the Tanzania Autrhe nomrity Insurance Regulatory Authority. ov G (2) Subject to the general supervision of the Minister, 02 5 2 the Authority shall be charged with the responsibility of © coordinating policy and other matters relating to insurance in the United Republic. 241 THE INSURANCE ACT [CAP. 394 R.E. 2023] (3) The Authority shall be a body corporate with perpetual succession and a common seal and shall, in its corporate name, be- (a) capable of sueing and being sued; . (b) capable of borrowing money, acquiring and disposing AG O of property; and n o f (c) capable of doing all other things which a body corporaistse io may lawfully do. erm t p ou Functions of 6.–(1) The functions and duties of the Authori ith twy shall be Authority ed Act No. to promote and maintain an efficient, fair, sauft and stable 13 of 2023 s. 54 insurance market for the benefit and protietcribs tion of policy- holders, health insurance scheme member osr ,d employers, health service providers and health insurance ed u cschemes. (2) Without prejudice to the gepnroe drality of subsection (1), the Authority shall- e be r (a) coordinate and implemaeym n t policies on insurance matters; (b) regulate and coordooi kn ate activities of insurers, brokers and agents; s b thi (c) specify the f rt ocode of conduct for members of the insuranceo pi andustry; (d) effect ds.u Npervision and monitoring of insurers, brokers ansde ra vegents; (e) re tsf ormulate standards in the conduct of the business of ighl r insurance which shall be observed by insurers, brokers A l ia. and agents; za n (f) ensure proper observance of the code of ethics and n f T a practice by insurers, brokers and agents; t o en (g) perform any other function as may be necessary for the ern m purpose of this Act; ov G (h) implement a salary structure for all employees; 02 5 (i) determine other retirement allowances or benefits ©2 to employees including the establishment of superannuation fund or medical benefits for employees; (j) protect the interest of policy-holder, health insurance scheme members, employers, health service providers and health insurance schemes; 242 THE INSURANCE ACT [CAP. 394 R.E. 2023] (k) specify requisite qualifications for members of the insurance industry; (l) oversee and ensure quality assurance of the primary benefit package and contribution rates in collaboration . with the Ministry responsible for health matters; OAG (m) supervise and regulate funds, insurance companies and n o f health care providers; siois (n) supervise the compliance of laws related with insurpae rnmce; (o) prescribe levies on premiums and commissoiuo t ns to ensure adequate funding for the Authority; i wanthd d (p) recommend a detailed revenue and expe t bnude iture budget of the Authority before the commencdeism tri ent of the fiscal year and cause it to be submitted d o rto the Minister for approval. e du c ro ep Appointment of 7.–(1) The President shall appobien rt a person from either part Commissioner of the United Republic who y ma has adequate knowledge and experience in insurance k oiondustry to be a Commissioner of Insurance. is b th (2) The Commissoiof rt ner shall be the Chief Executive Officer of the Authority.o p a (3) The Cod.m Nmissioner shall hold office for a term of five years and smer vaey be reappointed once for a further term of five years. s r e t rig h Appointment 8.–A(ll. 1) The President shall appoint a person who has adequate of Deputy n Commissioner za kianowledge and experience in insurance industry, to be a Tan Deputy Commissioner of Insurance. nt of (2) In appointing a Deputy Commissioner of Insurance, the e rnm President shall appoint a person who hails from another part of veo the United Republic different from which the Commissioner 25 G 0 hails. ©2 (3) Without prejudice to the provisions of subsection (2), the Deputy Commissioner of Insurance shall, subject to any general or specific directions by the Commissioner, perform the functions and discharge duties of the Commissioner in Tanzania Zanzibar. 243 THE INSURANCE ACT [CAP. 394 R.E. 2023] Disqualification 9.–(1) A person shall be disqualified for appointment as the Commissioner of Insurance or Deputy Commissioner or if already appointed, shall become disqualified as such where- (a) his spouse or dependant child is or becomes a director . or owns more than five percent of the issued shares, OAG whether directly or indirectly, of an insurer, a broker or n o f an agent registered within the United Republic; or sios (b) he- rm i pe (i) is adjudged bankrupt; t ou (ii) has applied for the benefit of any law fowrit hthe relief d of bankrupt or insolvent debtors; obru te (iii) compounds with his credito i dris t r or makes an assignment of his remunerati ord n for their benefit. (2) Notwithstanding subsection (1),c edu an act or omission by the Commissioner or Deputy Ceopm ro missioner of Insurance done or omitted to be done in g obeo rd faith for the purpose of or in pursuance of this Act sha lml anyot be invalid by reason only of any defect in his appointm k bo oent. thi s Other staff 10. The Board shallr f ta oppoint any other staff as may be necessary for effective perfo prao mance of the functions of the Authority. N d. Functions 11. Subjecetr vt eo the provisions of this Act, the functions and and duties of Commissioner duties osfr ets he Commissioner shall include- (a) ht rig registration and superintendence of the conduct of ll . A insurers, insurance brokers and agents; an ia z (b) formulation and enforcement of standards in the an T conduct of the business of insurance; of nt (c) recommending to the Minister the making of me rn regulations for the carrying out of Government policies ov e relating to insurance; 5 G 02 (d) affording guidance to insurers to- ©2 (i) the standardisation of contracts of compulsory insurance; (ii) the deletion or amendment of obscure or ambiguous terms in contracts of insurance; 244 THE INSURANCE ACT [CAP. 394 R.E. 2023] (iii) the deletion or amendment of items and conditions in contracts of insurance which are unfair or oppressive to policy-holders; and (iv) the simplification or clarification of terms and . conditions in contracts of insurance; and OAG (e) performance of such other functions which are assigned of n to the Commissioner by this Act or any other dutiisess io which the Minister may, by regulations, prescribep.e rm ou t Delegation 12.–(1) The Commissioner may, in relation to anyw it h of powers of d particular Commissioner function or matter or class of functions or matteutres, in writing, delegate any of his powers or functions so tihstra ibt the delegated powers and functions may be exercised bory d the delegate and a delegation shall not prevent the exuerecdc ise of any power or function by the Commissioner. pro d (2) Notwithstanding subsecbtei oren (1), the Commissioner may revoke the delegation of y m any of his powers or functions. oo k Establishment of 13.–(1) There is estabilsi bshed a Board to be known as the Board Act No. National Insurance Bfo th t o ard. 5 of 2012 s. 152 (2) The Board spha rall consist of seven members, the Chairman of which shall. Nb o d e appointed by the President and not more than other esrvi ex members appointed by the Minister, at least two of whom res sshall hail from either part of the United Republic. (3 ri)g hSt ix members shall be appointed from amongst persons of ll a. Aability, integrity and standing who have knowledge and anz ei xperience in life insurance, general insurance, actuarial n Ta science, finance, economics, law, accountancy or administration t o f n and who, in the opinion of the Minister, would be useful and rnm e beneficial to the Authority. e ov (4) In appointing members of the Board hailing from G 02 5 Tanzania Zanzibar, the Minster shall make prior consultation ©2 with the Minister of the Revolutionary Government of Zanzibar responsible for finance. (5) For the purpose of subsection (3), a person who may be appointed as a member of the Board shall not be a director, an employee, a shareholder or an agent of any insurance registrant. 245 THE INSURANCE ACT [CAP. 394 R.E. 2023] (6) The Commissioner shall be the Secretary to the Board. (7) The provisions of the First Schedule shall have effect as to the tenure of office of members of the Board, termination of their appointment, proceedings of the Board and other matters . relating to the Board. AG of O Functions of 14. The functions of the Board shall be to- sio n Board s (a) provide guidance, and advice to the Authority geneerrma illy in the regulation and supervision of insurance but pou siness in the country; th w i (b) consider and advise the Minister in reultea dtion to any application for exemption made un r isdt e ibr section 141; and d or (c) ensure that the Authority undeurceta dkes its activities in a competent manner. rod re p be PA y mRaT III CAPITAL AND bOooT k HER REQUIREMENTS OF INSf Uh ist RERS OTHER THAN ASSOCIAartT oIONS OF UNDERWRITERS No p Application of 15. This Pa . verdt shall only apply to insurers who are not Part III associatio er esns of underwriters. s rht Insurer to be 16.–ll r(i g1) An insurer shall not be registered as an insurer within resident company tah. A in Tanzania i e United Republic unless it is a body corporate incorporated n Cap. 212 a nz under the Companies Act or any other law in the United Ta of Republic and is deemed to be resident in Tanzania and at t en least one third of the controlling interest, whether in terms of m ern shares, paid up capital or voting rights are held by citizens of Gov Tanzania and at least one third of the members of the Board of 25 20 that company are citizens of Tanzania. © (2) For the purpose of this section “citizens of Tanzania” includes a body corporate registered in the United Republic in which a citizen of Tanzania or the Government holds the majority of the shares. 246 THE INSURANCE ACT [CAP. 394 R.E. 2023] General and long 17. An individual insurer may transact general insurance term insurance business or a long term insurance business but not both. Separation of 18.–(1) A Tanzanian insurer shall not register the transfer of insurance and . brokerage more than five percent of his issued shares to- AG (a) a person who owns or controls more than ten percent of O of the issued up shares of any Tanzanian registeresdio n s broker; or i erm (b) a body of persons directly or indirectly owoun t ped or controlled by a Tanzanian registered insura ncithw e broker. (2) A Tanzanian registered insurance brouktee dr shall not register the transfer of more than five percenistt ro ibf the issued up shares to- or d (a) a person who owns or controlsu d cme ore than ten percent of the issued shares of any Tparno dzanian insurer; or (b) a body of persons, direec b trely or indirectly owned or controlled by a Tanzamnaiya n insurer. (3) A person, company kr oo body of persons who have a legal or equitable interest inh ios rb who owns, controls, or is employed t by- of rt (a) a Tanzanoi apn a registered insurance broker; or (b) a Tan N dz.a nian insurer, shall not be employed as the dir rve seector, manager, controller, or principal officer of a T raets nzanian insurer or registered broker respectively ighl r or enter into any management agreement with that Al ia. person, company or body of persons. n za (4) The Commissioner may, where he deems that it is in the n f T a interest of the insurance industry and the public in general and nt o e by notice published in the Gazette, grant specific exemption to ern m any person, company or body of persons from application of Gov the provisions of this section under any terms and conditions. 5 20 2 © Capital 19.–(1) The Minister shall, upon recommendation by the requirement Commissioner and by notice published in the Gazette, prescribe the minimum paid up share capital to be maintained by a registered insurer. 247 THE INSURANCE ACT [CAP. 394 R.E. 2023] (2) For the purpose of subsection (1), the Minister may prescribe different amounts in respect of insurers transacting general business and insurers transacting long term business. (3) The Minister may prescribe the form in which paid-up . share capital may be maintained by an insurer. AG O of Margin of 20.–(1) An insurer shall not carry on business as an insursesri o n solvency unless he maintains in Tanzania at all times, during whicehrm ihe carries on insurance business, a margin of solvency of unt o opt less than the amount prescribed by the Minister. ith w (2) For the purpose of subsection (1), the uMte dinister may prescribe the method of calculating the assetiss tra ibnd liabilities of an insurer. or d (3) An insurer who contravenes sub ed uscection (1) commits an offence and shall, in addition to anyp rpo denalty prescribed by this Act, be liable for cancellation of li creence. y b e a Registration of 21.–(1) Subject to the provoisk i mons of this Part, a person resident insurer in Tanzania shall not bo is commence or carry on insurance business, unless he iso fr teh gistered as an insurer under this Act. t (2) The Minis ptae rr may exempt, in part or in whole, any insurer from tdh o . Ne application of the provisions of this Act where the whole oerfv ethe insurance business carried on by the insurer is carried so r ens outside Tanzania. (3 t ri)g hSubject to the provisions of this Part, a person resident in ATll. anzania shall not carry on reinsurance business unless he niiaza s registered as a reinsurer under this Act and in accordance an T with sections 24 and 31 of this Act. of nt Exclnumsieon of 22. The provisions of this Act shall apply to the provision of fr r vieendly societies o payment on death or permanent disability by friendly societies 5 G2 to its members or to the family of a member, duly registered ©20 under the law providing for the establishment of non-profit making societies, which do not afford benefits exceeding the sum of money which the Minister may, by regulation determine in the event of the death or permanent disability of a member. 248 THE INSURANCE ACT [CAP. 394 R.E. 2023] Application for 23.–(1) Every insurer applying to the Commissioner for registration registration or renewal of registration shall apply in the prescribed form and provide any additional documentation and information as the Commissioner may require. . (2) The Commissioner may stipulate any amendments AG O where he considers necessary to any documentation to ensure of n that they comply with the requirements of this Act. io iss (3) Within three months of receipt of an applicatioenrmp or where further information has been required, soooun t after receipt of such information, the Commissioner mith w ay grant d registration to the applicant and if the applicabtuio ten is refused, he shall furnish the applicant with the grounddiss tr iupon which the refusal is based. d o r e uc Registration 24.–(1) An insurer registered to copnrod duct business or seeking requirements registration shall satisfy the Com re bemissioner that- Cap. 212 (a) it is a company registe y mraed under the Companies Act or any other law in th k oeo United Republic; (b) it has a principa b hils office in Tanzania; t (c) it is a membrte or f of association of insurers; (d) its directoo pr a, manager, controller and principal officer who hda.n Ndle the day to day management of the company ares ear vlel resident in Tanzania; and (e) tsi trs e director, manager, controller and principal officer ighl r are persons with sufficient knowledge and experience A l nia . in insurance business. za (2) The provisions of subsection (1) shall apply mutatis n f T a mutandis to the reinsurer. nt o Oblringm e ations of 25.–(1) For the purpose of discharging the duty to act honestly dvireectors and osenior officers and in good faith to the best interests of an insurer, a director 5 G 02 or senior officer thereof shall take into account the interest of ©2 the company’s policy-holders. (2) Where a director or senior officer of an insurer fails to comply with subsection (1), a policy-holder may institute proceedings against such director or senior officer. 249 THE INSURANCE ACT [CAP. 394 R.E. 2023] Restriction 26.–(1) An insurer shall not have, as a significant owner, a on insurers whose officers director, manager, controller or principal officer any person who- are deemed (a) has been adjudged an un-discharged bankrupt in any unsuitable country; . (b) has made an assignment to or arrangement or AG composition with creditors which has not been of O n rescinded or set aside; siois (c) has been convicted by a court in any country poe rfm an offence involving dishonesty; or t tho u (d) is in the opinion of Commissioner, an unfi td w iperson to hold the office. bu te (2) For purposes of paragraph (d) of subtrsidis ection (1), the Board shall ratify the decision of the dC orommissioner after giving the affected person an opportudnui ctey to be heard. pro Requirement for 27.–(1) An insurer shall satisfyb e e trhe Commissioner that one directors third of its directors are unaffimalyia ted directors. (2) For the purpose ofo ot kh is section “an affiliated director” means an individual whhiso b- t (a) owns twentyo f rt five percent or more of shares in the insuranceo pc aompany; (b) is empdl.o Nyed by the company or an affiliated company; or e se rv (c) re tsi s a director or owner of twenty five percent of an gh l ri affiliated company. . A l a Grant of anz 2i 8.–(1) Where the Commissioner is satisfied that- registration an T (a) the class or classes of insurance business in respect of ofnt which the application is made will be conducted in e rnm accordance with sound insurance principles; ov e (b) the relevant capital requirements for insurers are G 02 5 adequate having regard to any regulations made in ©2 relation to them under section 19, have been complied with by the applicant; (c) the margin of solvency of the insurer is adequate having regard to any regulations made in relations to it under section 20; and 250 THE INSURANCE ACT [CAP. 394 R.E. 2023] (d) the applicant complies with the requirements of this Part, he may grant the registration and issue a registration certificate to the applicant. . (2) The Commissioner, in exercising his registration powers G OA in relation to any applicant intending to carry on his insurance of n business in Tanzania Zanzibar, consult with the Minist io isesr responsible for finance in the Revolutionary Governmepen rmt of Zanzibar. t ou (3) The Commissioner may, in granting registrati wointh, impose d such term and conditions as he may deem apprbou tperiate. (4) Where the Commissioner is not sattriidis sfied with the matter referred to in subsection (1) on wdh oi rc h he is required to be satisfied before granting an applicadut cieon, he shall notify the applicant in writing, stating reasonesp rfoor his intention to refuse to grant the application. r be (5) The Commissioner sh y ma all cause notice of the grant of a registration certificate issu k boe od under this section to be published in the Gazette. is th (6) A copy of thrte o fcertificate of registration issued shall be conspicuously doi sp aplayed to the public at each office of the insurer. d. N erv e s Cancellation of 29. Whe rrets e the Commissioner is satisfied that- registration (la h ri)g the insurance business of the insurer is not being . A l ia conducted in accordance with sound insurance za n principles; an f T (b) the insurer has ceased to carry on insurance business in o en t Tanzania; rnme (c) the insurer has applied for and been granted exemption ov G in terms of section 21(2); 250 (d) the insurer has required in writing the cancellation of ©2 the registration; (e) a final judgment obtained in any court in Tanzania against the insurer remains unsatisfied for thirty days after the date of judgment; or 251 THE INSURANCE ACT [CAP. 394 R.E. 2023] (f) the insurer is acting or has acted in contravention of any of the provisions of this Act, he may, give notice in writing to the insurer of the intention to- (i) cancel the registration certificate of the insurer; or . (ii) cancel the registration in any of the classes of OAG insurance business carried on by him in Tanzania. n o f io iss Prohibition after 30. An insurer shall not effect any new insurance policyrm or registration e renew any expiring insurance policy after the expiratoiuo t np of a period of three working days from the date of receitih w pt of the Commissioner’s notification in writing of the cuaten dcellation of the registration of that insurer, or after the r isetx ibpiration of the extended time, not exceeding- or d (a) a further three months whi d ucche the Commissioner may; or d pro (b) twelve months which theb eM reinister may, in a special case, in writing, grya ma nt. k o Retentions and 31.–(1) The Commissiosn bi eor may, in writing, set limits within reinsurances which a registered in osf uthrer may accept insurances of all or any t class by- pa r (a) restricdt.i Nnog the gross premium received by an insurer to a speervc eified maximum in anyone financial year; and (b) sr er esstricting the gross premium less gross reinsurance t rig h payable by an insurer to a specified maximum. A(ll. 2) The carrying on of all arrangements for reinsurance and ntiaza he insurance business shall be subject to the control of the an Commissioner. of T nt (3) In the exercise of the control referred to in subsection me rn (1), the Commissioner may, in writing, prohibit a registered ov e insurer from transacting any individual policy or all insurance 25 G or a class or classes where- ©20 (a) the amount of premium and commission to be paid or the manner in which the amount of premium and commission are to be ascertained are not specified in the contract of reinsurance; 252 THE INSURANCE ACT [CAP. 394 R.E. 2023] (b) in the opinion of the Commissioner, the retention limits are too low or too high; or (c) in the opinion of the Commissioner, the arrangements for reinsurance in respect of which persons, property . or interest are or are to be insured by the insurer in OAG the course of carrying on insurance business are not of n favorable to the economy or the insurance industry io io ssr are not in the public interest. ermp (4) The Commissioner having regard to any matterosu t which he considers relevant, may, by notice in writing to twhi teh insurer, d exempt an insurer, subject to any terms and cuoteb nditions and for any period which he specifies in the tri dins otice, from the requirements of this section. d o r uc e Amalgamation, 32.–(1) A transfer of ownership inpr oa dn insurer involving ten sale and transfer percent of the voting shares, amea rl e b gamation, merger, or other similar arrangement shall bmeay subject to the prior written approval of the Commissiooon k er. (2) The Commissionse rbhi may, as a condition for the granting t of his consent, reqrut oi fr e that the amendments which he may recommend be o mp aade to the transfer, sale, amalgamation, merger or othde. r N similar arrangements. (3) A sspere vecial consideration contained in section 87 shall apply ttso r einsurers transacting long term business requiring applr roigv hal under this section. l A ia. (4) The Commissioner may, in writing, require the za ninformation as may be necessary for the applicant to file when n f T a making an application for consent. nt o e Trarnnsmactions 33.–(1) An insurer shall not enter into any operating b ov eetween related parties transactions with related parties that exceed five percent G 02 5 of the total company assets or enter into any investment ©2 transactions with related parties that exceed one percent of the total company assets without prior written consent of the Commissioner. (2) For the purpose of this section, a “related party” includes- 253 THE INSURANCE ACT [CAP. 394 R.E. 2023] (a) a director or senior manager of the insurance company or an affiliated company; (b) an employee of the insurance company or an affiliated company; . (c) a person that owns or controls ten percent or more G OA of the voting shares of the insurance company or an n o f affiliate of the insurance company; siois (d) an affiliated company to the insurance company;pe rm (e) a corporation, partnership or joint venture whuet o re the insurance company or an affiliated company th w i has more d than ten percent of ownership interest; bu te (f) a sole audit practitioner or the partnde ri isrt incharge of the insurance company’s audit; or d (g) the directors, officers or employceedu es of a related party; (h) the spouse of a related partyep; ro (i) any relative of a related r be party that shares the same household as the relatmea dy party; or (j) a corporation in wbh k ooich a related party owns the majority of the shares. is of th rt Records and 34.–(1) All entri epsao in the books and accounts of an insurer preservation of records shall be entere N d.d in English or Kiswahili or in both languages. (2) Ans er viensurer shall maintain all records or accurate translat re tsi on of all records relating to insurance transaction insild rieg h and outside Tanzania undertaken by him, for a minimum l piae. Ariod of six years- anz (a) in the case of a life policy, after the maturity, and an f T cancellation of all records relating to insurance t o en transaction inside and outside Tanzania undertaken by m ern him; and ov G (b) in all other cases, after the maturity and cancellation or 02 5 realisation of the policy or date of loss. ©2 Amendment of 35.