Monica Denis Mushy
Advocate head of Corporate and conveyance department
Address: Plot No. 137/9, Kijenge Area, Nelson Mandela Road.
+255 765 530 550
Office Hours: 08.00 am - 17.00 pm.
[email protected]
Insurance Law
Family Law Issues:
- Principle of Utmost Good Faith
- Principle of Insurable Interest
- Principle of Indemnity
- Principle of Subrogation
- Principle of Contribution
- Principle of Loss Minimisation
- Principle of Causa Proxima
About Insurance Law
Insurance law in Tanzania, as it relates to land matters, is primarily governed by the Insurance Act, 2009 (Cap 394), which establishes the legal framework for insurance business regulation and supervision, including aspects that may intersect with land laws. The Tanzania Insurance Regulatory Authority (TIRA) oversees the implementation of this Act. Below is an overview of key aspects of insurance law in Tanzania, with a focus on its relevance to land laws, based on available information.
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Key Aspects of Insurance Law in Tanzania
Regulatory Framework:
The Insurance Act, 2009 regulates all insurance activities, including general and long-term insurance businesses, reinsurance, and associations of underwriters. It defines insurance business as assuming obligations under any class of insurance, including assurance and reinsurance.
Regulatory Framework:
The Insurance Act, 2009 regulates all insurance activities, including general and long-term insurance businesses, reinsurance, and associations of underwriters. It defines insurance business as assuming obligations under any class of insurance, including assurance and reinsurance.
The Tanzania Insurance Regulatory Authority (TIRA), established under the Act, is responsible for licensing, regulating, and supervising insurers, brokers, agents, and other industry players.
Insurers must be registered as body corporates under the Companies Act or other relevant laws, with at least one-third of controlling interests (shares, paid-up capital, or voting rights) held by Tanzanian citizens or one-third of the board comprising Tanzanian citizens.
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- Insurance and Land-Related Coverage:
- Insurance policies in Tanzania can cover land-related assets, such as buildings, structures, and contents, against risks like fire, explosion, lightning, or earthquakes. For instance, the Zanzibar Insurance Corporation (ZIC) offers policies that indemnify against loss or damage to buildings and other property.
In the context of land, insurance may apply to construction projects, where contractors and property owners secure coverage for risks like accidental damage or third-party liabilities arising from construction activities.
The valuation of land and buildings for insurance purposes must be conducted by an independent property valuer resident in Tanzania, approved by the Commissioner of Insurance, at least every three years.
Financial and Reporting Requirements:
- Insurers must maintain solvency margins and admissible assets, including land and buildings, valued at net sale value after deducting reasonable costs. This is critical for insurers holding land as part of their assets.
Annual returns, including balance sheets and profit-and-loss accounts, must comply with international accounting standards and Tanzanian laws, with specific provisions for land valuation and reporting.
Principle of Uberrimae Fidei:
- Insurance contracts in Tanzania operate under the principle of uberrimae fidei (utmost good faith), requiring full disclosure by both parties. This is particularly relevant in health insurance contracts but can extend to property insurance, including land-related policies, to ensure transparency in risk assessment.
Dispute Resolution:
- The Insurance Ombudsman handles complaints related to insurance claims, with a monetary limit of TZS 40 million for claims and TZS 15 million for awards. Disputes exceeding these limits are referred to courts.
The Insurance Tribunal addresses disputes arising from decisions of the Commissioner of Insurance, providing a formal mechanism for resolving conflicts, including those related to land or property insurance.
Recent Developments:
- In June 2025, the Tanzanian government proposed amendments to the Insurance Act to introduce mandatory travel insurance for foreigners entering the country at a rate of USD 44, aligning with practices in Zanzibar. While not directly related to land, this indicates ongoing updates to the insurance framework.
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- Intersection with Land Laws in