–(1) Where an account or balance sheet furnished by an accounts etc. insurer under section 40 is incorrect or is not prepared as prescribed, the Commissioner may, by notice in writing, call upon the insurer to amend that account or balance sheet and 254 THE INSURANCE ACT [CAP. 394 R.E. 2023] to furnish a current account or balance sheet or an account or balance sheet prepared as prescribed. (2) Where the insurer fails to comply with a notice to the satisfaction of the Commissioner, the Commissioner may . himself either amend the account or balance sheet giving the OAG insurer particulars of the amendments, or reject the account f n o or balance sheet. io iss (3) An account or balance sheet amended by an insupree rrm or the Commissioner under this section shall be treated aosu h t aving been originally submitted in its amended form. ith w ute d Audit of accounts 36.–(1) The accounts of every insurer shall be atruibis dited annually of insurers by an independent auditor resident in Ta norz dania appointed by the insurer with the prior written approvua d cel of the Commissioner. (2) The form of an audit referredr otdp o in subsection (1) shall be in accordance with the reqbuei rreements of the Companies Cap. 212 Act or recognised internatimoan y al accounting standards and shall contain such any ootoh ke r information or any additional declaration which the Mhis ibnister may prescribe. t (3) The auditor ap opf rt ointed under this section shall- (a) have a mi npao imum of three years experience in auditing an insud.r Nance entity; (b) be a e se r vmember of good standing of the National Board of A rets ccountants and Auditors; and (lc ri)g h not be a director or employee of any insurer or broker Al a. i conducting business in Tanzania. za n (4) Where the auditor of the insurer is, in the course of an f T discharging duties, satisfied that- t o en (a) there has been a breach of or non-compliance with the m ern provisions of the Act; ov G (b) a criminal offence involving fraud or dishonesty has 5 02 been committed by the insurer or any of its officers or ©2 employees; (c) a loss has been incurred or losses have been incurred which substantially reduce the solvency margin of the insurer; 255 THE INSURANCE ACT [CAP. 394 R.E. 2023] (d) an irregularity has occurred or irregularities have occurred which may jeopardise the security of policy holders or creditors of the insurer; or (e) he is unable to confirm that the claims of policy holders . are capable of being paid out of the assets of the insurer, AG O the auditor shall immediately report the matter to the of n Commissioner and to the insurer’s Board of Directorisss. io (5) The Commissioner may prescribe additional dutpiee rms of the auditor. ou t th w i Commissioner’s 37.–(1) The Commissioner may, by notice puubteli dshed in the powers in relation to commissions Gazette, determine the minimum and maximistur ibm commission and deposit rates payable by insurers to other insurers, br d o rokers or agents in of funds and management respect of all or any class of insurance uocre dreinsurance. expenses (2) The Commissioner may, by pnro dotice in writing, require an insurer to deposit into a trbu e e sr t to be administered by a person nominated by the Comay m missioner, within any time as stipulated in the said requi k osoition, in respect of any or each class of insurance business bhesi bi ng carried on by that insurer. t (3) After consid ret or fation of the extent and duration of the business carried a o o pn by an insurer and the provision generally made for madn. Nagement expenses in the premiums rates of insurers, th e se rev Commissioner may, by notice- (a) tsp ru eblished in the Gazette, require insurers to limit their l ri gh management expenses to an amount contained in the l a. A i notice; or anz (b) in writing to an insurer, allow dispensation from the an f T provisions of paragraph (a) to any other amount and nt o e for any period which the Commissioner shall consider ern m reasonable except that any period shall not exceed two Gov consecutive years. 25 ©20 Valuation of 38.–(1) The Minister may make regulations with respect to assets and liabilities the determination of the value of assets and the amount of liabilities in any case in which the value or amount is required by any provisions of this Act to be determined in accordance with valuation procedures. 256 THE INSURANCE ACT [CAP. 394 R.E. 2023] (2) Without prejudice to the provisions of subsection (l), regulations made under this section may provide that, for any specified purpose, assets or liabilities of any specified class or description shall be left out of account or shall be taken into . account only for a specified extent. OAG (3) For the purpose of this section, the Minister may make f n o separate regulations for the determination of the value of asse io istss and the amount of liabilities of general and long term insuermp ers. ut o Change of 39. An insurer may, with the approval of the Commithissioner, financial year w change its financial year. ute d ib str Annual and 40.–(1) An insurer shall submit to the Com i r md issioner- quarterly returns o (a) annual filings within three montehd c s after the end of its financial year; and u rod (b) quarterly filings within me ro epnth after the end of each quarter of its financial ayye bar. (2) A re-insurer shall ks mo ubmit its annual filings to the Commissioner within fo bo isu r months after the end of its financial year. th t o f (3) The annua pl afi r lings of insurers shall be subject to audit and review byd .t Nhoe insurer’s auditor. (4) The eCrv ehairman of the Board of Directors and one other director roess f the insurer or the reinsurer as the case may be shall attes rt htotig the accuracy of the annual and semi-annually filings by ll . A signing a statement of attestation. nia za (5) The Commissioner may, by regulations, specify the an T form and contents of the annual and semi-annually filings for of nt insurers and reinsurers. e rnm (6) The Commissioner may, at his discretion, extend the veo time within which the insurer or reinsurer should comply with 5 G 02 the provisions of subsection (1) and (2) by three months. ©2 (7) Without prejudice to subsection (6), an insurer or reinsurer shall be liable to pay to the Commissioner a penalty of one hundred thousand shillings for every day during which he is in default beyond the extended time granted by the Commissioner. 257 THE INSURANCE ACT [CAP. 394 R.E. 2023] (8) Where the insurer or reinsurer fails to furnish the required documents and information within the extended time or fails to pay the penalty, the insurer or reinsurer shall be regarded as having failed to comply with the provisions of . subsection (1) and (2). AG of O Publication 41.–(1) Every insurer shall, within fourteen days of makinssgi o n of audit and financial annual filings with the Commissioner, publish copies oef rmla i st statements audited balance sheet, income statement, cash flow st t oaute pment and statement of changes in equity in any newspa th wpi er as the Commissioner may direct. ute d (2) Where an insurer fails to comply with rib istthe requirements of this section, the insurer and every officerr od o f the insurer shall be liable to a default penalty. d uc e rod Establishment of 42.–(1) The directors of an insureer p re shall, after the first meeting Audit Committee following each annual generaayl b meeting, establish an Audit Committee of at least threoek mmembers, the majority of whom shall be directors of thei si nb osurer. (2) The Audit Co omf thmittee shall perform the functions as t specified in the re r o p gaulations. . N Publication of 43. An insurr d ver shall not publish or issue a document on which authorised capital there ha e sre b s een printed a statement of its- (ai)g h tsauthorised share capital, unless the statement also sets ll r ia. A forth the amount of its subscribed capital and of its an paid-up capital; or an z T (b) subscribed capital, unless the statement also sets forth of t amount of its paid-up capital. men n Pvoew rers, 44.–(1) The Minister may, by regulations- G orestriction and 5 instruction on (a) prohibit an insurer from making investments of a 20 2 © insurers specified class or description; (b) require an insurer to realise the whole or part of a particular investment within a specified period; and (c) require an insurer or all insurers to invest any percentage of the insurance funds of any insurers or 258 THE INSURANCE ACT [CAP. 394 R.E. 2023] insurer accruing in respect of their or its insurance business in Tanzania in any Tanzanian securities and any other securities in Tanzania, as may be specified. (2) The regulations may prescribe different percentages of . the insurance funds to be so invested according to the class or OAG description of an insurer. n o f (3) Except with the prior consent in writing of tihsse io Commissioner, an insurer shall not invest or otherwisep el remnd insurance fund moneys outside Tanzania. ou t (4) An insurer shall not borrow funds in exces wsi thof fifteen d percent of its total assets. te bu (5) The Minister may, by notice publishdeisd tr i in the Gazette, make an order enjoining the Commissido on r er himself to take or require an insurer to take any actido e unc which appears to the Commissioner appropriate to pro ro eptect the policy holders of the insurer against the risk that et b hr e insurer may be unable to meet its liabilities, or in the cmaasy e of an insurer transacting long term business, to meet re ok baosonable expectations of the policy- holders. is of th rt Investment 45.–(1) An insuo pr aer may, with the written consent of the requirements Authority invde.s Nt in derivative financial instruments. (2) The Aervs uethority shall not provide consent for an investment in deriv raets tive financial instruments unless the Authority is satis rfiige h l d that the intent of the investment is for the purpose of l hiae. Adging and that the insurer has a risk management system za ncapable of monitoring the investment. an f T (3) The Authority shall give a written consent within forty nt o e five days or such other period as the circumstances may rnme determine. ov 5 G 02 Trusteeship of 46.–(1) The Authority may, at any time before or during the ©2 assets course of investigations conducted in terms of section 144, require an insurer to transfer all or a specified portion of his assets into a trust to be administered by a person nominated by the Commissioner. 259 THE INSURANCE ACT [CAP. 394 R.E. 2023] (2) Except with the prior consent of the Commissioner, the assets which are the subject of trusteeship shall not be mortgaged, pledged or otherwise encumbered in any manner in favour of any other person. G. A Maintenance of 47. Every insurer shall prepare and keep a proper Register of of O Register its assets and such other information relating to the assets ion sosf the company. erm i p ut Preferred 48. Notwithstanding any law to the contrary, in theith oevent of creditors of insurer liquidation, insolvency or bankruptcy of a registeterde wd insurer- (a) the owners of life policy and other classtrs ibeus of long term business issued by the insurer shoar l dli have preference against all other creditors of the i cnedsurer in respect of the life insurance and long term b u roudsiness funds maintained by him; and repe (b) the owners of all otheary bpolicies issued by the insurer shall rank before an m oyk other creditor of the insurer in the distribution of t bo ihs e assets of the insurer which remain after the claim th ofs, if any, by owners of the life policies and t other clas s r paes of long term business against the estate whichd h. Naove been discharged. rvee Establishment 49.–(1) Thres e Board of Directors of an insurer shall, at the first of Investment Committee meet t iignhgs following each annual general meeting, establish a r . AC llommittee to be known as the Investment Committee anc iaonsisting of at least three members with the majority of nz Ta members being directors of the insurer. of t (2) The Investment Committee shall- n nm e (a) develop and recommend to the Board of Directors a r ov e prudent and comprehensive investment policy for the G 25 insurer; and ©20 (b) review the insurer’s investment policy on annual basis and make any recommendations for any changes to the Board of Directors. (3) The Board of Directors of an insurer shall establish an investment policy and review the policy on annual basis. 260 THE INSURANCE ACT [CAP. 394 R.E. 2023] (4) A prudent and comprehensive investment policy to be developed in terms of this section shall deal with all investment risks including credit risk, interest rate risk, exchange rate risk, liquidity risk and the safe keeping of investment assets. . (5) An insurer shall file its investment policy or any changes OAG to its investment policy with the Authority within fourteen of n days of being approved by the board of directors. iss io (6) An insurer shall not make investments thapte rmare inconsistent with its investment policy. t ou (7) Where the Authority believes on reasonable g roithw unds that d the investment policy is inconsistent with prudebnut teial standards, or is not comprehensive, or is not in the pubdliisc tr iinterest or does not comply with the provisions of the Acdt o, rt he Authority shall order the directors of the insurer to ce diummediately review the policy by taking into account matt ro eeprs specified in that order. r be Formulation of 50.–(1) The Board of Directmoarys of a reinsurer shall formulate policy a prudent and comprehenosoi kv e underwriting policy and review the policy on an annua b f th li sbasis. (2) Subject to thert por ovisions of subsection (1), a prudent and comprehensive uo pn aderwriting policy under this section shall deal with the ds.i Nze and nature of the risks the reinsurer intends to underwerrs ivtee, the types of products the reinsurer intends to offer in re tsc luding the assumption of retrocession business, the terrli h rtiog ries and currencies of risks to be accepted, the amount l oiaf. Abusiness to be ceded and the financial strength of companies anz to which risk shall be ceded. an f T (3) A reinsurer shall file its underwriting policy or any nt o e changes to it with the Commissioner within fourteen days of ern m being approved by the Board of Directors. ov G (4) Where the Commissioner believes on reasonable 250 grounds that the underwriting policy is inconsistent with ©2 prudent standards, or is not comprehensive, or is not in the public interest or does not comply with the provisions of the Act, the Commissioner may order the directors of the 261 THE INSURANCE ACT [CAP. 394 R.E. 2023] reinsurer to immediately review the policy taking into account the matters specified in the order. Classification 51.–(1) For the purpose of this Act, insurance business shall consist of long term business or general business and the term- . AG (a) “long term business” means insurance business of any f O o of the classes specified in Part A of the Second Scheduslsei o n to this Act; and i erm (b) “general business” means insurance business oouf t apny of the classes specified in Part B of the Second Swcit hh edule to this Act. d ute (2) For the purpose of this Act, the effectisitnr ibg and carrying out the contract whose principal object is d o rwithin one class of insurance business, but which containusc er delated and subsidiary provisions within another class, or pcrola dsses, shall be construed as constituting the carrying on eo rb fe insurance business of the first mentioned class, and nmo a yother, if subsection (3) or (4) applied to the contract. k oo (3) This subsectionh ias pb plies to a contract whose principal object is within anyo f t rt class of long term business but which contains subsidioa pr ay provisions within general business Class 1 or Class 2 ifd . t Nhe insurer is authorised to carry on long term business Clravsese s 1. (4) Th rets is subsection applies to a contract whose principal objel crigt h is within one of the classes of general business but which l c A iao. ntains subsidiary provisions within another of those classes, anz not being general classes. n f T a (5) In the event of any query, dispute or as a result of t o en the introduction of new types of insurance business, the ern m Commissioner may determine, by notice published in the v G o Gazette, which particular class or classes of insurance business 250 carried on by an insurer shall be dealt with. ©2 262 THE INSURANCE ACT [CAP. 394 R.E. 2023] PART IV ASSOCIATION OF UNDERWRITERS REGISTERED AS INSURERS G. Application of 52. The provisions of this Part shall apply only to associations OA Part IV f of underwriters registered as insurers and their members. n o iss io Commissioner 53.–(1) The Commissioner may determine conditionser mfor to determine p conditions for registration of an association of underwriters. ou t h registration (2) Notwithstanding the generality of subsecdt iwo itn (1), in determining the conditions for registration ofib ua tne association for underwriters, the Commissioner sha dlisl tr determine the necessity and amount of- r d o (a) classes of business underwrittednu c;e (b) capital requirements; ro rep (c) margins of solvency; be y (d) retention of premium ms a; k (e) deposits and inve sbtom o ents in Tanzania; (f) the appointmetnhif ts of a legal representative in Tanzania upon whomart foull legal service may be made; and (g) any additoi opN nal requirements and conditions considered by thveed C . ommissioner to be necessary. se r e Association of 54. No r ttsw ithstanding the provisions of any other written law, underwriters i h liable to premium an all sr s gociation of underwriters registered in terms of this Part tax sah. A i all pay to the Government of Tanzania an amount equal to n nz a two and a half percent or such other amount as the Minister f T a o may determine of all premiums receivable, of any nature, less en t premiums refunded, in respect of any calendar year within ern m sixty days at the end of that year. ov 5 G 02 Association of 55. The Commissioner may request any association of ©2 underwriter to deposit sums or underwriters to deposit a substantial sum or any securities securities which is satisfactory to the Commissioner into a trust to be administered by a person nominated by the Commissioner to 263 THE INSURANCE ACT [CAP. 394 R.E. 2023] keep the sum so deposited for so long as the association carries on business in the United Republic. Premium 56. A proportion to be determined by the Commissioner, of received to be held in trust all premiums received by an association of underwriters from . AG Tanzania insurance business, shall be held in trust in Tanzania of O by a trustee approved by the Commissioner for the payme n snsti o of the underwriting expenses of the association’s insuramni er ce business in the United Republic. ut p o ith Audit of accounts 57.–(1) An association of underwriters shall furnteids wh evidence of association of underwriters to the satisfaction of the Commissioner that u st rt ibhe accounts of each member of association are subject too ra dni annual audit by an independent auditor. ce d (2) The auditor of an associationduro of underwriters shall certify to the Committee of the aes sr eopciation whether or not the underwriting assets held by thye ba member at the close of each financial year are sufficiento tko m cover the underwriting liabilities attached at that time to st hb o i e accounts of the underwriters. (3) An association f oth o f underwriters shall furnish annually to t the Commissionera-r p (a) a certi No dfi. ed copy of the returns of insurance business carrerive ed on by the association and furnished in each es sfi rnancial year to the appropriate authority in the ht rig country where the association is constituted; A(ll. b) a certificate signed by the chairman of the association an ia z and the appropriate authority that the members have, n Ta in respect of the preceding financial year, complied of nt with the requirements of insurance law in the country e rnm where the association is constituted in as far as it relates e ov to associations of underwriters; and 25 G 0 (c) any other information which the Commissioner may ©2 require. 264 THE INSURANCE ACT [CAP. 394 R.E. 2023] PART V THIRD PARTY RIGHTS AGAINST INSURERS Third party rights 58.–(1) Where under any contract of insurance the insured is . against insurers on bankruptcy insured against liabilities to third parties which he may incur, G O A then- of on (a) in the event of the insured becoming insolvent i iossr bankrupt or making a composition or arrang epme rment t with its creditors; or tho u (b) in the case of the insured being a company,d i wn i the event of a winding up order being made, or a r te rib uesolution for a voluntary winding up being passed, s wdi i tth respect to the r company, or of a receiver or man eadgoer of the company’s business or undertaking beingu cod duly appointed, or of possession being taken by reo prr on behalf of the holders of any debentures secury ebd e by a floating charge, of any property comprised ki nm a or subject to the charge, if either before or after t h o boat event, any liability is incurred by the insured, his rightfs t ha isgainst the insurer under the contract in respect of the lairat obility shall notwithstanding anything in any Act or rule p N o f law to the contrary, be transferred to and vest in the trvhei dr.d party to whom the liability was so incurred. (2) W e rehsere an order is made under any law of insolvency for thhetsg administration of the estate of a deceased debtor accAlol rriding to the law of insolvency then, if any debt provable nian . insolvency is owing by the deceased in respect of a liability a an z against which he was insured under a contract of insurance of T t as being a liability to a third party, the deceased debtor’s right enm against the insurer under the contract in respect of that liability ernv shall, notwithstanding anything in the said law, be transferred o 5 G to and vest in the person to whom the debt is owing. 02 ©2 (3) In so far as the contract of insurance made in respect of any liability of the insured to third parties purports, whether directly or indirectly, to avoid the contract or to alter the right of the parties under it upon the happening to the insured of any of the events specified in subsection (1)(a) or (b) or upon 265 THE INSURANCE ACT [CAP. 394 R.E. 2023] the making of an order under the law of insolvency, in respect of his estate, the contract shall be of no effect. (4) Upon transfer made pursuant to subsection (1) or (2) the insurer shall, subject to the provisions of section 51, be . under the same liability to the third party as he would have OAG been to the insured but where- f ion o (a) the liability of the insurer to the insured exceeds tihsse liability of the insured to the third party, nothi rm pneg in this Part shall affect the rights of the insuredo ua t gainst the insurer in respect of the excess; and th d w i (b) the liability of the insurer to the insuredb ius te less than the liability of the insured to the third padritsy tr,i nothing in this part shall affect the rights of the thd oir r d party against the insured in respect of the balan ce dcue. (5) For the purpose of this Part r e p“loiabilities of third parties” shall not include any liability asseu r b med by reason of a contract of reinsurance. y m a (6) This Part shall nobto oakpply where a company is wound up voluntarily merely i th fso r the purpose of reconstruction or amalgamation with f art a onother company. o p Duty to give 59.–(1) A pedr. s Non who becomes insolvent or bankrupt or necessary rve information to who makeses a composition or arrangement with his creditors third parties shall gtisv re e, at the request of any person claiming as a third part h l yrig any information reasonably requested by that person l f A iao. r the purpose of ascertaining whether any rights have been anz transferred to and vested in that person by this Part and any Tan f contract of insurance and any other information which may o en t reasonably be requested to assist the person claiming. ern m (2) Where the information given to any person in pursuance ov G of subsection (1) discloses reasonable grounds for supposing 02 5 that there have or may have been transferred to him rights ©2 against any particular insurer, that insurer shall be subject to the same duty as is imposed by subsection (1) on the persons mentioned in it. 266 THE INSURANCE ACT [CAP. 394 R.E. 2023] (3) The duty to give information imposed by this section shall include a duty to allow all contracts of insurance, receipts for premiums and other relevant documents in the possession or power of the person on whom the duty is so imposed to be . inspected and copies of them to be taken. AG of O Settlement 60. Where the insured has become insolvent or bankrupt ossri o n between insurers and bankrupt where the insured is a company and a winding up order i er mhas person of no been passed, with respect to the company, no agreeme p onut t made effect between the insurer and the insured after liabilit yw ithhas been incurred to a third party and after the commenucte dment of the bankruptcy or winding up proceedings, as rib istthe case may be, nor any waiver, assignment, or other disp d oor sition made by, or payment made to the insured after the eoduc mmencement of the bankruptcy or winding up, shall be eroffdp ective to defeat or affect the right transferred to the thirdb ep raerty. ay m oP oAk RT VI b REGISTRATIO s tNhi OF INSURANCE BROKERS, f AGENTS ANarDt o AGENTS FOR BROKERS, ETC p No Insurance 61.–(1) A pedr.s on shall not act in Tanzania as an insurance brokers, agents erv e and agents for broker, ienssurance agent or agent for an insurance broker, loss adsj urbrokers to be ht ster, loss assessor, surveyor, risk manager, claims registered settlll eri gment agent or private investigator unless he is registered naias . Asuch in accordance with the provisions of this Part. zan (2) An insurance agent shall not act for both an insurance f T a o company and an insurance broker. nte (3) An employee of a registered insurance broker may accept rnm ve insurance business without himself being registered provided 5 G o the compensation of that employee is not related to the volume 022 of business so handled. © (4) An employee of a registered insurance agent or agent for an insurance broker may- (a) accept over the counter insurance business at the permanent office for that agent without being registered, 267 THE INSURANCE ACT [CAP. 394 R.E. 2023] provided that the compensation of such employee is not related to the volume of business so handled; or (b) accept insurance business elsewhere than at the permanent office of the agent without being registered, . provided that employee carries an identity card issued OAG in accordance with the provisions of section 64(3) and f n o he accepts only that insurance as permitted in terms isosf io the agency agreement of his principal. ermp ou t Agents to act for 62.–(1) An insurance agent registered for not more tithhan three one principal only w years may act for one insurer transacting genetreadl insurance business and one insurer transacting long trtib u is erm insurance business. or d (2) An insurance agent registered fo ed urc more than three years may act for up to three insurers regpisrot dered under the Act. (3) An insurance agent refe re brered to under subsection (1) shall not act to up to three inms auyrers unless- (a) there have been n k oo instances of non-compliance to this Act againsti st bh he agent for a period of three years t consecutively o;f rt and (b) the agento h p aas the approval in writing of all insurers that the aged.n Nt is acting for them. (4) An sa e egrvent for an insurance broker shall not act for more than ontse r ebroker registered under this Act. (5 ri)gl hAn insurance agent or agent for a broker shall not act l oiau. Atside the terms of an approved agency agreement. n za Insurer’s Tan 63.–(1) An insurer and an insurance broker shall be liable and broker o’sf responsinbtilities for the acts of their agents and of any employee of an agent in e for rangments carrying out the duties of an agent where the act complained of veo falls within the area of authority of the agent or his employee as 25 G 0 is explicitly stated in the agency agreement or might reasonably ©2 be implied from it by a person seeking assurance. (2) In so far as it affects a policy-holder or potential policy- holder, all premiums paid to an agent or an employee of an 268 THE INSURANCE ACT [CAP. 394 R.E. 2023] agent shall be deemed to have been paid to the insurer or broker for whom he is the agent. (3) This section shall not prevent an insurer or a broker from seeking redress against an agent or employee of an agent, or . both, as a result of the insurer or broker incurring an expense OAG or liability which, but for the provisions of this section, the of expense or liability would not otherwise have been incurred.sio n is (4) This section shall not prevent an agent from se rm peeking redress against his employee where an insurer or brokeoru t incurs an expense or liability under subsection (1) or (2) wai tnhd where d the said agent is similarly liable to the insurer oru tbeb roker under the provisions of subsection (3). str i di or Registration of 64.–(1) The Commissioner may mauckee d regulations setting agents down the minimum attributes andp rqo dualifications required to any person or body of persons to rwebe hom an agency agreement may be issued by an insurer omra yb roker. (2) An insurer or brok k oeor employing an agent shall issue to that agent a form of agheisn bcy agreement to be approved by the Commissioner. f t rt o (3) Every insuo pr aer and broker shall issue to each agent and each employede. Nof an agent identity card of a type approved by the Comm rve seissioner stating the name of the insurer or broker, the class r ets or classes of business the agent or employee of the agenl rtig his empowered to transact, whether he is empowered to l eiaff. Aect insurance cover and collect premiums, and the name, n za address and a photograph of the agent, or employee of an agent an f T approved by the insurer or broker as eligible to undertake o en t business as defined under section 61(4)(b). ern m (4) Insurers and brokers shall maintain- v G o (a) records of all agency agreements issued in accordance 250 with subsection (2); and ©2 (b) duplicates copies of all identity cards issued in accordance with subsection (3). (5) The Commissioner may refuse to permit the issue by an insurer or broker of an agency agreement to any person 269 THE INSURANCE ACT [CAP. 394 R.E. 2023] or body of persons who, in his opinion, does not possess the prescribed attributes or qualifications. Broker’s 65.–(1) Every insurance broker seeking registration or renewal application for registration of registration shall apply in the prescribed form and shall AG. provide any additional documentation and information which O of the Commissioner may require. sio n s (2) The Commissioner may stipulate any amendmenetsm i r he considers to be necessary to any document to ensureu t o tphat it complies with the requirements of the Act. th d w i te Restriction on 66.–(1) An insurance broker shall not hasv u treib as significant broker’s officers owner, director, manager, controller, prinocr i dpi al officer or any person who has- ed c (a) been adjudged an discharged u r obdankrupt in any country; (b) made an assignment to or ep e a rrrangement or composition with creditors which b ahyas not been rescinded or set aside; m ok (c) been convicted isb by o any court in any country of an offence invol vofi nthg dishonesty; or t (d) in the opianr p ion of the Commissioner, an unfitting qualifidc. a Ntoion or reputation to hold the office. (2) A deecrvi esion of the Commissioner made under subsection (1)(d) sh res asll be subject to ratification by the Board after giving the a riffg hetcted person an opportunity to be heard. . A ll Registration an6 ia7. An insurance broker registered to conduct business or requirements ofn z insurance broTkaers seeking registration shall satisfy the Commissioner that- Act No. oft (a) it is a limited company, that- 7 of 201e7n s. 38 Cap.n 2m12 (i) has been registered under the Companies Act; ve r o (ii) has a principal office in Tanzania; G 25 (iii) is a member of Association of Insurance Brokers ©20 in Tanzania; 270 THE INSURANCE ACT [CAP. 394 R.E. 2023] (iv) its director, controller, manager, or principal officer who handle the day to day management of the company are all resident in Tanzania; and (v) its director, manager, controller and principal . officer are persons with sufficient knowledge and AG O experience in insurance business; and n o f (b) at least two thirds of the controlling interest wheth io isesr in terms of shares, paid-up capital or voting rightesrmp are held by citizens of Tanzania; and ou t (c) where he is an individual person that- ith d w (i) he has a permanent established offi te bcue in Tanzania; (ii) he will be a resident in Tanzandiisa tri for more than two hundred days per calendd aor r year; and (iii) he is a person with sduu cffie cient business and knowledge and experi ro eepnce in insurance industry. r be Grant or refusal 68.–(1) Where the Commiss y of broker’s mioaner is satisfied that- application (a) the relevant securiotoy k deposits and capital requirements for the insuran b hcise broker are adequate having regard t to any regurtl ao ft ions made in relation to them under section 6o9 p; a (b) the redl.e Nvant trust accounts will be operated in a satisrfvaese ctory manner in accordance with section 72; (c) tsi nr esurance requirements necessarily required under gh l ri section 70 have been obtained by the applicant; and Al ia. (d) the applicant complies with the requirements of this anz Part, an f T the Commissioner may grant application for registration as a nt o e broker and issue the prescribed registration certificate. m ern (2) The Commissioner may, in granting registration, impose ov G such terms and conditions as he may deem appropriate. 5 02 (3) Where the Commissioner is not satisfied with the ©2 matter referred to in subsection (l) on which he is required to be satisfied before granting an application, he shall in writing, notify the applicant reasons for his intention to refuse to grant the registration. 271 THE INSURANCE ACT [CAP. 394 R.E. 2023] Broker’s capital 69.–(1) The Commissioner may, within the limits which the requirements Minister may prescribe, require a broker to deposit in trust in Tanzania by a trustee approved by the Commissioner, either in money form or in stipulated securities, such security in value . as stipulated by the Commissioner within the time which he G OA may consider reasonable. n o f (2) The Minister shall, in respect of a limited companisys i,o prescribe the minimum paid-up capital to be maintainpeed rm by a broker. ut o (3) A broker who permits its paid-up capital to bieth reduced d w to a level below that prescribed by the Ministbeur t,e commits an offence and shall, in addition to any other petrnidis alty stipulated under this Act, be liable for cancellation ofo rl d icence. uc e Broker’s 70.–(1) A broker shall be liable for rhodp is acts or omissions and responsibility and insurance requirements for the acts or ombies rseions of his agents and staff requirements in transacting insurance bumsai yn ess, and shall insure himself against that liability. k oo (2) Without preju b hdisice to subsection (1), where the t Commissioner is sart toi fs fied that insurance cannot be obtained to cover against a o pall staff, he may exempt the broker from effecting insur.a Nd nce and instead require the broker to increase the securisteyr v, eif any, deposited pursuant to section 69 by any sum wh e tsi rch the Commissioner may consider reasonable. (3i)g hl r The Commissioner may, by notice in writing to the l b iar. o Aker, require the latter to provide a minimum indemnity n za in a stated amount against losses arising as a result of the an f T provisions of subsection (1) which the Commissioner t o en considers appropriate, but the minimum indemnity shall not m ern be less or more than that which the Minister may prescribe in ov G the regulations. 250 (4) The Commissioner may, by notice in writing to the ©2 insurance broker, require the latter to restrict the first amount payable by the insurance broker in respect of any claim or series of claims insured by virtue of the provisions of subsection (1) as the Commissioner may consider appropriate. 272 THE INSURANCE ACT [CAP. 394 R.E. 2023] (5) Notwithstanding subsection (4), where the first amount payable cannot be reduced to the sum as the Commissioner considers appropriate, the Commissioner may exempt the broker from effecting insurance and instead require the broker . to increase the security, if any, deposited by him pursuant to OAG section 69 by any sum which the Commissioner may consider of reasonable. sio n is erm Broker’s records 71.–(1) A broker shall ensure that all entries in the booutk ps and and right of o access accounts of a broker are entered in English or Kiswaith w hili or in both languages. ted (2) A broker shall maintain records relatitnrib u is g to insurance transactions undertaken by him inside and oor udtside Tanzania for a minimum period of six years after thuec em d aturity, cancellation or realisation of insurance policy orp aroft der the date of loss under the policy. e r e b (3) A broker shall provide y maaccess to a client or his authorised legal representative to al k olo documents and correspondences issued or held by thise bh broker of insurance transactions t undertaken on beha f rt lof of the client. (4) Notwithstoa pn ading subsection (3), a person shall not be entitled to tadk. e N copies of any document or correspondence without th e seer vconsent of the broker unless there is an order of court tots rt ehat effect. (l5 ri)g hA broker shall not alter, amend, remove or destroy records Al r iae.quired to be maintained in accordance with subsection (2) n za relating to insurance transactions. n f T a Paymentn ot f o 72.–(1) The Commissioner shall, by order in the Gazette, premmiuems and comrnmission prescribe minimum rates of premium payable under this Act Avceo t No. for different classes of insurance. 5 G7 of 2017 s. 39 02 (2) Subject to subsection (1), an insured shall pay to ©2 a Tanzanian insurer all premiums due to the insurer by depositing to the account of the insurer for insurance cover effected at the instruction of the insured. 273 THE INSURANCE ACT [CAP. 394 R.E. 2023] (3) A broker shall be entitled to a commission from the insurer for insurance cover issued to the insured under its brokerage. (4) A broker shall not receive any premium from the insured . for insurance cover effected at the instruction of the insured. OAG (5) Any Chief Executive Officer or principal officer of a n o f broker who receives premium in contravention of subsectiosniois (3) commits an offence and on conviction, shall be liablpee rtmo a fine of not less than ten million shillings and not excut o eeding fifty million shilling or imprisonment of a term no wti t hless than d two years but not more than five years or to bot te bhu . (6) Without prejudice to subsection (5)d, i istarny broker who contravenes this section shall, in addition o tr d o the penalty, bear all liabilities arising from the act consdtuit cue ting the offence. pro Broker’s accounts 73.–(1) The accounts of every regbies rteered broker shall be audited annually by an auditor residemnaty i n Tanzania appointed with the prior written approval of t k ohoe Authority. Cap. 212 (2) The audit referr b heisd to in subsection (l) shall be made t in accordance with otfh rt e requirements of the Companies Act and shall containo po a ther information or additional declaration which the Mind. i Nster may prescribe. (3) Thes earu veditor shall audit trust accounts maintained by the broker sin r e t accordance with the provisions of section 72(3) and shal gh l lr istate in the accounts whether, in his opinion, they comply l wia.i Ath the provisions of the Act. anz (4) Where the Authority has accepted a guarantee in lieu n f T a of the maintenance of a trust account in accordance with t o en the provisions of section 72(4), the broker shall ensure that a m ern separate record is maintained of all money received from or v G o for a client. 5 02 ©2 Cancellation of 74. Where the Commissioner is satisfied that- registration (a) any business of any insurance broker or agent is not being conducted in accordance with sound business principles; 274 THE INSURANCE ACT [CAP. 394 R.E. 2023] (b) any broker or agent has ceased to carry on insurance broking business or insurance agency in Tanzania; (c) any broker or agent has requested in writing the cancellation of the registration; or . (d) any broker or agent is acting or has acted in AG O contravention of any of the provisions of this Act, of n he may give notice in writing to the insurance broker or age io isnst of his intention to cancel the registration of that brokpee rm or agent. t ou (2) For the purpose of proving that the busi wnitehss of an d insurance agent is not being conducted in acbcu toerdance with sound business principles, the Commissionedr ri is st hall have regard to the following malpractices: d o r (a) misappropriation of premiums ce du collected; (b) under banking of premiumesp rcoollected; (c) forgery in banking of the b ep rremiums collected; (d) late or delay in bankinmgay of the premiums collected; (e) non-accounting obfo orkeceipts; (f) issuance of ag ethn ist s own cheque or banking in lieu of cash or cheqrtu oe f collected from clients; (g) presentinog p aunpaid (dishonoured) cheque; (h) defrau N ed . ing such as backdating of cover notes or any othserr v forms of colluding with clients; e (i) r htsc over issued without receipt of premiums unauthorised g All r i credit facility; or a. i (j) any form of contravention considered to be grave under an nz the provisions of this Act. Ta of Display t e onf 75. A copy of the certificate of registration issued under section certinfimcate of regeirstration 68 shall be conspicuously displayed to the public at each office Gov of the insurance broker. 5 20 2 © Financial year of 76. The financial year of an insurance broker may be changed broker by the broker with approval of the Commissioner. 275 THE INSURANCE ACT [CAP. 394 R.E. 2023] Broker’s 77.–(1) A transfer, sale, amalgamation, takeover of the amalgamation, sale and transfer ownership of or business of a broker or corporate insurance agent or other similar arrangement in respect of it, shall not be entered into by an insurance broker without the prior written . approval of the Commissioner. OAG (2) The Commissioner, in deciding whether to grant of n approval, shall primarily consider whether the terms are in tihsse io interest of the policy-holders or the economy or the insuprea rmnce industry or in the public interest. ou t (3) The Commissioner may, as a condition ofi thgranting d w approval, require that any amendment he re te trib cuommended is made to the transfer, sale, amalgamation, tdaiske over or other similar arrangement. d o r e uc Broker’s annual 78.–(1) A broker shall submit to thepr oC dommissioner- and quarterly returns (a) annual returns within thr erebe e months of the end of its financial year; and y ma (b) its quarterly return k oos to the Commissioner within one month of the enhids bof each quarter of the financial year. t (2) The annual rtr oe ft urns of a broker shall be audited and reviewed by the ob pr aoker’s auditor. (3) The chda.i Nrman of the Board of Directors and one other director sshear vlel attest to the accuracy of the annual returns by signingts a r e statement of attestation. ( gh l4 ri) The Commissioner may, at his discretion, extend the l tiai.m Ae during which the broker shall comply with the provisions za nof subsection (1) by three months. Tan f (5) Without prejudice to subsection (4), a broker shall be nt o e liable to pay to the Commissioner a penalty of twenty-five ern m thousand shillings for every day during which he is in default ov G beyond the extended time granted by the Commissioner. 02 5 (6) Where the broker fails to furnish the required documents ©2 and information within the extended time or fails to pay the penalty, the broker shall be regarded as having failed to comply with the provisions of subsection (1). 276 THE INSURANCE ACT [CAP. 394 R.E. 2023] (7) The Commissioner shall after consultation with brokers and after issuing a sixty days notice, prescribe the form and contents of the annual and quarterly returns required from brokers. . AG PART VII of O on MANDATORY REINSURANCE CESSIONS siis pe rm Reinsurance with 79.–(1) Every insurer shall be required to offer to be pla t ocue with- international th organisation (a) the African Reinsurance Corporation (Adf wriica-Re), a minimum of five percent of its reinsuibrua tne ce cessions, r in accordance with Article 27 of th deis tAgreement that established Africa-Re; and r ed o (b) the Preferential Trade Area c duReinsurance Company o (ZEP-RE), a minimum of t r reenp percent of its reinsurance cessions, in accordancey wb eith Articles 20 and 21 of the Agreement establish a ki nmg ZEP-RE. (2) Subject to any ame nbod oment of the Agreement establishing Africa-Re, and ZEP-f RthE is , the Commissioner may, by order published in the aGrt oazette, vary the minimum reinsurance cessions specifieod p N by subsection (1). (3) Subseecdv t. ion (1) shall not prevent any insurance or reinsurancsere er institution from entering into direct reinsurance arranghetsm ent with Africa-Re and ZEP-RE in respect of the g wh ri Aoll le or part of the risks undertaken by that institution or nfiar .om making any other arrangements which are mutually nz a a acceptable to Africa-Re or ZEP-RE and that other institution. T t o f (4) The Commissioner may issue any direction which he n me deems necessary or expedient for carrying out the purposes ve rn of this Part. o 5 G2 20 Acceptance 80. Where ZEP-RE or Africa-Re deems it necessary or prudent, © or decline of business by ZEP- it shall exercise the rights to accept or decline all or part of RE or business offered to be placed with them under this Act, and in Africa-Re the latter case, they shall furnish the insurer concerned with the reason for the refusal. 277 THE INSURANCE ACT [CAP. 394 R.E. 2023] Appeal by ceding 81.The ceding insurer may appeal against the refusal by ZEP- institution RE or Africa-Re to the Board of Directors of the respective companies in accordance with the Agreement establishing ZEP-RE or Africa-Re. G. A Liability to cease 82. Where reinsurance cession is refused under this Part, any f Oo on refusal liability of the insurer concerned arising under this Act ion sisn respect of reinsurance cession shall cease. i erm ut p Failure to comply 83.–(1) A person who fails to comply with the pithroovisions of this Part or to comply with any direction isds uwte ed by the Commissioner regarding anything under thisi bustr Part, commits an offence. di or (2) Where the offence under subsectiodn ce (1) is committed by a natural person, that person shall in dauro ddition to fine be liable to imprisonment for a term not eex p rceeeding three years. (3) Where the offence is coy mba mitted by a body corporate then, notwithstanding thoek mimposition of any penalty, the commission of the offeins cb oe shall constitute sufficient grounds for which the Commof th issioner may apply to the court for the t winding up of th r pa t body corporate if it is incorporated in Tanzania. . N o d erv e National 84. Ever yre sTanzanian insurer shall reinsure a proportion of each Reinsurance Corporation policiygh o tsf insurance issued or reinsured in Tanzania by insurers, GN. No. in l . Aal rny proportion and manner specified in the Tanzania 35 of 2001 ia anNational Reinsurance Corporation (Establishment) Order, or nz Ta in which every insurer shall place with the Corporation, any f t o proportion of its reinsurance business from Tanzania. men ve rn o PART VIII 5 G 02 SPECIAL PROVISIONS RELATING TO LONG ©2 TERM (LIFE) AND OTHER POLICIES Life insurance 85.–(1) Every insurer registered to transact long term insurance tables or statements business shall within three months from the effective date of this Act or in event of subsequent alteration within one 278 THE INSURANCE ACT [CAP. 394 R.E. 2023] month from the implementation of the alteration, furnish the Commissioner with- (a) a copy of every printed standard policy document and standard endorsement and every table or statement . of the benefits including paid up and surrender value AG O which the insurer ordinarily undertakes to grant in n o f respect of policies insuring normal lives; and io iss (b) a report from an actuary approved by the Commissieormp ner that any table or statement furnished is actuarialloyu ts ound. (2) An insurer shall not make use of any policy dit w ohcument, d table or statement in the conduct of its long te b uterm business unless an actuary approved by the Commiss tri dioisner has reported that it is actuarially sound. d o r (3) An insurer shall not make use douf c eany policy document, table or statement in the conduct poroe f his long term business where- e r b (a) the basis of payment mto ay or remuneration of the insurer other than by a cha k bo orge upon the relevant life insurance fund or the thm is anagement costs actually incurred together wit f rth o a proportion of any established surplus from thato pli afe insurance fund to such insurer; and (b) the apdp. r N e oval of the Commissioner has not been sought ansde r vobtained in writing to any alternative defined re htsbasis of formular of payment to or remuneration of the l ri g l insurer. . Aia (4) An investment unit policy where policy-holders purchase za n n investment units shall be deemed to require the insurer to seek Ta of the approval of Commissioner under subsection (3)(b). en t Inesurnrmance interest 86.–(1) Subject to the provisions of this Act and section 132 no ofovr life assurance G policy of life insurance shall be issued on the life or lives of any 5 02 person or persons other than as provided in subsection (2). ©2 (2) An insurable interest shall be deemed to be held by- (a) a parent of a minor or the guardian of the minor but only to the extent as provided by section 96; (b) a husband on the life of his wife; (c) a wife on the life of the husband; 279 THE INSURANCE ACT [CAP. 394 R.E. 2023] (d) any person on the life of another upon whom he is wholly or in part dependent for support or education; (e) a company or other person, on the life of an officer or employee; and . (f) a person who has a pecuniary interest in the duration OAG of the life of another person in the life of that person to of n the extent only of that pecuniary interest at the outsets.iois (3) A life insurance policy shall not be valid unlespse, r mthe names of the person or persons whose life or lives areo iun t sured and of the person or persons interested or to whose uwisthe, benefit d or on whose account the policy has been mad te beu are identified by names on the policy document. str i di (4) Notwithstanding subsection (3), ad l oifre insurance policy, for the benefit of unnamed person f ce daulling within a specified class or description if the class or ro edpescription is stated in the policy with sufficient particulars r b teo make it possible to establish the identity of all persons wh mo a yat any given time are entitled to benefit under the policy sbho oakll not be invalidated. s th i Amalgamation 87.–(1) Where it isr t ion f tended to sell or transfer the long term and transfer of long term business of any ino spu a rer or to amalgamate the long term business business of two or mored .i Nnsurers, anyone of whom is an insurer registered under this Arvese ct, the principal officer of each Tanzanian insurer shall, ptrs iro e r to application to the Commissioner under section 32 ol f h ri gthe Act- . A l ia (a) publish in the Gazette notice of his intention to make anz application to the Commissioner; an f T (b) post to the registered or last known address of each nt o e member or policy-holder in Tanzania- ern m (i) an abstract containing the material facts embodied Gov in the agreement under which the amalgamation, 250 sale or transfer is proposed to be effected; ©2 (ii) copies of the actual reports abstract upon which the agreement is founded including a report by an actuary previously approved by the Commissioner; and 280 THE INSURANCE ACT [CAP. 394 R.E. 2023] (iii) a printed pro-forma or letter addressed to the Commissioner by completing it with his policy number and name, and a policy-holder or member can indicate whether he approves or disapproves . the proposed amalgamation, sale or transfer; and AG (c) open for inspection, at the office of the insurer in Tanzania, of O n by policy-holders and shareholders for a period of oinsse io month after publication in the Gazette, the full text poef rm the agreement of amalgamation, sale or transfer. ut o (2) The Commissioner shall not sanction the ag wreithement of d amalgamation, sale or transfer if within two mboun teths from the date of publication in the Gazette as requireddi sb tryi subsection (1) (a), policy-holders or members representdin org one third or more of the total number insured by any ofd tuh cee insurer intending to amalgamate, sell or transfer their leop rnog term business indicate their disapproval of the said ama r belgamation, sale or transfer by forwarding the pro-forma orm la eytter to the Commissioner. (3) Where an amalgam k boa otion, sale or transfer has taken place in accordance with the th p isr ovisions of this section, no life policy holder or membersr ts oh fall be regarded as having abandoned any claim which he w pao ould have had against the original insurer or to have adc. N e cepted in place of it the liability of another insurer, un rv seless he or his agent has signed a written statement e abandhotsn ring that claim and accepting in place of the liability of thatll roi gther insurer. . Aia Transfer powers n za 88.–(1) Where an insurer carrying on long term insurance of Commissionaenr for long termf T business has not issued a new policy for a period of twelve months o busines t esn from the date of the issue of the last policy, the Commissioner ern m may direct the insurer to frame proposals for transfer or Gov amalgamation of his business to or with another insurer. 5 02 (2) Where an insurer fails to comply with a direction ©2 under subsection (1), or where the proposals framed by the insurer are in the opinion of the Authority unsatisfactory, the Commissioner may himself frame a scheme for the transfer of the business to another insurer either nominated by the first 281 THE INSURANCE ACT [CAP. 394 R.E. 2023] mentioned insurer and approved by the insurer selected by the Commissioner. (3) Where an insurer fails to implement a scheme framed by the Commissioner and the Authority considers the continuance . of business of that insurer is likely to lead to insolvency or is OAG otherwise contrary to the interest of the policy holder, he may- of (a) order an investigation of that insurer under sectiosnio n is 144; or ermp (b) apply to the court for winding up the businessu t o of the insurer in terms of section 154. with d ute Periodic actuarial 89.–(1) Registered insurer carrying on long te rib isrtm business shall investigation cause an investigation to be made into th oer dfinancial position of the insurer and of each life insuranucee d fund established by him including a valuation of their pirno ddividual liabilities by an actuary approved by the Commbises rieoner- (a) once in every two yearsy ma or at any shorter period which may be prescribedo oo k r required by the Commissioner; and is b th (b) prior to an f r t oinsurer wishing to distribute profits or transfer sou pm a s from the life insurance fund other than paymedn. Nt and investments under long term business or masenr vaegement costs actually incurred. (2) Ths r e t e actuarial investigation referred to in subsection (l), ls rhiga h ll be completed within six months of the expiry of the l piae. Ariod to which it relates or within any extended time which n za the Commissioner may allow. an f T (3) Failure of the insurer to complete the investigation o en t within the time stipulated under subsection (2) shall constitute m ern an offence under this Act. v G o (4) Any investigation undertaken in accordance with the 5 02 provisions of subsection (l), the value of any assets and the ©2 amount of any liability shall be determined in accordance with the method of valuation prescribed. (5) An actuary conducting an investigation undertaken in accordance with the provisions of this section shall submit 282 THE INSURANCE ACT [CAP. 394 R.E. 2023] to the Commissioner within three months of the completion of his investigation an abstract and valuation report in the prescribed form. Establishment 90.–(1) An insurer carrying on long term insurance business G. of statutory life A insurance fund after the date on which this Act comes into force shall, as at O of the date of commencement of his next financial year, or at th io sse n date of the commencement of that insurance fund busienrme iss, establish and maintain a statutory life insurance fund p ouk t nown as the “life insurance fund” under an appropriatei th w name in respect of the long term insurance business carruieted d on by him. (2) An insurer may establish and maintaisitnr ib a separate life insurance fund, under an appropriate namor ed in respect of any class or classes of his long term insuranucee d business: Provided that, where an insurerp reo dstablishes a separate life insurance fund in respect of pabr e et r of the long term insurance business of the insured, mhae y shall forthwith notify the Commissioner in writing kf oo an establishment of the fund, the date from which the fu b hisnd is established, the part of the long t term insurance busri f tn oess of the insured in respect of which the fund is establishoe dp a and the name of the fund. (3) Whered . a Nn insurer carries on a long term insurance business osefr vme ore than one class, the Commissioner may in writingts d r eirect the insurer to- (la ri)g h establish, maintain and appropriately name one or Al ia. more separate funds in respect of any class or classes of n za long term insurance business carried on by him; an f T (b) maintain an account in respect of each of those classes o en t of long term insurance business; and ern m (c) maintain separate life and annuity funds within the Gov limits which he shall advise. 5 02 (4) All amounts received by an insurer in respect of any ©2 class of long term insurance business after the establishment by the insurer of a life insurance fund under this section shall be deposited into that fund. 283 THE INSURANCE ACT [CAP. 394 R.E. 2023] (5) Where, at any time- (a) an insurer is maintaining more than one life insurance fund in respect of his long term insurance business; and (b) a particular policy ceases to be included in the part . of the long term insurance business of the insurer G OA in respect of which one of the life insurance funds is n o f maintained, in this subsection referred to as “the fir stiois fund”, the insurer shall- pe rm (i) transfer from the first fund to the seconoud t fund assets equal to the liability on the po lwiic thy at that d time ascertained by an actuary apbup teroved by the Commissioner; and ri dis t (ii) transfer from the assets ofd ot r he insurer to the second fund an amount e ce dquuivalent to that amount by which the assets acecp rrouing to that policy from the first fund are lesse tr b han the liability on policy. (6) The income arising fro mm a ythe investment of the assets of a life insurance fund shall b ok beo carried to and form part of that fund. (7) The assets of etha isc h life insurance fund shall be kept distinct and separat f rte o from all other assets of the insurer. (8) An insureo rp acarrying on long term insurance business shall maintain. Ned books of account and other records which are necessary feorvs r identifying- e (a) htst hr e assets representing each life insurance fund ll r ig maintained by each of those classes of long term a. A i insurance business; and an nz (b) liabilities attributable to that class or as the case may be of Ta each of those classes of long term insurance business. nt e Apeprnli mcation of 91.–(1) Subject to subsection (2) and (4) of this section, the oavssets of insurer Gwith long term assets representing the life insurance fund or funds maintained 02 5 business by an insurer registered to transact long term business shall- ©2 (a) be applicable only for the purpose of that business; and (b) not be transferred so as to be available for other purpose of the company except when the transfer constitutes reimbursement of expenditure borne by other assets in the same or the last preceding financial year in 284 THE INSURANCE ACT [CAP. 394 R.E. 2023] discharging liabilities wholly or partly attributable to long term business. (2) Where the value of the assets mentioned in subsection (1) is shown by an actuarial investigation to exceed the amount . of the liabilities attributable to the company’s long term G OA business, the restriction imposed by that subsection shall not n o f apply to assets as represents the excess. io iss (3) Subsection (2) shall not authorise a transfer or poe rtmher application of assets by reference to an actuarial investiguat o tion at any time after the date of commencement of the in wviethstigation d and before thirty days after the date when the bau tbestract of the actuarial report required under the terms ofd is teriction 89 of this Act has been deposited with the Authoritdy o. r (4) |This section shall not prec e dulu c de an insurer from exchanging at fair market value paroe ssets representing a life insurance fund maintained by r b ethe company in respect of its long term business for o ay mther assets of the company or a company connected withb oit o.k (5) A mortgage or hcihs t arge, including charge imposed by a court on the applica f rtt oion of a decree holder, shall be void to the extent to which iot p c aontravenes subsection (1) of this section. (6) The aesds . eNts of a life insurance fund maintained by a company sienr v respect of its long term business may not be used e for the r h tspurposes of any other business of the company or of a comll rpi gany connected with it notwithstanding any arrangement fiao. r A its subsequent repayment out of the receipt of that other n nz a business. f T a o (7) An insurer acting in contravention of subsection (1), t en commits an offence under this Act. rnme (8) Every director, manager, controller and principal officer ov G of an insurer shall have the same civil liability in the event of 25 20 a contravention of the provisions of subsection (1) as if he © had been a trustee under a trust for the execution of those provisions in respect of that fund, and as if the appropriate policy-holders have been beneficiaries of that trust unless the director, manager, controller or principal officer proves that 285 THE INSURANCE ACT [CAP. 394 R.E. 2023] the contravention occurred without his knowledge and that he used all due diligence to prevent the contravention. (9) An insurer to which this Part applies and a company of which an insurer is a subsidiary shall not declare a dividend . at anytime when the value of the assets representing the life OAG insurance fund or funds maintained by the insurer in respect n o f of its long term business as determined in accordance wiistsh io any applicable valuation regulation is less than the amouenrmp t of the amount of the liabilities attributable to that busineust o s as so determined. with ute d Restriction on 92.–(1) Neither an insurer who transact lonistgr ib term business transaction with connected person nor a subordinate company of that insurer d o shall enter into a transaction to which this section appliese-duc (a) at a time when the aggregatper oo d f the value of the assets and the amount of the el b iraebilities attributable to the transaction already en maytered into by the insurer and its subordinate cooom k panies exceeds the prescribed percentage of th b hies total amount standing to the credit of t the insurer’sr loi ff t e insurance funds; or (b) at any ot a oh per time when the aggregate of the value of those da.s Nsets and the amount of those liabilities would excseere ved that percentage if the transaction were entered tsi nr eto. (2i)g hl r This section applies to any transaction entered into by l a A ian. y insurer, whether or not himself is a subordinate company za nof another company being a transaction under which- Tan f (a) a person connected with the insurer will owe it money; nt o e (b) the insurer acquires shares in a company which is a rnme person connected with it; or ov G (c) the insurer has undertaken a liability to meet an 5 02 obligation of a person connected with it or to hold ©2 that person to meet an obligation if the right to receive the money would constitute a long term asset of the insurer, the acquisition is made out of his life insurance funds or the liability would fall to be discharged out of these funds. 286 THE INSURANCE ACT [CAP. 394 R.E. 2023] (3) Without prejudice to subsection (2), this section applies to any transaction entered upon by a subordinate company of any insurer being a transaction under which- (a) the insurer or a person connected with it owe money . to the subordinate company, not being money owed by OAG the insurer which can be properly paid out of his life f n o insurance funds; io iss (b) the subordinate company acquires shares in the inpseu rmrer or in a company which is a person connected owu ti th the insurer; or th d w i (c) the subordinate company has undertabku teen a liability to meet an obligation of the insurerst r i di or of a person connected with that company or r dto o help the insurer or that person to meet an obligatioucd ne. (4) Notwithstanding subsectione p( r2o), where the subordinate company is itself an insurer, this b es er ction shall not apply to that transaction if the right to rec ay emive the money would constitute a long term assets of the suboob rkdinate company or the acquisition is made out of its insu tr haisnce funds or the liability would fall to be discharged out orft ot fhose funds as the case may be. (5) In this seoc pt aion, “subordinate company” in relation to any insurer mde. e aNns- (a) a csoerm v pany having equity share capital some or all of re htsw hich is held by the insurer as part of its long term rigll assets where the share capital so held by the insurer- . Aia (i) amounts to more than half in nominal value of an nz share capital; and Ta of (ii) confers on the insurer the power to appoint or nt e remove the holders of all or a majority of the ern m directorship of the company whose share capital it Gov holds and more than one half of the voting power 5 20 2 at any general meeting of that company; and © (b) a company having equity share capital some or all of which is held by another company which is itself a subordinate company of the insurer where the share capital held by that other company- 287 THE INSURANCE ACT [CAP. 394 R.E. 2023] (i) amounts to more than half in nominal value of that share capital; and (ii) confers on that other company the power to appoint or remove the holders of all or a majority . of the directorship of the company whose share G OA capital it holds and more than one half of the f n o voting power at any general meeting of thastiois company, rm pe and for the purpose of this subsection, share capital t ohueld for any person by a nominee shall, except where tha wt i tph erson is d connected only in a fiduciary capacity, be treauteteb d as held by that person, and share capital held by a perdsiso trni in a fiduciary capacity or by way of security shall be tdr eoa r ted as not held by that person. uc e d (6) A person is connected with ipnroe surer if that person is not a subordinate company of the inseu r b rer but- (a) controls, or is a part nmeayr of a person who controls the insurer; oo k b (b) being a comp athn isy , is controlled by the insurer or by another persrt oo fn who also controls the insurer; or (c) is a direct opao r of the insurer or the wife or husband or a mino . N erd son or daughter of a director, and for the purpose of stehr vis subsection a person controls a company, if he is sa r e ht controller within the meaning of this Act. (ll7 ri) g The value of any assets and the amount of any liabilities siah. Aall be determined in accordance with any applicable an nz valuation regulations. Ta of (8) In this section- nt e “company” except in the expression “subordinate company”, m Caepr.n 212 has the same meaning as in the Companies Act; v G o “daughter” includes step daughter; 02 5 2 “equity share capital” means in relation to a company, its © issued share capital excluding any part of it which neither as respects dividends nor as respect capital, carries any right to participate beyond a specified amount in a distribution; 288 THE INSURANCE ACT [CAP. 394 R.E. 2023] “insurer” includes any body corporate; “liability” includes a contingent liability; “long term assets” and “life insurance funds” in relation to an insurer, means respectively assets representing the . fund or funds maintained by the insurer in respect of its OAG long term insurance business; of n “prescribed percentage” means five percent or any greatisesr io percentage which may be defined elsewhere in this rm pAect; Cap. 212 “share” has the same meaning as in the Companies Aouc t t; and “son” includes step son. with d (9) This section shall not be construed absu temaking any transaction unenforceable as between parsttir i di es to it or as otherwise making unenforceable any ridgoh r ts or liabilities in respect of property. ceu rod ep Reinsurance 93. An insurer transacting longe rb term business in Tanzania contract of long term insurance shall not enter into contract o y mfa reinsurance against any liability of its long term business oion k Tanzania otherwise than with a long term insurer or reinis h sburer approved by the Commissioner. of t t Allocation to 94.–(1) Where in p tah r e case of an insurer transacting long term policy holders business- . N o d (a) theerrev eis an established surplus in a life insurance fund e si nr swhich both the insurer and the long term policy- ht rig holders of any category are eligible to participate; and A(ll. b) an amount has been allocated to policy-holders of that nia za category in respect of a previously established surplus n Ta in which policy-holders of that category were eligible t o f n to participate, e rnm the insurer shall not by virtue of section 86(2) transfer or ov e otherwise apply assets representing any part of the surplus 5 G 02 unless, the insurer has either allocated to policy-holders of ©2 that category in respect of that surplus an amount not less than ninety percent. 289 THE INSURANCE ACT [CAP. 394 R.E. 2023] (2) Notwithstanding subsection (1), the insurer shall, by virtue of section 86(2) transfer or otherwise apply asset representing any part of the surplus if, the insurer has- (a) served to the Commissioner a written notice stating . that it proposes to make no allocation or an allocation OAG of an amount, specifying in it which is smaller than of n ninety percent; and io iss (b) published a statement approved by the Commissieormp ner in the Gazette and that a period of not less tohua t n two months has elapsed from the date or the lasitth w date on d which the company has published the stbaut teement. (3) The provisions of subsection (1) shall tri d isnot authorise the application for purposes other than those more d ntioned in section 91(l), of assets representing any part ofc edu the surplus which the insurer has decided to carry forwaepr rdo unappropriated and for the purpose of section 91(2), th bee ramount of any surplus shall be treated as reduced by any mp aayrt of it which the company has decided to carry forward o b aosk aforesaid. (4) For the purpose t ho isf this section- (a) “established f r t osurplus” means an excess of assets represent a oi np g the whole or a particular part of the life insuraedn . cNe fund or funds maintained by the insurer in sreer vspect of its long term business over the liabilities re htso r a particular part of the liabilities, of the company ig ll r attributable to that business as shown by an investigation A ia. to which section 89 applies; an nz (b) an amount is allocated to policy-holders where- a of T (i) bonus payments are made to them; or nt e (ii) reversionary bonuses are declared in their favour rnme or a reduction is made in the premium payable v G o by them, and the amount of the allocation is, in 25 20 a case within paragraph (a), (b) and (c) of this © subsection, the amount of the payment and, in a case within subparagraph (b), the amount of the liabilities assumed by the insurer in consequence of the declaration or reduction; 290 THE INSURANCE ACT [CAP. 394 R.E. 2023] (c) the amount of any bonus payments made in anticipation of an established surplus shall be treated as an amount allocated in respect of the next established surplus in respect of which amount is allocated to eligible policy- . holders generally, and for the purposes of subsection OAG (2), the amount of any surplus in respect of which that n o f allocation is made shall be treated as increased by thseiois amount of that payment; and pe rm (d) policy-holders under subsection (3) shall be toau tk en to be eligible to participate in an established wsi tuh rplus in d any case where they would be eligible te b uto participate in a later established surplus represe ri dins tting it if it were carried forward unappropriated. or d (5) This section shall not apply dtuo c elong term insurance business of the insurer under whi ro ecph policy-holders purchase investment units in an investme bnet r unit policy. aym Investment unit 95.–(1) Other than as app oor koved by the Commissioner under policies the provisions of sectio b th nis 90(3)(b)- (a) all investm f ret no t units purchased and all assets and income boe pl aonging to them shall be held solely to the benefidt . o Nf the policy-holder; and (b) nos eirn vesurer or other person may levy or charge any tsc ro emmission or fee upon a policy-holder participating gh l ri in an investment unit policy or upon the relevant life . A l ia insurance fund for the purchase, administration or sale za n of any investment units. an f T (2) An alteration to the value of any holding of a unit or t o en units, or other beneficial interest, shall be known as the m ern “adjusted unit value”. Gov 25 0 Life insurance of 96.–(1) A minor or a parent or the guardian of a minor may ©2 minors effect a life insurance and pay the premiums due under the policy with money lawfully at the disposal of the minor, his parent or guardian: Provided that, 291 THE INSURANCE ACT [CAP. 394 R.E. 2023] (a) no benefit shall be paid other than as a result of death of the minor, parent or a guardian if the minor has not attained eighteen years of age; (b) the total sums payable against all life insurance policies . outstanding at that time of the life of a minor who OAG dies before he attains the age of eighteen years shall n o f not exceed one million or the sum of the total of tih io sse premium paid under that policy, whichever is greeramp ter, and there are more policies than one outstanoud t ing at that time where a contribution shall be due a wgiathinst each d policy to make up the total sum of one m t buil elion shillings or any greater sum as the case may bdeis tirni proportion to the sum for which the policy is effde oc r ted; (c) a minor who has attained the a c dgue e of eighteen years may without the consent of his ep raorent or guardian effect a life policy upon his own blei fre and shall be as competent in all respects to be ay m policy owner and to have and exercise all the p ok boowers as if he were of an adult age, except that he sth isall not while he is still a minor, pledge or cede the rtp oo f licy without the written consent of his parent oro gp auardian. (2) Notwith. Ned standing the provisions of subsection (1), an insurer shsaelrl v not pay any sum on the death of a child before he e attainsh tst hr e age of eighteen years, except upon production of a certlli rfii gcate of death issued by the authority responsible for the r A iae. gistration of deaths. n nz a (3) The Commissioner may, by notice in writing to each of Ta insurer, direct procedure to be undertaken in the processing of nt e claims against insurers on the death of minors. rnm oVv e G alue of certain 97. Where an asset was acquired wholly or partly from money 25 assets 0 paid by an insurer under a life policy and the proceeds, or ©2 realisation of that asset exceeds that amount, a reference in this part to the proceeds on realisation or to the value of that asset shall be construed as a reference to that amount only and not any sum in excess of it. 292 THE INSURANCE ACT [CAP. 394 R.E. 2023] Life policy 98.–(1) For the purpose of Part IV of the Law of Marriage Act, effected by married persons the following shall be considered to be the respective property Cap. 29 of a wife or husband: (a) a life policy effected prior to marriage; . (b) any interest in a life policy acquired prior to marriage; G OA (c) any moneys due or paid prior to marriage in respect of of n life policy or any interest in a life policy acquired priiosr io s to marriage in respect of the disposal of any interpees rmt in a life policy; and ou t (d) any assets acquired prior to marriage with mt w iohney as if d the policy, interest, moneys or assets wbeu tree effected or paid or acquired or became due duridnisg tri marriage. (2) Where, during the subsistence o r df o a marriage, either spouse gives, by way of gift or otherwi e dus ce, any interest in a life policy to the other, there shall be a reep rbouttable presumption that the property belongs absolutely bteo r the donee. may Life policy on 99.–(1) Where a life pol k oiocy effected by a person, whether own life and protection married or not, on his o b hwis n life insured for three years or longer t afforded during from the date of thert op f ayment of the first premium- life (a) is attacheod p ain execution of a judgment or order of any court ad.t N the instance of a creditor of that person; or (b) beceorvs me es part of that person’s estate in insolvency and o rfets the joint estate of the insolvent and surviving spouse rig h l during the lifetime of that person, l tiah. e A proceeds or realisation of the policy shall be protected n za against that person’s creditors and against any claim in n f T a connection with that attachment or insolvency. t o en (2) The protection afforded in respect of a life policy, shall- rnme (a) extend to the proceeds on realisation of the policy Gov which does not exceed an amount of two million five 250 hundred thousand shillings; and ©2 (b) subject to the provisions of paragraph (a), extend if the policy is pledged, to the proceeds on realisation of the policy which exceeds the amount of the liability, the payment of which the pledge secures, but no further. 293 THE INSURANCE ACT [CAP. 394 R.E. 2023] (3) During a period of five years as from the date upon which any moneys become due or have been paid by the insurer under a life policy under subsection (1) or assets acquired with those moneys or other moneys- . (a) are attached in execution of a judgment or order of any G OA court at the instance of a creditor or a person by whom f n o the policy was effected; or siois (b) become part of the estate in the insolvency of the peermp son by whom the policy was effected and of the joionut t estate of the insolvent and the surviving spouse, th d w i the money due or paid under the policy or thuet eproceeds on realisation of assets shall, to the extent specifister ib di d in subsection (4), be protected against that person’s crediotro d rs and against any claim in connection with the attachmecnedu t or the insolvency. (4) The protection afforded in reep rsopect of moneys or assets of a person shall- e r b (a) extend to those mone ymsa yor to the proceeds on realisation of those assets in ok bso far as those moneys and proceeds together with- s th i (i) all othertr o m f oneys due or paid to that person under life p a o op lices under subsection (1); (ii) tehd .e N value of all other existing assets of that person se rvacquired with money paid under life policies re hts under subsection (1) or with those moneys and g ll r i other moneys; and . Aia (iii) the realisable value of all life polices under n nz a subsection (1) of which that person is the owner Ta of which exceed two million five hundred thousand en t shillings; m ern (b) subject to the provisions of paragraph (a), extend in the v G o case of an asset which is pledged or mortgaged, to so 25 20 much of the proceeds on realisation of the assets which © exceeds the amount of the liability the payment of which the pledge or mortgage secures, but no further; and 294 THE INSURANCE ACT [CAP. 394 R.E. 2023] (c) not extend to any moneys due or paid under a life policy under subsection (1) or surrender of the policy or to any assets acquired with those moneys. (5) For the purpose of this section- . (a) a life policy which an insurer issues in exchange for or G OA in consideration of the surrender of another life policy of n under which the insurer was previously liable shall bseiois regarded as having been effected on the date on wehrmp ich the surrendered policy was issued if the insurer t orueceived no payment other than the value of the s uwirthrendered d policy as a consideration for the new poluitb cey; and (b) a life policy which an insurer issued duisn trider this section shall be regarded as having beend eo rff ected on the date on which the old life policy ford uw cehich it was substituted was issued. pro e r e b Life policy on 100.–(1) Where- may own life and protection (a) a beneficiary has ooon k the death of the policy-holder a afforded on death claim- is b th (i) under art ol fi fe policy; or (ii) to moo pn a eys or assets in respect of which protection isd .a Nfforded under section 102; and (b) thse e e rpv olicy moneys or assets- ( ir)ets are attached in execution of a judgment or order h l ri g of any court at the instance of a creditor of the Al ia. deceased owner; or n za (ii) become part of the deceased policy-holder estate an f T in insolvency and of the joint estate of the deceased t o en insolvent and the surviving spouse, ern m the beneficiary shall in respect of this claim enjoy the ov G protection afforded under section 99. 5 02 (2) For the purpose of this section “beneficiary” means- ©2 (a) the surviving spouse of a policy-holder; (b) a dependant under the will of a policy-holder; (c) a dependant by right of succession on intestate; or 295 THE INSURANCE ACT [CAP. 394 R.E. 2023] (d) a dependant under or by virtue of an order made in accordance with the provisions of any enactment in Tanzania. . Protection 101.–(1) Where- G afforded in A respect of life (a) before or during marriage a man effects or cedes for the of O policy insuring benefit of his wife or his wife and children, includingio ns spouse or s mi children children to be born to him and wife or any of themer; (b) before or during marriage, a woman effects or coe p utd es for the benefit of her husband; or ith w (c) a person effects or cedes for the benefitsut eo df his or her children, including children to be borsntri ibto him or her, a life policy on his or her life or his or he d orr spouse, the policy or moneys due or paid under it by tuhcee d insurer or any asset acquired with those moneys shall noprto, d subject to the provisions of this section and in the case of rebe a policy which is ceded, to the terms of the cession- may (i) be liable to beo ao kt tached in execution of a judgment or order ohfi sa bny court at the instance of a creditor t of the p f rt eorson by whom the policy was effected or cedeod p a; or (ii) fod.r Nm part of the estate in insolvency of the person rve se by whom the policy was effected or ceded and of rets the joint estate of the insolvent and the surviving rig h l spouse. l a. A i (2) A benefit conferred or purported to be conferred upon n za a spouse or child under a life policy under subsection (l) or an f T by virtue of the effection or cession of a life policy under o en t that subsection shall, notwithstanding any agreement to the ern m contrary between the insurer and the person by whom the ov G policy was effected or ceded but subject, in the case of policy 02 5 which is effected or ceded to the terms of the effection or ©2 cession, be enforceable against the insurer liable under the policy to a suit of the spouse or child or the legal representative of that spouse or child notwithstanding the spouse or child has not accepted the benefit and is not a party to the contract of insurance. 296 THE INSURANCE ACT [CAP. 394 R.E. 2023] (3) A life policy shall not be treated having been effected for title benefit of the spouse and additionally or alternatively the children, including unborn children, or any of them, unless at the time of its issue the policy expressed so or it was effected or . ceded for their benefit during a period of not less than twelve OAG months prior to insurer being declared insolvent. f ion o ss Protection 102.–(1) Where, before or during marriage a man or a womi rman afforded in e respect of life effects or cedes the policy, for the benefit of his or herou s t pp ouse policy insuring on the life of either the policy- ith spouse w (a) is attached in execution of a judgment oufte dany court at the instance of creditor; or ist rib (b) becomes part of an estate in insolv e d orn cy, the proceeds on realisation of the policcedu y shall, to the extent specified in section 98(2), be protepcrot ded against creditors and against any claim in connection rwebe ith the attachment or the insolvency. y ma (2) The provisions of s k oeoctions 100 and 99(2) and (3) shall apply mutatis mutandisi st bh o a life policy or moneys due or paid t by the insurer or artn oy f assets acquired with those moneys or with mixture of oth p aose moneys and other moneys. N d. Selection of 103. Whereer-v e life policies in respect of which (a) st wr eso or more life policies or assets in respect of which t protection is h rig protection is afforded by the provisions of section afforded . A ll 99, being the property of one person are attached in nia nz a execution of a judgment or order of any court at the Ta instance of a creditor; or ofnt (b) the owner of two or more life policies or assets in e rnm respect of which protection is afforded, is adjudged veo or otherwise declared insolvent and part only of the G 02 5 aggregate realisable value of the policies or assets is ©2 protected, the decree-holder creditor or the trustee of the estate in insolvency as the case may be, shall determine which policy or policies or other assets shall be realised wholly or in part 297 THE INSURANCE ACT [CAP. 394 R.E. 2023] in order to make available to him so much of the aggregate realisable value as is not protected. Partial realisation 104.–(1) A decree holder on the life policy or the trustee of his and partial conversion of life estate in insolvency who is entitled to a part of the realisable . AG policies value of the policy may, if he is in possession of the conversion f O o of policy, deliver it to the insurer who is liable under the polic io ssy n for the purpose of the payment to him of the sum to whichm ir he is entitled. t p e ou (2) Where a decree holder or trustee is not in po ith wssession of the life policy to which the provisions of subsecuttieo dn (1) apply, the owner or any other person in possession osftr ib i the policy shall, at the request of the decree holder or trustre d o e, deliver it to the insurer who is liable under the policyu, cfeo dr the purpose of the payment to the decree holder or trurosdp tee of the sum to which he is entitled. re be (3) On receipt for a lifem pyo a licy delivered to him under subsection (1) or (2) the inosku o rer shall- (a) at the request ofh its hbe decree holder or trustee referred to t in subsectiorn f t o (1) pay to him a sum equal to the part of the realisa pbao le value of the policy to which he is entitled; and d. N (b) at stehr vee request of the owner of the policy, issue to him re tsa new policy of the same class but for a sum insured ighl r equal to the difference between- Al ia. (i) the full sum insured under the old policy including za n any bonus which may have accrued in connection n f T a with it; and t o en (ii) an amount which bears the same ratio to the full ern m sum insured under the old policy including any ov G bonus as the amount paid by the insurer to the 250 decree holder or trustee referred to in subsection ©2 (1) bears to the full realisable value for the old policy. 298 THE INSURANCE ACT [CAP. 394 R.E. 2023] (4) Where any insurer has made the payment and issued a new life policy, as provided under in subsection (3), the old life policy shall lapse. Provisions in 105. Where a person- G. case of premium A life policy ceded (a) has effected or ceded a life policy for the benefit of his O of or trust policy spouse and additionally or alternatively, child includinsgio n cannot be s maintained unborn children, or any of them; or mi er (b) holds a life policy in trust for any other perosuo t np and is obliged to pay the premium on the policyi,t h w is or has been unable to pay the premiums, thautt e dperson may with the consent of each person who htraibis s an interest or if that person is a minor, with the c d oor nsent of his parent or guardian or the High Court ed u,c agree with the insurer liable under the policy to- rodp (i) exchange the policbye rfeor a paid-up life policy of a value calculatmedy a in accordance with the table furnished to otk o he Commissioner under section 85 in the csa bhi se of normal lives and in any other t case carlcou f t lated by reference to the said table and appr a oo pved by an actuary, payable at the time and in th.e Nd manner stipulated in the original policy to the ervs pe erson entitled to the sum insured by the original e hts r policy; l ri g (ii) where the policy so permits, borrow from the A l ia. insurer upon the security of the policy any sums za n which may be necessary to keep the policy in force n f T a or to revive it; or t o en (iii) apply any bonus which may have accrued in ern m connection with the policy to a temporary or ov G permanent reduction of premium or to the 02 5 payment of any premiums which have fallen due. ©2 Life policy ceded 106.–(1) This Part shall not be construed as derogating from or premium paid with intent to the powers of any court to set aside under the law relating to benefit someone insolvency any cession of a life policy made with intent to at expense of creditor benefit someone at the expense of creditor. 299 THE INSURANCE ACT [CAP. 394 R.E. 2023] (2) Where a premium upon a life policy was paid with intent to benefit a person at the expense of a creditor of the person making the payment, the court may order the owner of the policy to pay a sum equal to the aggregate of all premium . so paid, with interest at a prescribed rate per annum on the OAG amount of each premium so paid from the date of its payment, of n to the person to whose detriment the premium was to ibsse io paid or if the person has been adjudged or otherwise decelarmp red insolvent to the trustee of his estate insolvency. ut o (3) An order for payment of a sum of money m wai thde under d subsection (2) shall have the effect of pledging te b uthe life policy referred to in that subsection to the persodin tr is entitled to the payment as security for the payment andd uo rn til the payment is made, that person shall be entitled to dpuo cesses the policy. pro Power to pay into 107.–(1) An insurer may, subjec r bet t eo any rules of court in that court behalf, pay into court any mmo ayneys payable by the insurer in respect of a policy for whoioc k h, in the opinion of the Board of Directors of the insurehri,s nb o sufficient discharge can otherwise t be obtained. rt o f (2) The receipo tp aby the court of the moneys shall be a good and valid disch. Nd arge to the insurer for moneys so paid in, and the money e sesr v shall subject to rules of the court, be dealt with accordi re tsn g to the order of the court. rig h l No reduction in 10 l . A8. Where a claim arising under a policy is paid, no deductions respect of other nia life policies za shall, except with the consent in writing of the claimant be an T made on account of premiums or debts due to the insurer ofnt under any other policy. e ern m oPvroof of age 109.–(1) A form of proposal shall be framed so as to require a G 25 person making a proposal for a life insurance policy to specify 0 ©2 the place and date of birth of the person whose life is proposed to be insured by giving particulars to the best of his knowledge and belief. (2) Where an insurer issues a life policy which provides that proof of age of the life insured, is a condition precedent 300 THE INSURANCE ACT [CAP. 394 R.E. 2023] to the payment of the sum insured, the insurer shall, unless the age of the life insured has already been admitted by him, issue with the policy a printed notice stating that proof of age of life insured may be required prior to the payment of the sum . insured. G OA (3) Where an insurer declines to accept the proof of age n o f tendered in respect of life insurance policy whether issued osniois or after the coming into force of this Act, the policy-hpoe rlmder may apply to the Commissioner for an order directuitn o g the insurer to accept the proof rendered and if the Comimth w issioner d after giving the insurer reasonable opportunity bouf te being heard, makes any order in writing to the applicandt i is tar nd the insurer, that order shall be binding on the insurerd.o r (4) The preceding provisions of thi c dsu s eection shall not apply to any life insurance policy issued bpere foore the coming into force of this Act or to any paid-up pol ibcey r or certified copy of a policy issued on or after the comin gm aiynto force of this Act, where the life insurance policy issuboe odk replaces a life insurance policy issued before the com ithn isg into force of this Act. (5) Where the p f ar rt oovision of subsection (4) does not apply, the provision of ot hp is subsection shall have effect where- (a) a claiemd . Nmade for a benefit under life policy which has beesenr v insured for a period of three years from the date re htsof the payment of the first premium; ( i llb r ) g the age or date of birth of the insured has not been a. A i admitted by the insurer liable under the policy; and an nz (c) the person claiming the benefit shows that, owing to Ta of circumstances beyond the control and through no en t default either of himself or of the person by whom the ern m policy was effected, there was at no time after the date Gov of the payment of the first premium under the policy, 25 20 either in existence or available, any documentary © evidence affording reasonable proof of the age or date of birth of the insured, any written statement made in the proposal or application for the policy as to the age or date of birth of the insured shall be 301 THE INSURANCE ACT [CAP. 394 R.E. 2023] accepted for the purposes of the claim as the correct age or date of birth of the insured unless the contrary is proved by records of a medical examination of the insured, made at the request of the insurer, within the period of three years or in . any other manner. OAG of Age incorrectly 110.–(1) A life insurance policy shall not be avoided by reasosnio n stated s of mis-statement of the age of the life insured. i erm (2) Without prejudice to the provisions of subsectiot pou n (1), where- ith w (a) the true age is proved to be greater than utthe dat on which the policy was based, the insurer misatry ib vary the sum insured by, and the bonuses, if any, aolr ldotted to the policy, so that, as varied, they bear theu scea dme proportion to the sum insured by, and the bonpuros des, if any, allotted to the policy before variation asbe t rhee amount of the premiums that have been payablmea uy nder the policy as issued bears to the amount of otoh k e premiums that would become payable if the posli bhi cy had been based on the true age; or t (b) the true ager i os f t proved to be less than that on which the policy waos p abased, the insurer shall either- (i) va.r Nd y the sum insured by, and the bonuses, if ervs aeny, allotted to the policy before variation as the ts re amount of the premiums that have become payable l ri gh under the policy as issued bears to the amount of l a. A i the premiums that would have become payable if anz the policy had been based on the true age; or Tan f (ii) reduce, as from the date of issue of the policy, the t o en premium payable to the amount that would have ern m been payable if the policy had been based on the Gov true age and repay to the policy owner the amount 02 5 of overpayments of premiums less any amount ©2 that has been paid as the cash value of bonuses in excess of the cash value that would have been paid if the policy had been based on the true age. (3) Notwithstanding the provisions of subsections (1) and (2), where the correct age is found to be beyond the limits 302 THE INSURANCE ACT [CAP. 394 R.E. 2023] within which the insurer, according to his published prospectus issued, the type of policies in question, shall be void abinitio and the insurer shall refund to the insured all the premiums received on the policy after deducting the commission . payments and expenses incurred by him on the policy; but this G OA provision shall not apply to annuities and other policies where of n the insured has already received any payment under the policisys i.o (4) The provisions of section 115(4) and (5) shall paep rmply mutatis mutandis to this section. t tho u i w Suicide 111.–(1) A life policy in which it is stated thutae dt the policy shall be void in the event the insured whethie i strr bsane or insane dying by his own act or suffering capital p d our nishment within a stipulated period shall be void- ed uc (a) in respect of any period thparto dexceeds two years from the issue of the policy re b enotwithstanding any policy conditions to the conmtraa y ry; or (b) where the insured k odoie s by his own act or suffers capital punishment afthies rb the expiration of that stipulated t period or aft rt eo fr two years from the issue of the policy, whicheveor p ais sooner. (2) A life p N d.o licy in which no provision such as referred to in subsectsieor vne (1) is contained shall not be void by reason of the insu e ts rred, whether sane or insane, dying by his own act or suffe h l rriging capital punishment at any time after the issue of the p A l nia o. licy. za Military serv iTcae n 112.–(1) A life policy which states that the policy shall be ofnt void in the event of the policy-holder dying in the course of me rn or as a result of any military service which he performs under ov e the Government of Tanzania in any military action against a 5 G 02 common enemy shall be void. ©2 (2) An insurer shall not refuse to issue to any person a life policy on the grounds that he is performing or likely to perform military service in Tanzania. 303 THE INSURANCE ACT [CAP. 394 R.E. 2023] (3) This section shall apply to any life policy under which- (a) the lives of a group of persons are insured; and (b) the insurer may- (i) amend any of policy’s provisions; or . (ii) cancel the policy. G f O A o Lost or destroyed 113.–(1) Where a life policy is lost or destroyed and the losssio n life policy s or destruction is proved, the insurer of the policy, shall aetr mt ihe request of the policy holder and upon payment of prestc pou ribed fee by the policy holder to the insurer, issue to the po it wl chy holder a correct and certified copy of- tedu (a) the policy upon which shall beis tr ibinscribed any endorsement made by the insurer o onr dthe original policy after its issue; and d uc e (b) any record in the possessiporon d of the insurer of any dealings with the policy aeft rb eer its issue. (2) A certified copy of a limfea yp olicy issued under subsection (1) shall, for all purposes- ok o (a) take the place ohfi st bhe policy lost or destroyed; and t (b) be the sole ervt oi fd ence of the contract made by the policy. (3) An insur a oe rp shall maintain a Register of all copies of life policies isds. u Ned, and may allow any member of the public showing reerav e s sonable cause, access to relevant parts of the Registetsr .r e (l4 ri)g hThe Register shall contain the following: l A ia. (a) full name of the life insured; za n (b) full name of the policy-holder; Tan f (c) last known address of the policy-holder; t o en (d) date of birth or year of birth of the life insured; and ern m (e) the policy identification number. ov 25 G 0 Life policy 114.–(1) Where an insurer, by notice in writing- ©2 may include subsidiary (a) inform the Commissioner that he has issued or that he benefits intends to issue life policies which provide benefits on- (i) the total or partial permanent disability of the person whose life that policy insures; or 304 THE INSURANCE ACT [CAP. 394 R.E. 2023] (ii) the death of the person whose life that policy insures as a result of an accident or particular disease; and (b) requests the Commissioner that the policies referred to . in paragraph (a) be treated as life policies only, AG O the policy issued by the insurer on or before the date of of n commencement of this Act or after notification to tihsse io Commissioner shall, subject to the provisions of subsepce rtmion (2) be treated for the purposes of this Act as a life poloicu ty only. (2) In this section, a policy shall not be trea it twedh for the d purpose of this Act as a life policy only if thbeu t evalue of the benefits provided in subsection (1)(a) and ds i isutrbparagraphs (i) and (ii) does not exceed in the aggregate- d o r (a) a waiver of claims to any prem ce diuum under the policy in respect of the period of disapbroe ility; (b) monthly benefit, payable r b deuring the period of disability of the person whose ay m life the policy insures but not extending beyond ok b othe date of termination of the risk of the life ins uthr isa nce properly effected by the policy amounting rt oo f t two percent of the sum payable under the policyo po an the death of the person- (i) ad .l N e ump sum equal the sum payable under the se rvpolicy on the death of the person whose life that re hts policy insures; or ll r ig (ii) in the case of a deferred annuity policy, monthly . Aia benefits payable during the period of the disability n nz a of the person whose life the policy insures but Ta of not extending beyond the date as from which the nt e annuity will become payable amounting to one rnme twelfth of the annual annuity; and v G o (c) a life policy providing benefits that are described 5 20 2 in subsection (1)(a) which cannot by reason of the © provisions of subsection (2) be treated for the purposes of this Act as a life policy shall be treated as both a life policy and a personal accident or personal accident and sickness policy. 305 THE INSURANCE ACT [CAP. 394 R.E. 2023] Discrimination 115.–(1) An insurer shall not make or permit to be made any between life policies etc., discrimination in respect of the rate of premiums charged or prohibited the bonuses granted between life policies which are of the same kind and under which the persons whose lives insured . have an equal expectation of life. OAG (2) Subsection (1) shall not apply to life policies which- n o f (a) are reinsurance contracts; io iss (b) are for large sums in excess, of fifty million shi r pleli mngs or any larger sum which the Minister may presouc tr ibe at preferential rates in accordance with the curirth w ent tariff d of the insurer concerned; uteb (c) insure at preferential rates the lives odf se tmrii ployees of one employer or a combination of em d po rloyers or members of the families of the employeeuscd eor the lives of a group of persons carrying on the sepa rmo e occupation; or (d) are of a class prescribed ine b rthe regulations. (3) A director, employee o mr aaygent of an insurer or of a broker shall not pay, allow, give o ok bor offer to pay, directly or indirectly- (a) a rebate of the phirs t e miums payable on a life policy; (b) an advantagret o i fn the nature of a rebate of the premium payable oon p aa life policy; or (c) prefereed .n Ntial treatment in connection with bonus or otherrvs benefit under a life policy. e (4) hThts re provisions of subsection (3) shall not apply to grant to all nri g employee or former employee or spouse or dependent c A iah. ild on an insurer or broker of a rebate of commission on a za n n policy effected by him on his own life. f T a o (5) A person shall not knowingly receive any rebate of nt e premium advantage or preferential treatment referred to in ern m subsection (3) as an inducement to insure. ov G (6) A director, employee or agent of an insurer or of a broker 02 5 2 shall not accept any proposal or application for a life policy in © respect of which- (a) a promissory note, bill of exchange or other negotiable instrument, not being a cheque payable on the date of issue; or 306 THE INSURANCE ACT [CAP. 394 R.E. 2023] (b) an acknowledgement of debt, not being a stop order or direct debit in favour of the insurer or any person who has been given for the first year’s premium or any part of it. . (7) A person who contravenes any provision of this section AG O commits an offence and on conviction shall be liable to a fine n o f not exceeding ten times the amount for the annual premiuisms io normally payable on life policy similar to the one in resp rm t p eect of which the offence was committed. outh w i Non-forfeiture 116.–(1) A life policy, other than those defined d u tien subsection of life policies in certain cases on (5), shall not be forfeited by reason only of itshtr ieb non-payment non-payment of of any premium, in this section referred rt d o o as “the overdue premiums premium”, where- ed uc (a) not less than three years’ prpermo d iums have been paid in cash on the policy; and e r e b (b) the surrender value omfa yt he policy as calculated at the day immediately poroe kc eding that on which the overdue premium falls disu bh e exceeds the sum of the amount of t the debts owrti on f g to the insurer under, or secured by the policy, anod p a the amount of overdue premium. (2) The ins N du. rer may, until payment of the overdue premium, charge comerpv e s ound interest on it on terms not less favourable to the poltisc ry e-holder than the terms which are set out in the table furn h l riisghed to the Commissioner under section 85. l a. A i (3) The overdue premium and any interest charged on it anz under this section and unpaid shall, for the purposes of this an f T Act, be deemed to be a debt owing to the insurer under the o en t policy. m ern (4) Without affecting the generality of subsection (1), a life v G o policy on which less than three year’s premiums have been 02 5 paid in cash shall not be forfeited by reason only of the non- ©2 payment of a premium unless, on or after the day on which the premium fell due, the insurer liable under the policy serves a notice on the policy-holder stating- 307 THE INSURANCE ACT [CAP. 394 R.E. 2023] (a) the amount due or payable to the insurer at the date of the notice in respect of the policy; and (b) that the policy will be forfeited at the expiration on one month after service of the notice if a sufficient sum is . not paid to the insurer in the meantime. OAG (5) Where a premium is over due in respect of life policies n o f where premiums are payable at intervals not exceeding twsoiois months in each case to collectors sent by the insurer to rm p eeach policy owner, or to his residence or place of work- ou t (a) policy on which less than one year’s prem i wiu thms have d been paid in cash shall not be forfeited byu rteb eason only of the non-payment of any premium undilse triss the premium has remained unpaid for not less dt horan one month after it became due; ce du (b) a policy on which not lesse pt rhoan one year’s premiums have been paid in cash shea r b ll not be forfeited by reason only of the non-paymay m ent of any premium unless the premium has remaoikbo ned unpaid for not less than one month after it b s the i came due; (c) a policy on f rtw o hich not less than two year’s premiums have been p pao aid in cash shall not be forfeited by reason only of. Ned the non-payment of any premium unless the preemrvs ium has remained unpaid for not less than three tsm r e h onths after it became due; and (lld ri g) in the event of a policy on which not less than three ia. A years premiums have been paid in cash is forfeited by an nz reason of non-payment of any premium, f T a o the insurer shall, without requiring any application from t en the policy-holder, grant a paid-up policy for an amount not ern m less than that calculated in accordance with tables approved Gov under section 85; such paid-up policy shall be payable upon 02 5 2 the happening of the contingency upon which the amount © insured under the original policy would have been payable. (6) This section shall not preclude an insurer from granting to an owner of a policy of a kind referred to in this section more favourable terms than those specified. 308 THE INSURANCE ACT [CAP. 394 R.E. 2023] Paid-up policies 117.–(1) A policy-holder who desires to discontinue further premium paid-up payments on a life policy on which not less than three years’ premiums policies have been paid in cash shall, on application to the insurer, be entitled to receive, in . lieu of that policy, a paid-up policy for an amount not less than OAG that determined in accordance with the tables approved under of n section 85. io iss (2) The paid-up policy shall be payable upon the happ rm peening of the contingency of which the amount assured unoud t er the original policy would have been payable. ith d w ute Surrender of 118.–(1) The policy-holder of a life policy w ib ishtrich has been in policies force for at least three years shall, on app olri dcation, be entitled to surrender the policy and to receievduc e not less than the surrendered value of the policy lespsro dthe amount of any debt owing to the insurer under, or se e bec ur red by, the policy. (2) In the application of subys ma ection (1) to a paid-up policy which has been issued in liek oo u of another policy, the period of three years shall be cahlisc bulated from the date of issue of the t original policy. of rt (3) For the puor p aose of this section the surrendered value of a policy shall db. e N the amount calculated in accordance with the tables appr e seor vved under section 85. (4) Thre ts e Commissioner may, on application by an insurer, if in hl irsig hopinion, he thinks that the payment in cash of surrender Al v iaa. lues as required by this section would be prejudicial to the za nfinancial stability of the insurer or to the interests of the policy- n f T a holders of that insurer, suspend or vary for any period and t o en subject to any conditions which the Commissioner thinks fit, m ern the obligation of the insurer to pay those surrendered values. ov G 25 Cancellation of 0 119.–(1) A life policy issued after the commencement of this 2 life policy within © limited penalty Act may be cancelled by the policy-holder within a period of three months from the date on which the proposal form was signed, or within one month of the receipt for the policy by the owner, whichever is the later by returning the policy to the 309 THE INSURANCE ACT [CAP. 394 R.E. 2023] insurer with an objection in writing to any terms or conditions of the policy, or a statement that he does not require the policy, and the insurer shall forthwith refund any premium which has been paid in respect of the policy which shall thereupon be . canceled. OAG (2) Subject to the provision of this section, where a policy is n o f sent by registered post by an insurer to the person to whomis ist io is issued, it shall, unless the contrary is proved, be deem r peedm to have been delivered to him at the time at which it wou t olud reach him in the ordinary course of the post. ith d w (3) A policy shall be deemed to have been rebtuu terned with an objection or statement, as the case may be,d w triis here the policy and objection or statement is posted ford ot rr ansmission to the insurer by registered post. uc e d (4) The insurer shall, when deepl riovering the policy to the policy-holder, include a synop sbies r of the right of the policy- holder, under subsection (2) mto ay cancel the policy. ok bo Publication of 120.–(1) For the purphois se of this section, in the case of an bonus rates and t unit values insurer transacting l ofn rt g term business where- (a) there is eoit ph aer- (i) adn. Nestablished surplus in which long term policy- erv e s holders of any category are eligible to participate; ts re or h l ri g (ii) an adjusted unit value in which long term policy- Al ia. holder of that category benefit; and anz (b) an amount has been allocated to policy-holders of that n f T a category in respect of a previously established surplus nt o e or adjusted until value in which policy-holders of that m ern category were eligible to participate, the allocation ov made shall- 25 G 0 (i) during the currency of the policy, be known for ©2 the purpose of this section as “the reversionary bonus”; or (ii) in addition to any reversionary bonuses attaining to the policy, but only upon the death of the policy- 310 THE INSURANCE ACT [CAP. 394 R.E. 2023] holder or upon the happening of some other future event resulting in the payment of benefit under the policy, be known for the purposes of this section as “the terminal bonus”. . (2) An insurer transacting long term business who allocates OAG reversionary bonuses to policy-holders by the application of of n a factor applied to the policy sum insured shall advise tihsse io Commissioner in writing and publish in the Gazette andp ei rnm at least two daily newspapers widely circulating in Tanzaonu ti a- (a) within one month from the coming into fo wri tche of this d Act; or uteb (b) upon any alteration of the factor wdiist trhi in one month of the date of the approval by th r d eo insurer’s Board of Directors with the approval ofd tuh cee actuary, the amount and effective date of th ro eapt factor and on what basis including what continuing baseis r b policy-holders eligible to participate are benefited by i y mt. a (3) An insurer transacbtoin okg long term business who allocates reversionary bonuses tois p th olicy-holders by amending the value of any holding of f rtu onits, or other beneficial interest, under an investment uon pi at policy shall advise the Commissioner in writing and pu. Ned blish in the Gazette and in at least two daily newspapesresr vwidely circulating in Tanzania- (a) sw r e ht ithin one month in the coming into force of this Act; rig All or ia. (b) upon any amendment of the value of the unit thereafter, n nz a within two weeks of the date of the amendment or at Ta of least monthly whichever is the more frequent, nt e the value of each unit and the effective date of each revaluation rnme of the fund from which the unit value is calculated, and on Gov what basis including what continuing basis policy-holders 02 5 2 eligible to participate are benefited by it. © (4) In the event that policy holders of a single insurer holding different classes or types of policy derive different benefit levels in any bonus distribution issued to them under the terms of 311 THE INSURANCE ACT [CAP. 394 R.E. 2023] this section, the provisions of this section shall apply to each separate type of bonus so distributed. (5) For the purpose, of and in consequence of subsection (3), units may only be allocated to a life policy at the price . published immediately prior to a policy being effected and OAG any subsequent unit purchase shall be based upon the last of n published unit price at the date of purchase for the relevaisnst io type of policy. erm t p ou Advertisement 121.–(1) Where an insurer transacting long termit hbusiness and projected w benefits issues policies of a class or classes of which atned established surplus, or adjusted unit value, not being a gtruib u is aranteed sum, is distributable in whole or in part to poli coyr d-holders then, any advertisements issued by the insurer, itusc ee dmployees and agents and any projections on benefits whipcroh d may accrue to potential policy-holders in general or a p re boetential policy-holder shall be governed by the provisions omf at yh is section. (2) An insurer transactoin okg long term business who allocates reversionary bonuses tho b is policy-holders by the application of a t factor applied to thrte o fp olicy sum insured shall, when making any advertisemeon pt a or projection of benefits, use only the last published fac N dt.o r and application of reversionary bonuses as required usn e ervder the terms of section 120(2). (3) As nr e t insurer transacting long term business who allocates reverisghl r ionary bonuses to policy-holders by amending the value Al oaf. i any holding of units, or other beneficial interest, under an n za investment unit policy shall, when making any advertisement Tan f on projection of benefits- t o en (a) use only the annual average compounded interest rnme growth rate over the effective four year period of the v G o said unit produced from the mean valuation of- 02 5 (i) the unit effective as at the first day of the month ©2 in which the advertisement or projection is made and of the eleven preceding monthly unit values; and 312 THE INSURANCE ACT [CAP. 394 R.E. 2023] (ii) the unit value effective as at the first day of the month, sixty months previous to the month in which the advertisement or projection is made and of the eleven subsequent monthly unit value; . (b) use only those unit values for the purposes of paragraph G OA (a) which shall be published in accordance with section n o f 120(2); and io iss (c) include in the advertisement or projection if applipcea rmble, the basis or formula required to be approved t ou by the Commissioner under the provisions of secti th d w oin 85(3). (5) When making an advertisement or proujteeb ction under this section, an insurer shall- ri dis t (a) not include in the financial projecdt oi ro n any reference to any terminal bonus or other ce dduistribution except that mention may be made to tehpe ro existence of the possible provision; and e r b (b) prominently make mmea nytion in all advertisements and projections that tohob ek projections are not guaranteed and may vary b s tho i th upwards and downwards from that stated in the f rt aodvertisement projection. pa . N o rve d PART IX e reEsSTABLISHMENT OF OMBUDSMAN ts igh SERVICE AND TRIBUNAL ll r . A nia (a) Establishment of Ombudsman Service za Establishme n fn Tt a 122.–(1) There is established Ombudsman Service for the of Ombud soman Service nt purposes of resolving disputes arising between insurance e rnm consumers and insurance registrants’ business in Tanzania. veo (2) The Ombudsman Service shall consist of an ombudsman G 02 5 appointed by the Minister and such other employees employed ©2 by the Authority as may be required in the performance of the functions of the Ombudsman Service. 313 THE INSURANCE ACT [CAP. 394 R.E. 2023] Complaints to 123.–(1) A complainant may file a complaint against an be handled by Ombudsman insurance registrant with the Ombudsman Service provided Act No. that, the complaint shall- 13 of 2023 s. 55 (a) not involve an insurance claim in respect to any of the . following classes of insurance: AG O (i) railway rolling stock; of n (ii) aircraft; io iss (iii) ships; pe rm (iv) aircraft liability t ou (v) liability for ships; ith d w (vi) surety ship; or uteb (vii) miscellaneous and legal expense; tridis (b) contain evidence that an unsucd coe r ssful attempt has been made to resolve the compulcd aeint with the insurance registrant within the previoupre so twelve months; and (c) not be on the same subjecte m r b atter currently or previously before any third part ym adyispute resolution forum. (2) Notwithstanding s ok buobsection (1)- (a) health insuranceis th schemes may file to the Ombudsman complaints f rat ogainst a member of a health insurance scheme oor p a a health service provider; and (b) a mem. bNed er of a health insurance scheme and health servervs ice provider may file to the ombudsman applications e htsf or r review against the decision of a health insurance l ri g l scheme. . Aia Powers and za n124.–(1) The Ombudsman shall have powers to grant an award functions of Tan Ombudsmanf to the complainant for direct losses and damages suffered by t oAct No.en the complainant up to a maximum of fifteen million shillings. 13 onf m2023 s. 56 er (2) Upon receipt of the complaint, the Ombudsman shall ov G investigate the complaint or cause it to be investigated. 02 5 (3) For purposes of conducting an investigation, the ©2 Ombudsman shall have the same powers as those of the Commissioner under section 144. (4) Procedures for receiving, hearing and determining complaints by the Ombudsman shall consist of such sums of 314 THE INSURANCE ACT [CAP. 394 R.E. 2023] moneys as may be appropriated by Parliament for the funds of the Authority. (5) Notwithstanding subsection (1), the Ombudsman shall have unlimited jurisdiction to determine health insurance . related complaints from a member of a health insurance scheme OAG or a health service provider referred to it by the Authority. of n ss io Funds of 125. The expenses of and incidental to the administratiornm iof Ombudsman e Service Ombudsman shall consist of such sums of moneys as t p o umay be appropriated by Parliament for the funds of the Au twhi thority. d ute (b) Establishment of Insurance Appealiss trT ibribunal r d Establishment of 126.–(1) There shall be a Tribunal to be kndo own as the Insurance Tribunal e Act No. Appeals Tribunal. ucd 13 of 2023 s. 57 (2) The Tribunal shall be an adrhepo rco forum consisting of five persons as follows: y b e (a) three persons appoink tme ad by the Minister with adequate experience in ins ubor oance matters, provided that, one of the members fshis t all be a law officer from the Office of the Attorneyrt oGeneral; (b) two pers pa Nons appointed by the Minister in consultation with tehdv e. Minister responsible for health matters who shall be spere ersons with adequate experience in health matters, r htsprovided that, consultation with the Minister responsible g All r i for health shall only be sought where a Tribunal is nia . constituted to handle health insurance matters. za an (3) The Minister shall appoint one of the members to be the T t o f Chairman of the Tribunal. men (4) A person aggrieved by the decision of the Commissioner ve rn under this Act may, within one month from the date on which Go 5 the decision is communicated to him in writing, appeal by a 20 2 petition in writing to the Tribunal which may, uphold, reverse, © revoke or vary that decision. (5) Before deciding any appeal brought under this section, the Tribunal shall provide to the appellant an opportunity to appear before it. 315 THE INSURANCE ACT [CAP. 394 R.E. 2023] (6) Except as provided for in this section, the decision of the Tribunal on an appeal made under subsection (4) shall be transmitted in writing within two months of receipt of the petition of appeal and shall, except on a question of law, be . final and conclusive. G OA (7) A person aggrieved by a decision of the Tribunal made of n under subsection (1) may, if it involves a question of lawsiois within one month from the date on which the decisipoe rnm is communicated to him, appeal to the High Court. t ou (8) A reference in this section to a question of lawith does not include a reference to a question whether theruete d b is sufficient evidence to justify a finding of fact. ist ri d (9) The expenses of and incidental to dt ho re administration of the Tribunal shall be borne by the Auth e du cority. ro re p PARTe X y b FINANCIAL PRO a k mVISIONS RELATING TO T o sH b oE AUTHORITY f th i Funds of 127.–(1) The fund o asr tof the Authority shall consist of - Authority (a) such sumo p N s of moneys as may be appropriated by Parli d. rvaement; (b) mreos eneys derived from levies on premiums and ts gh commissions as prescribed by the Authority; and (lc ri A l ) funds or assets which may vest in or accrue to the nia . Authority from other sources by way of fees, grants or nz a a in any other way. of T t (2) The Authority may- men (a) invest in securities in which trustees may, by law, deal ernv as the Board may determine; and Go 5 (b) deposit with a bank any sums of money which are not 20 2 © immediately required for the use by the Authority. Annual estimates 128.–(1) The Board shall, before the commencement of each financial year cause to be prepared estimates of the revenue and expenditure for that year. 316 THE INSURANCE ACT [CAP. 394 R.E. 2023] (2) The annual estimates shall contain all estimated expenditure of the Authority for the financial year concerned and the Board shall approve recurrent and development expenditure. . (3) The annual estimates shall be submitted to the Minister OAG who shall cause the same to be laid before the National Assembly f n o within three months from the date of their submission. io ss erm i Books of accounts 129.–(1) The Authority shall keep proper books of acutc pounts Cap. 348 o and shall be audited in accordance with the Publwii cth Finance Act. d ute (2) Within three months from the end otrfibis each financial year, the Authority shall for the purpose o ofr aduditing submit to the Controller and Auditor-General acuccoe dunts of the Authority together with- pro d (a) a statement of financiale rb aectivities and income and expenditure during th atym financial year; and (b) a statement of assoe okts and liabilities of the Authority existing at the ehnisd b of such financial year. f t rt o o p a PART XI . N ed GENERAL PROVISIONS erv es Restriction on 130.–(h1ts) r Notwithstanding the provisions of section 86, from insurance having the le rigno insurance l ffective date of this Act, a contract of insurance shall not A interest biae. made by any person on the life or lives of any person or n nz a persons, or on any other event or events in which the person Ta of for whose use, benefit or on whose account the insurance en t made shall have no insurance interest; and the insurance so m ern made shall be null and void ab initio. ov G (2) Except in the case of life insurance policies, no sum shall 25 20 be recovered or received from insurance or insurances which © exceed the amount of value of the interest of the insured in the life or lives, or other event or events, insured by the insurance or insurances. 317 THE INSURANCE ACT [CAP. 394 R.E. 2023] (3) Where a person making a claim under an insurance or insurance policies with intent to recover from the insurer or insurers a sum greater than that permitted in subsection (2) the person so claiming commits an act of fraud or intended . fraud and that offence shall be punishable in accordance with OAG criminal laws of Tanzania. n o f siois Time limit for 13l.–(1) Every insurer shall pay claims within forty five drmays payment of claim e of the date of receipt of the executed discharge, andu t o wp here the insurer is unable to settle claims within that timt w ieh, he may apply to the Commissioner for extension of utteim d e and the Commissioner may grant an extra time of noistt rm ib ore than forty five days within which the claim shall be s oert dtled. (2) Where an insurer fails without reucaes donable cause to settle the claim within forty five days orp rwo dithin the time extended by the Commissioner that claim s rhebe all be treated as a bad faith claim against the insurer. ay m (3) For the purpose of k oo this section, “a bad faith claim” means- s b thi (a) an insurer’s rdt oe fl ay in the processing of a legitimate claim beyond ao tpi ame period consistent with normal industry practic.e Nd ; or (b) an rve s iensurer’s delay in making payment to a claim beyond e tsf or rty five days of the date of receipt of the executed h l ri g discharge without consent of the Commissioner. l a. A i (4) The provisions of section 167 shall apply to an insurer za nwho engages in a bad faith claim. an f T Fatal Accnitd oent 132. Notwithstanding the provisions of any other written e rnm law, in assessing damages in any action, whether commenced ov e before or after the commencement of this Act, there shall not G 02 5 be taken into account any sum paid or payable on the death of ©2 the deceased under any contract of insurance whether effected before or after the commencement of this Act- (a) voluntarily by the deceased person; and (b) in respect of which the premiums were paid by or for the deceased from his personal resources. 318 THE INSURANCE ACT [CAP. 394 R.E. 2023] Insurance held by 133.–(1) Insurance cover effected by a Tanzanian resident or Tanzanian insurer Acts Nos. a Tanzanian resident company of any class or classes shall be 7 of 2017 s. 40 placed with a Tanzanian insurer. 4 of 2021 s. 13 (2) Where a class or classes of insurance required to be . placed with a Tanzanian insurer in terms of subsection (1) is AG O or are not available to a person seeking insurance cover that n o f person may, through a resident insurer and with prior writt io iessn approval of the Commissioner, place that insurance cover rm pe with a non -Tanzanian insurer. ou t (3) For purposes of subsections (1) and (2), grounitdh w , marine d and air cargo insurance covers for Tanzanian imutb peorts shall be effected by a Tanzanian insurer. str i di (4) Where there is an agreement that opr d rovides for special arrangement relating to the implemen c duta etion of this provision, and the said arrangement has been r ep a opproved by the Cabinet, the application of the provisiones r b of subsection (3) shall not prejudice the implementatio nm aoy f such agreement. (5) This section shall nookbo t affect the control exercisable by the Bank of Tanzania. his t rt o f Mandatory 134.–(1) Subject ptao o the provisions of this Act and any other insurance Act No. written law, a p. eNd rson shall not import goods or operate a public e 5 of 2022 s. 75 market, coemrvs mercial building, marine vessel, ferry or pantoon withou re tts obtaining an insurance cover. ( g l2 ri) hThe Minister shall, by regulations, prescribe commercial Al biau. ildings, public markets and imported goods requiring anz mandatory insurance. an f T [s. 133A] o en t Reprenamled 135. [Repealed by Act No. 7 of 2017 s. 41.] veo [s. 134] 25 G ©20 Unlimited 136. An insurer shall not on or after a date prescribed by the indemnities Minister, issue or renew a policy of insurance under which the insurer undertakes a liability the amount or a maximum 319 THE INSURANCE ACT [CAP. 394 R.E. 2023] amount of which is uncertain at the time when the contract of insurance is entered into or renewed. [s. 135] . Commission only 137. A company or individual not a party to any contract of G to brokers and A agents insurance, except an agent or broker registered under this Act O of or only to an employee of an insurer, shall not be paid an ion ssy commission or other payment by any Tanzanian insurer, aegrme int or broker for effecting or renewing any policy of insura p oun t ce. ith d w [s. 136] te Repealed 138. [Repealed by Act No. 7 of 2017 s. 42.] ibu str or di [s. 137] d ce Days of grace 139.–(1) An insurer shall not extend riond usurance cover in respect period of any policy of insurance effect p ered in the course of general business beyond a grace periaoyd b eof fifteen days commencing on the day following the lka smt day of the previous insurance o period unless specified si nb ostructions have been given prior to i or during the grace poef trhiod to renew that insurance. (2) Subject to psau rtb section (1), where instructions have not been given prio o . Nr to or during the grace period, the policy cover shall be treatedrv d as having lapsed on the last day of the previous insuranc se ts re period. l ri gh [s. 138] Al Insurance 1ia4. n 0.–(1) The Authority shall prescribe the code of ethics broker’s code of za conduct an and practice to be observed by insurers, brokers, agents, f T t o loss assessors and adjustors in the conduct of their business en pursuant to this Act. ern m v (2) The principal officer of each insurer, broker, agent, o 5 G loss assessor and adjustor shall ensure that all directors and 2 ©20 employees are aware of and comply with the provisions of the code of the ethics and practice. (3) A copy of the code of ethics and practice described in subsection (1) shall be conspicuously displayed in areas of 320 THE INSURANCE ACT [CAP. 394 R.E. 2023] access to the public at each office of the insurer, broker, agent, loss assessor and adjustor. [s. 139] Exemption 141. The Minister may, upon recommendation of the Authority AG. on the advice of the Board, if he considers it to be in the public O of interest, by order published in the Gazette, exempt any insure n ssri, o broker or agent from all or any of the provisions of the i ermAct subject to any terms and conditions which he may thion p utk fit to impose. ith d w ute [s. 140] ib str Extension of time 142.–(1) Where insurer, broker or agent o drior an applicant for registration under this Act is requiredce do r entitled to do or refrain from doing anything within a u ro dspecified period of time, the Commissioner may at or, one ar enp application in writing by that insurer, broker, agent or aayp bplicant, extend the time for a period of not more than sixok m m onths. (2) The provisions of th biois s section shall apply notwithstanding the fact that the spec oiffi thed period of time may have expired. pa rt [s. 141] . N o Routine 143.–(1) Thee drv Commissioner may, for the purpose of ensuring inspection complia nrec see with the provisions of this Act and after issuance of thrigehe ts days notice, conduct on site inspection of any person re. gAills rtered under this Act. an ia (2) All expenses of inspection carried out pursuant to nz Ta subsection (1) shall be borne by the Authority. t o f [s. 142] men n P r vreoduction of 144.–(1) The Commissioner may, for the purpose of this o Gdocuments and 5 information Act, require the production of any document or information 02 ©2 Act No. relating to- 2 of 2022 s. 30 Cap. 423 (a) the insurance business of any insurer, broker or agent or applicant for registration, as the case may be; or (b) countering terrorist financing matters pursuant to the Anti-Money Laundering Act. 321 THE INSURANCE ACT [CAP. 394 R.E. 2023] (2) The Commissioner may institute investigation into the activities of any insurer, broker, agent or applicant for registration and extend the investigation to other persons who may have related information including company employees, . directors, owners, affiliated companies, the auditor or the OAG appointed actuary of the insurer, broker or agent. of (3) The Commissioner or other person appointed by himsio n is to investigate the affairs of any insurer, broker, agent poe rm an applicant for registration may, wherever necessary, emoup t loy an auditor, actuary or other person to assist in the inve wsi tthigation. d (4) Where any document or information inuteb writing and produced under this section is not writtdesn tri i in English or Kiswahili language it shall be accompad no ri ed by an English or Kiswahili translation unless the e d uC c ommissioner directs otherwise. proe (5) Where the insurer, brok ber r, agent or an applicant for registration contravenes the ay m provisions of this Act, such insurer, broker, agent orb o oakn applicant for registration shall settle all expenses of, a is thnd incidental to, an investigation under this section. f art o (6) Subject too s pubsection (5), where a person fails to comply with the proev N di.s ions of this subsection within a period of one month aft rv ser the Commissioner made a demand to him, the e expenses srht incurred shall constitute a civil debt recoverable sumll rmi g arily by the Commissioner. A ia. [s. 143] za n n Inspection off T a 145.–(1) A policy-holder may, on application during normal balance snht e oet by policy-heolder working hours, inspect the books of accounts of any insurer ern m and shall be entitled to receive copies of them on payment of Gov fees prescribed by the insurer. 250 (2) An insured may, on application during normal working ©2 hours, inspect and take a copy of the latest audited accounts of any broker who has an agency agreement with that insurer. (3) Without prejudice to subsection (2), an insurer shall not divulge any information so taken to any person or body 322 THE INSURANCE ACT [CAP. 394 R.E. 2023] of persons and shall take all action which may be necessary to ensure the confidentiality of that information. [s. 144] Restriction on use 146. A person other than a registered insurer broker, G. of words A insurance agent who, uses the words “assurance”, “broker”, O of “consultant”, “guarantee”, “indemnity”, “insurance”, “insures”is ,o n “insurer” “underwriters”, “underwriting” or any combina i ertmion or derivative of them as part of the business name, styleu to p o r title of person, commits an offence. ith w ute d [s. 145] ib str No advertisement 147.–(1) A person shall not advertise s di oer rvices requiring a before registration licence under this Act unless that perso d cne has been issued with a licence to provide that service. rod u (2) A person, acting in co ep en rtravention of this section, commits an offence and on cony ba viction shall be 1iable to a fine not exceeding one milliono ks h millings or to imprisonment for a term not exceeding three b ois months, or to both. f th o [s. 146] pa rt Service of process 148.–(1) Servi. cNe o of process in any legal proceedings against an insurer d rrvegistered under this Act may be effected at the principarle os e ffice of the insurer in Tanzania. (2 ts i)g hWhere an insurer has no principal office in Tanzania or hasl l cr. A eased to exist, process in any legal proceedings against ant iahe insurer may be served at the office of the Commissioner, an z T and service upon then Commissioner shall, in that case, be of t deemed to be service upon the insurer. men n [s. 147] er ov 5 GEnforcement of 149.–(1) The holder of a policy issued by a Tanzanian insurer 20 2 rights of policy- © holders shall, notwithstanding any contrary provision in the policy or in any agreement relating to the policy, be entitled to enforce his right under the policy against the insurer liable under the policy in any court of law in Tanzania. 323 THE INSURANCE ACT [CAP. 394 R.E. 2023] (2) Notwithstanding the provisions of subsection (1), a policy issued by a Tanzanian insurer may provide that the amount of any liability under a policy shall be determined in Cap. 15 accordance with the provisions of the Arbitration Act. . [s. 148] AG of O Commissioner’s 150.–(1) The Commissioner may require any person, not beinssgi o n right of inspection of a person registered under the provisions of this Act, whoemrm ihe documents suspects is carrying on any class of insurance businesust pas an insurer, broker or agent to produce any documentiath o w tion and information which the Commissioner thinks nute dcessary and that person shall comply with the requiremtreibis nts within the stipulated time. d or (2) The Commissioner may instituut d cee an investigation into the activities of any person, not beingr oadp person registered under the provisions of this Act, whom h rebe e suspects to be carrying on any class of insurance businemsasy a s an insurer, broker or agent. (3) Failure to provide k ooan information or documentation shall constitute an offehnisc be rendering the person failing to do t so liable on convictri f to on to a fine not exceeding two million five hundred thousan dpao shillings or to imprisonment for a term not exceeding oned. y Near, or to both. (4) Wh rve seere any document or information in writing and productes dr e under this section is not in English or Kiswahili langl u h rigage, it shall be accompanied by an English or Kiswahili l tiar.a Anslation unless the Commissioner directs otherwise. anz (5) Where it appears from the information produced in an f T terms of subsection (1) or an investigation conducted in terms t o en of subsection (2) that the person is carrying on the business ern m of an insurer, broker or agent without being registered, Gov the Commissioner shall require in writing the person to 02 5 immediately cease operations and proceed against him in ©2 accordance with the provisions of section 161 and 166. [s. 149] 324 THE INSURANCE ACT [CAP. 394 R.E. 2023] Commission of 151. For the purpose of an investigation made under this Act, inquiry Cap. 32 the Commissioner shall be deemed to be a Commissioner under the Commissions of Inquiry Act. [s. 150] . AG Copies where 152.–(1) For the purpose of sections 144 and 150 where- f Oo documents on produced to (a) an original document is produced to the Commissione i iss r, Commissioner that original document shall be accompanied bye rtmwo copies duly certified as true copies for retention p ou t by the Commissioner, unless he dispenses with theit h w need for production of the copies, or any copy; orute d (b) a copy is the only document r ist pibroduced, the Commissioner may require pro odr udction of further evidence to account for the a e ubcs dence of the original, and if he is satisfied by the perov didence, two copies duly certified shall be retaine e bde rby him unless he dispenses with their production m.a y (2) For the purpose oof o kthis section, a document shall be deemed to be duly signse dbhi or certified if it is signed on behalf t of the person beingo f rt investigated by the principal officer in Tanzania where toh pe a person investigated upon is an insurer, or is signed by a pe N dr. son approved in writing by the Commissioner. erv e s [s. 151] s r e Inspection 153. t l r –ig(h1) The Commissioner may permit any person on of returns to l Commissioner pa. Ayment of the prescribed fee to inspect, make copies or obtain za nciaertified copies of any document submitted to him from a- n Ta (a) Tanzanian registered insurer in accordance with t o f n section 40 and of any additional declarations required e rnm by regulation issued under section 36(2); and ov e (b) Tanzanian registered insurer or broker in accordance 25 G with section 40 and of any additional declarations ©20 required by regulation issued under section 73(2). (2) Fee shall not be paid to the Commissioner for information supplied by him to the principal officer in Tanzania of a registered insurer or broker. [s. 152] 325 THE INSURANCE ACT [CAP. 394 R.E. 2023] Insolvency and 154.–(1) This section shall only apply to an insurer registered winding up under this Act and to any person found, by the Commissioner in accordance with section 150 to be a person carrying on insurance business in Tanzania without being registered to do so. AG. O (2) Notwithstanding anything to the contrary in the f n o Companies Act, an insurer transacting long term businesssiois Cap. 212 shall not be wound up voluntarily. ermp (3) Where a petition for the winding up of an inosu tu rer is presented by a person other than the Commissio niethw r, a copy d of the petition shall be served on the Commissuiteb oner and the Commissioner shall be entitled to be heard doisn tr ithe petition. (4) For the purpose of determining ind soo r lvency in terms of Cap. 212 the Companies Act, an insurer shall dbue ce deemed to be unable to pay its debts if at any time the rperoe quirement to maintain a minimum solvency in terms of sbecr tion 20 are not observed by the insurer. y m a (5) The Commissionebr k o omay, unless the insurer is already being wound up by t hth ies court, present an application to the Cap. 212 court for the windirnt og f up of an insurer in accordance with the Companies Act oo np a the grounds that- (a) the preod .v Nisions of section 88 demands Cap. 212 (b) the rv se insurer is unable to pay its debts within the meaning e htso rf the Companies Act; (lc ril )g the insurer, having failed to comply with any A ia. requirements of this Act, has continued as such, or an nz having contravened for a period of six months after Ta of notice of failure or contravention has been served on to nt e the insurer by the Commissioner; ern m (d) the insurer is unable to fulfil the reasonable expectation ov G of policy-holders or potential policy-holders; or 5 20 2 (e) it is just and equitable on the interests of policy-holders © that the insurer should be wound up. (6) The court may, after considering the petition presented by the Commissioner, order the winding up. 326 THE INSURANCE ACT [CAP. 394 R.E. 2023] (7) The Commissioner shall in presenting a petition for winding up be deemed to be a creditor of the insurer. (8) Where an insurer is a subsidiary of a company which is Cap. 212 not an insurer and the holding company is wound up under . the provisions of the Companies Act or otherwise, the insurer G OA subsidiary shall not be wound up except on the basis of a n o f separate application for winding up. siois (9) In any proceedings upon a petition to wind uperp ,m an insurer is presented with evidence by the Commissioneour t under subsection (5), that the insurer was insolvent at the clit w ohse of the d period to which the accounts and balance sheebtu o tef the insurer last deposited in accordance with section 4d0is trrielate, or at any date as at which investigation was last dmo r ade in accordance with section 144 shall be evidence thatc edu the insurer continues to be unable to pay its debts, unless ro ep the contrary is proved. Cap. 212 (l0) Rules made under the Co r bme panies Act may regulate the procedure and the practice i y mna proceedings for winding up of insurers under this Act. ok bo (11) Subject to anyt hdis irections which may be given by the court- rt o f (a) the value o pfao the assets and liabilities shall be ascertained in any N ed m . anner and upon the basis which the liquidator thinerkvs fit; (b) st hr es ht e liabilities of an insurer in respect of the current rigll polices of long term insurance business shall, as far as . Aia practicable, be calculated by the method and basis to be za n n determined by an actuary appointed by the court; and of Ta (c) the liabilities of an insurer in respect of current policies nt e of general insurance business shall, as far as practicable, ern m be the portion of the last premiums paid which is Gov proportionate to the unexpired portion of the policy in 25 20 respect of which the premiums were paid. © (12) The actuary appointed in terms of subsection (11) shall, in the determination of liabilities, take into account any special directions which may be given by the court. [s. 153] 327 THE INSURANCE ACT [CAP. 394 R.E. 2023] Actuarial 155.–(1) A registered insurer carrying on general insurance valuation of general insurers business whose net premiums written are greater than fifteen percent of the net premiums written in Tanzania in the current year shall engage a qualified and independent property and . casualty actuary to examine the insurer’s claims reserves in the OAG subsequent year unless an examination has been performed f n o during the current or previous year. siois (2) A registered reinsurer shall engage a qualified rm pe and independent property and casualty actuary to examuto i ne its general insurance claims reserves and engage a quaitlh w ified and d independent life actuary to examine the policy luitaeb bilities of its life insurance business once in every two yeartsridis . (3) The examination report of the actuad roy r shall be submitted to the Commissioner by the insurerd ua cse part of the insurer’s annual returns. pro e r e b [s. 154] y ma Continuation 156.–(1) The liquidator shoako l l, so far as it may be possible and of business of insurer in unless the court othehrisw bise orders, carry on the insurance t liquidation business of an insu f rtr oer with a view to being transferred as a going concern too a pn a other insurer, whether an existing company or a compandy. Nformed for the purpose and, in carrying on that businseesr vse, the liquidator may agree to the variation of any contrac e tst sr of insurance in existence when the winding up order was h l rmig ade but shall not effect any new contracts of insurance. Al ia. (2) Where the liquidator is satisfied that the interest of the za ncreditor in respect of liabilities of the insurer attributable to n f T a its business require the appointment of a special manager of t o en the business, he may apply to the court, and the court may on ern m the application appoint a special manager of that business to ov G act during that time as the court may direct with the powers, 02 5 including any of the powers of a receiver or manager, as may ©2 be entrusted to him by the court. (3) The court may require the special manager to give any security which it considers necessary. 328 THE INSURANCE ACT [CAP. 394 R.E. 2023] (4) The court may make any order which it considers appropriate with regard to the payment of remuneration to the special manager. (5) The court may, subject to any conditions which it may . determine, reduce the amount of the contract made by an G OA insurer in the course of carrying on business as an alternative of n to winding up or otherwise. io ss [s. e1rm i p 55] ut o Secondary 157.–(1) For the purpose of, and in consequence ith company w of section 154, where the insurance business is transferredu tet do an insurer to whom this Act applies under an arrangemisetrn ibt in pursuance of which the first-mentioned insurer, in o rt dhis section called the “secondary company” then, if tuhcee d principal company is being wound up by or under thepr os dupervision of the court, the court shall, subject to the prboe vreisions of this section, order the secondary company to mb aey wound up by or under the supervision of the court oaon k d the court shall, subject to the provisions of this sectiosn bhi , order the secondary company to be t wound up in conjunrt cot f ion with the principal company and may by the same or aon py a subsequent order appoint the same person to be liquidatodr. N for the two insurers and make provision for any other mat rve steers which, may seem to the court necessary, with a view tot st hr ee insurers, being wound up as if they were one insurer. ( g l2 ri) hThe commencement of the winding up of the principal l ciao. Ampany shall, except as otherwise ordered by the court, be the za ncommencement of the winding up of the secondary company. an f T (3) In adjusting the rights and liabilities of the members nt o e of the several insurers between themselves, the court shall rnme have regard to the constitution of the insurer, and to the ov G arrangements entered into between the insurers in the same 5 02 manner as the court has regard to the rights and liabilities of ©2 different classes of contributors in the case of the winding up of a single insurer or as near to it as circumstances admit. (4) Where an insurer alleged to be a secondary company is not in the process of being wound up at the same time as the 329 THE INSURANCE ACT [CAP. 394 R.E. 2023] principal company to which the insurer is secondary company, the court shall not direct the secondary company to be wound up unless, after hearing presentations that may be argued by or on behalf of the insurer against being wound up, the court . is of the opinion that the insurer is secondary company to the OAG principal company and that the winding up of the insurer in n o f conjunction with the principal company is just and equitabliess. io (5) Where- pe rm (a) an insurer stands in the relation of principal cooum t pany to one insurer, and in the relation of a siteh w condary d company to another insurer; or uteb (b) there are several insurers standing diisn tr i the relation of secondary companies to one prindc iop r al company, the court may deal with any numbdue cre of those companies together or in separate groups, as piroe t thinks most expedient, upon the principles stipulated i r nbe this section. y m a [s. 156] k oo False document 158.–(1) A person whohi ss bhall in any statement, return, report, t certificate, balance s hofrt e et or other document required by or for the purposes of ot hp ais Act, wilfully makes a statement which is false in any mda. t Nerial particular commits an offence. (2) A p rve seerson who, with intent to defraud or deceive- (a) tsd re estroy, mutilate, alter or falsify any books, papers or ighl r securities or other record maintained for or by any . A l ia electronic retrieval system belonging to any insurer, anz broker or agent; or an f T (b) make or be a party to the making of any false or nt o e fraudulent entry in any register, books of account or m ern other document or other record maintained for or by v G o any electronic retrieval system belonging to any insurer, 02 5 broker or agent, ©2 commits an offence. (3) A person who unlawfully possesses, sells or distributes motor insurance stickers, certificates of insurance or any other documents in relation to insurance business commits an offence. 330 THE INSURANCE ACT [CAP. 394 R.E. 2023] (4) A person who contravenes the provisions of this section on conviction shall be liable to a fine of not less than five million shillings or to imprisonment for a term not less than two years, or to both. . [s. 157] OAG of Fees 159. The Commissioner shall charge fees in connection witshio n s the registration on insurers, brokers or agents and any o i ertmher exercise of his functions and the administration of the oou tffi p ce of the Commissioner under this Act as may be prescr iwbi tehd. ute d [s. 158] ib str Failure to remit 160. Any employer who deducts any porre dmi iums from any premiums by employers policy-holder’s salary or emoluments ancde df ails or delays to remit that premiums for a period exceedinrogd uthirty days, commits an offence and on conviction shall bee rl eipable to a fine not exceeding two times the amount of the p b aryemiums remittance of which is so delayed or to imprisonm m okent for a term of six months, or to both. bo thi s of [s. 159] rt o p a N d. PART XII e PRseOr v VISIONS RELATED TO OFFENCES re ts Offences 161. h l r–ig(1) A director, manager, controller and principal officer punishable by l A Commissioner oiaf. an insurer or a broker who contravenes the provisions of anz sections 18, 26, 30 or 34 commits an offence and on conviction n f T a shall be liable to penalty not exceeding five million shillings. t o en (2) An insurer or broker who knowingly employs any ern m person deemed unsuitable by virtue of sections 26 and 66 v G o respectively commits an offence and on conviction shall be 5 02 liable to a penalty not exceeding three million shillings. ©2 (3) For the purpose of subsection (2), where the facts which render a particular person unsuitable under those sections are either sufficiently notorious or facts that could have been ascertained very readily, the Court may presume that the insurer or broker employed that person knowingly. 331 THE INSURANCE ACT [CAP. 394 R.E. 2023] (4) The Commissioner may treat the non-payment of any fine imposed by him as sufficient reason for cancellation of the registration of any registered insurer, broker, insurance agent or agent for a broker. . Caps. 33, 20 and 6 (5) Notwithstanding any other action taken by the AG O Commissioner under this Act, any fine imposed by the of n Commissioner under the provisions of this section shall bseiois recoverable as a fine imposed by a court under the prov rm piseions of the Civil Procedure Act, Criminal Procedure Act autn o d the Evidence Act, and an affidavit sworn by the Comimth w issioner d shall be sufficient proof of the lawful impositiobnu t eof the fine to enable the court to issue a warrant under thdois teri provisions. (6) Notwithstanding subsection (5), a d wo rarrant shall not be issued until an appeal under section 12cedu 6 has been heard and disposed of or until the time withipnroe which an appeal may be made has expired. e r b ay m [s. 160] ok Carrying on o business without 162.–(1) A person carhrisy bing on any insurance business or a t registration business of an insurtr oa f nce agent, broker or agent for a broker without being reg piao stered as an insurer or an insurance agent, broker or age N dn. t for a broker, as the case may be, commits an offence anders veon conviction shall be liable to a fine of not less than fivtse r emillion shillings or imprisonment for a term of not less gh l trihan two years, or to both. l ia. A(2) Where the offence is committed by a company or anz partnership, every director, manager, controller or principal n f T a officer of the company or every partner, manager, controller t o en or principal officer of the partnership shall each be personally rnme liable, unless he proves to the satisfaction of the court that at Gov the time of commission of the offence he was not aware of the 02 5 commission of the offence or he took due diligence to prevent ©2 the commission of the offence. (3) A person convicted for an offence under this section shall, in addition to penalty prescribed under subsections 332 THE INSURANCE ACT [CAP. 394 R.E. 2023] (1) and (2), be ordered to pay any loss to persons affected by reason of or in the course of commission of the offence. [s. 161] Power to 163.–(1) This section shall apply to an offence committed AG. compound offences under this Act other than the offence in respect of which a of O minimum sentence of a fine or imprisonment is prescribed. ion ss (2) Notwithstanding section 161, the Commissioner i ermay compound any offence under this Act by requiring a pt pou erson to pay a sum of money in respect of which the owffit h ence was committed. tedu (3) Powers to compound offences shall osntr ib i ly be exercised where the person admits in writing that h eor hdas committed the offence and that he agrees to the offencue d ce being compounded. (4) The Commissioner shall giv d preo a receipt to the person from whom he receives the amo re buent of money in respect of the compounded offence and sumbmy a it to the Board in every three months a list of offences otho ka t have been compounded within that period. s b f th i o [s. 162] pa rt o Offences 164.–(1) Every. Nd insurer who- punishable by court (a) failesr vt eo comply with the provisions of this Act; or (b) a s s rc ets in contravention of the provisions of section 92, com rm hitig ts an offence. . A( ll2) An insurer who commits an offence under this section nia za or under the provisions of section 19, 20 or 91 shall be liable Tan to a fine not exceeding twelve million five hundred thousand of nt shillings and every director, manager, controller and principal e rnm officer or any insurer shall each be personally liable to a e ov fine not exceeding five million shillings or to imprisonment G 02 5 for a term not exceeding two years, or to both unless the ©2 director, manager, controller or principal officer proves to the satisfaction of the court that he was unaware of the default and had taken all reasonable steps to keep himself informed of any possibility of the default. 333 THE INSURANCE ACT [CAP. 394 R.E. 2023] (3) Every broker who contravenes the provisions of section 73 or 88 commits an offence. (4) A prosecution shall not be commenced under this section by any person other than the Commissioner or by a . person authorised in writing by the Commissioner. OAG [s. 163] of sio n s Power to 165. Subject to the provisions of the National Prosecurtmio i n prosecute e Cap. 430 Services Act, the Commissioner or any officer authoorui ts ped by the Commissioner shall have power to conduct p wrio thsecution for an offence committed under this Act. ted rib u ist [s. 164] r do Measures over 166.–(1) Where, in the opinion of the C d coem missioner, a person insurers and du brokers registered to conduct insurance brousiness pursuant to the provisions of this Act- repe (a) is not carrying out busaiyn bess in accordance with sound business principles;ok m (b) is pursuing a co bo ius rse of conduct that is not in the best interest of ins ouf trhance policy holders; t (c) is conduc ptain r g business in an unlawful or unethical manned.r N; o (d) is peurvr esuing a course of conduct that is not in the public si nr etserest; (e) ht rig is insolvent or likely to become insolvent in the All . immediate future; nia za (f) has failed to file prescribed information or information n Ta requested by the Commissioner within a reasonable ofnt time; rnm e (g) is acting or has acted in contravention of the provisions ov e of the Act; G 02 5 (h) has intentionally filed misleading information with the ©2 Commissioner; (i) has intentionally engaged in activities designed to mislead the public; 334 THE INSURANCE ACT [CAP. 394 R.E. 2023] (j) has failed to comply with the terms and conditions of registration or any previous remedial order issued by the Commissioner, the Commissioner may, in addition to any other cause of . action- G OA (i) take an undertaking from the insurance registrant; f n o (ii) issue a cease and desist order to the insurancseiois registrant; pe rm (iii) issue directions to the insurance registranotu; t (iv) appoint a temporary manager to take itch w harge of d the operations of the insurance brue tegistrant and shall fix his remuneration which trsidis hall be paid by the insurance registrant; d o r (v) prohibit the operation of e diun csurance business until that situation is rectifie ro epd; (vi) withhold approval o bre rconsent, if any, in relation to the defaulting or day m efaulted insurance registrant; (vii) initiate a legbaol olky binding removal or suspension order req thu isi ring a person or persons in the manage f rt roial position of the insurance registrant or bor po aker to cease participating in the affairs of tehd .e N insurance registrant on either temporary or erv res permanent basis; h(tsviii) impose fines consistent with the provision of this ll r ig Act on individual members of management for A ia. violations of this Act, regulations or previously za n n issued orders from the Commissioner; a of T (ix) cancel the registration of the insurance registrant; nt or rnm e e (x) take any other action felt necessary to rectify the ov G situation. 25 20 (2) The provisions of section 161(6) shall apply to any fine © imposed under this section. (3) The Board shall ratify the order of the Commissioner under this section before the order takes effect. 335 THE INSURANCE ACT [CAP. 394 R.E. 2023] (4) A person aggrieved by an order of the Commissioner issued under this section shall have a right to be heard by the Board before an act ratifying the order takes place. (5) Notwithstanding the preceding provisions of this section, . where in the opinion of the Commissioner, the course of OAG conduct pursued by the insurance registrant under subsection f n o (1) is likely to cause harm to policy-holders, the Commission io isesr may issue an order that takes effect immediately. ermp ou[ ts . 165] ith w General penalty 167.–(1) Every person who acts in contraventiounte o d f any of the General provisions of this Act commits an o r isffte ibnce and where no punishment has been stipulated by any oor tdher section in this Act for that offence, on conviction shalle duc be liable to a fine not exceeding five million shillings. rod rep(2) Where an offence to wbeh ich this section applies is committed by a body of persy ma ons, every director, manager, controller and principal kffi oo cer of the company and every partner, manager or prhisn bcipal officer of the partnership shall t be deemed to be gurit lot fy of the offence. (3) Notwithstoa pn ading subsection (2), where the individual concerned cadn. Nprove to the satisfaction of the Commissioner that he waser vs neot aware of the act or default which contravened the pro e tsv risions of this Act and could not with reasonable diligeignhl r ce have become aware of it, he shall not be deemed l giau. Ailty under this section. za n [s. 166] Tan f Regulatinotn os and 168.–(1) The Minister may, make regulations- rules ofe court rnm (a) prescribing any matter or thing referred to in this Act e ov as prescribed or to be prescribed; G 02 5 (b) in relation to any other matter or thing authorised ©2 or required by this Act to be made or done by or in accordance with regulations; (c) regulating the registration and superintendence of the conduct of actuaries, loss adjusters, private 336 THE INSURANCE ACT [CAP. 394 R.E. 2023] investigators, intermediaries, risk managers, insurance surveyors and claim settling agents; (d) prescribing procedures for registration of insurance companies, brokers and agencies under this Act; . (e) prescribing procedures for the Board; and G OA (f) generally for the purpose of giving effect to this Act. n o f (2) Regulations made under this section shall be publishie io ssd in the Gazette and may make different provisions for diff rm pee ent classes of insurers, brokers or agents and insurance busuitn ess. ith o w [s. 167] d ute Repeal and 169.–(1) [Repealed the Insurance Act, No. 18s tro ibf 1996]. savings i (2) Notwithstanding the repeal of the I nors durance Act- (a) all subsidiary legislation, orde ed ucrs or directives made or issued and all exemptiopnros d made or given under the repealed Act whichb ea rree in force on the date of commencement of thmiasy Act shall be deemed to have been made or giveono k under this Act, and shall remain in force until rehivs obked by subsidiary legislation, order, t directive or f rct aoncellation made under this Act or until it otherwiseo pe axpires or ceases to have effect; and (b) all offidc.e Nrs appointed to perform functions specified or to seexr veercise powers stipulated under the repealed Act or tst hr ee Insurance Staff Regulations and Scheme of Service ighl r made under that Act shall, unless their appointments Al ia. are revoked or any officer otherwise ceases to hold n za office or re-appointed, be deemed to be authorised an f T officers appointed in accordance with the provisions of t o en this Act. m ern [s. 168] ov 5 G 02 ©2 337 THE INSURANCE ACT [CAP. 394 R.E. 2023] FIRST SCHEDULE (Made under section 13(7)) TENURE AND CONDUCT OF BUSINESS BY THE BOARD . Tenure of office 1. A member of the Board shall hold office for a period of three years AG on such terms and conditions as may be specified in the instrument O of of appointment and may be eligible for re-appointment for one more io n term. iss rm Vacation of office 2. A member may- t p e (a) at any time resign from office by notice in writthino ug to the Minister; or wi (b) be removed from office by the Minister if the d ut emember- (i) has been absent from three consecuitsitv ribe meetings of the Board without permission from th or ed Chairman; (ii) is adjudged bankrupt or enteedrs into a composition scheme or arrangement withd uhcis creditors; (iii) is convicted of an offenceep i rnovolving dishonesty, fraud or moral turpitude; e r (iv) is convicted of a acyr biminal offence and sentenced to imprisonment fokr m a term exceeding six months; (v) is incapacitat o ebdo by prolonged physical or mental illness; or thi s (vi) is othertw oi f se unable to perform his functions. ar Meetings 3.–(1) The Board soh pall meet not less than four times in every financial year and not mdo. r Ne than four months shall elapse between the date of one meetinge ravn ed the date of the next meeting. (2) There qs uorum for the conduct of the business of the Board shall be half of hthtse total number of members. (ll3 r) ig The Chairman shall preside at every meeting of the Board, and ian. Ahis absence, members present shall elect one among them to be the anC i hairman. an z (4) Unless a unanimous decision is reached, a decision on any matter T of before the Board shall be by a majority of votes of the members present en t and in the case of an equality of votes, the Chairman or the person rnm presiding shall have a casting vote. ov e (5) Subject to paragraph (3), proceedings of the Board shall not be 5 G2 invalid by reason only of a vacancy among the members of the Board. 20 (6) Subject to subparagraph (2), the Board may determine its own © procedure and for the attendance of any other person at its meetings. Common seal 4.–(1) The affixing of the common seal of the Board shall be authenticated by the signatures of the Secretary and the Chairman and any document required by law to be made under seal. 338 THE INSURANCE ACT [CAP. 394 R.E. 2023] (2) The decisions of the Board may be authenticated by the signatures of the Secretary and the Chairman. Contracts and 5. A contract or instrument which, if entered into or executed by a instruments person not being a body corporate, would not require to be under seal, may be entered into or executed on behalf of the Board by any person G. generally or specially authorised by the Board for that purpose. f O A o Minutes 6. The Board shall cause minutes of all proceedings of meetings of theio n Board to be entered in books kept for that purpose. iss erm ut p o SECOND SCHEDULE th w i ute d (Made under section 51(1)) tribs CATEGORIES OF INSURANCE B di orU SINESS PART A ed du c LONG TERM BUepS rIoNESS e r b Number Description Nature oafym Business I Life and annuity Effoeoc kting and carrying out contracts of insurance iso bn human life or contracts to pay annuities of f th human life, but excluding (in each case) contracts t o within Class III below r II Marriage oa np ad Effecting and carrying out contracts of insurance birth . N to provide a sum on marriage or on the birth of a ed child, being contracts expressed to be in effect for erv a period of more than one year. s III ts reLinked long Effecting and carrying out contract of insurance igh term on human life or contracts to pay annuities on ll r human life, where the benefits are wholly or a. A partly to be determined by referenced to the an i value of or the income from property of any nz description (whether or not specified in the a f T contracts) or by reference to fluctuations in, or t o in an index of, the value of property and any en description (whether or not so specified). ern m IV Permanent Effecting and carrying out contracts of insurance v Go health providing specified benefits against risks of 5 2 persons, becoming incapacitated in consequence 20 of sustaining injury as a result of an accident or © of an accident of a specified class or of sickness or indemnity, being contracts that- 339 THE INSURANCE ACT [CAP. 394 R.E. 2023] (a)are expressed to be in effect for a period of not less than five years, or until the normal retirement age for he persons concerned, or without limit of time; and (b)either are not expressed to be terminable by the insurer, or are expressed to be so terminable AG. only in special circumstances mentioned in the f O contract. n oo V Tontines Effecting and carrying out tontines. iss i VI Capital Effecting and carrying out of- erm redemption t p ou (a)capital redemption; or ith w (b)pure endowment and deferredte adnnuity defined in any law for the estabibluishment and registration of retirement fduisn tdr s in Tanzania. VII Deposit Effecting and carrying o ourt - administration edc schemes and du pension funds rep ro (a)contractbse t o groups to maintain and manage deposit aayd ministration polices; or (b)cookn mtracts of the kind mentioned in paragraphs ( ab)o,that are combined with contracts of insurance s thicovering either conservation of capital or of payment of a minimum interest. art o p N PART B d. erv e GENERAL BUSINESS re s Numbehrt s Description Nature of Business ig 1 ll rA Accident Effecting and carrying out contracts of insurance ia. and providing fixed pecuniary benefits or benefits in an the nature of indemnity (or a combination of both) z an against risks of the person insured- T of (a)sustaining injury as the result of an accident or of nte accident of a specified class; rnm (b)dying as the result of an accident or of an veo accident of a specified class; or , G 25 (c)becoming incapacitated in consequence of 20 disease or of disease of a specified class, inclusive © of contracts relating to industrial injury and occupational disease but exclusive of contracts falling within Class 2 below or within class IV in the First Schedule to this Act (permanent health). 340 THE INSURANCE ACT [CAP. 394 R.E. 2023] 2 Sickness Effecting and carrying out contracts or insurance providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of the two) against risks of loss to the persons insured attributable to sickness or infirmity but exclusive of contracts falling within Class IV in the First . Schedule to this Act. AG f O 3 Land vehicles Effecting and carrying out contracts or insurance n o against loss of or damage to vehicles used on land, sio including motor vehicles, but excluding railway is rolling stock. erm t p 4 Railway Effecting and carrying out stock contracts oouf rolling insurance against loss of or damage to a irthailway rolling stock. d wte 5 Aircraft Effecting and carrying out contrtraibc uts of insurance upon aircraft or upon the macihs inery, tackle, furniture or equipment of aoirr dcraft. 6 Ships Effecting and carryingu co eudt contracts of insurance upon vessels used oond the sea or inland water, or upon the machineepr ry, tackle, furniture or equipment of such vessels be . r 7 Good transit Effecting anyd a carrying out contracts of insurance againstk l omss of or damage to merchandise, baggage and aolol other good in transit, irrespective of the foirsm b of transport. f th8 Fire and o Effecting and carrying out contracts of insurance natural forpcaesrt against loss of or damage to property (other than o property to which Classes 3 to 7 above relate) due d. N to fire, explosion, storm, natural forces other than rve storm, nuclear energy or land subsidence. 9 e reDs amage of Effecting and carrying out contracts of insurance hts property against loss of or damage to property (other than rig property to which Classes 3 to 7 above relate) due All to hail or frost or to any event (such as theft) other ia. than those mentioned in Class 8 above. an nz 10 Motor vehicle Effecting and carrying out contracts of insurance Ta liability against damage arising out of or in connection with t o f use of motor vehicles on land, including third party en risks and carrier's liability. ern m 11 Aircraft Effecting and carrying out contracts of insurance ov liability against damage arising out of or in connection with 5 G the use of aircraft including third party risks and 2 20 carrier's liability. © 12 Liability for Effecting and carrying out contracts of insurance ships against damage arising out of or in connection with the use of vessels in the sea or an inland water, including third party risks and carrier's liability. 341 THE INSURANCE ACT [CAP. 394 R.E. 2023] 13 General Effecting and carrying out contracts of insurance liability against risks of the persons insured incurring liabilities to third parties, the risks in question not being risks to which Class 10, 11 or 12 above relates. 14 Credit Effecting and carrying out contracts of insurance against risks of loss to the persons insured arising G. from the insolvency of debtors of theirs or from f O A the failure (otherwise than through insolvency) of n o debtors of theirs to pay their debts when due. io iss 15 Surety ship Effecting and carrying out - erm (a)contracts of insurance against risks of losust t po the persons insured arising from their ha o perform contracts of guarantee enteredw ii thving to d nto by them; ute (b)contracts for fidelity bonds,s pi treibrformance bonds, administration bonds, bail b odnds, custom bonds or similar contracts of guara r dn otee. 16 Miscellaneous Effecting and carryingu co eut contracts of financial loss insurance against parnoyd of the following risks namely - (a)risks of losse t ro e the persons insured attributed to interruptionys b of the carrying on business carried on by them masa to reduction of the scope of business so carriedok on; o (bi)sr bisks of loss to the persons insured attributable to f thheir incurring unforeseen expense; and art o (c)risks neither falling within paragraph (a) or (b) o p above nor being of a kind such that the carrying d. N on of the business of effecting and carrying out rve contracts of insurance against them constitutes the se carrying on of insurance business of some other s r e class. t 17 h rig Legal Effecting and carrying out of contracts of insurance ll A expenses against risks of loss to the persons insured ia. attributable to their incurring legal expenses anz (including costs of litigation). an T 18 Assistance Assistance for persons who get into difficulties while oft traveling, while away from home or while away en from their permanent residence ern m ov 25 G ©20 342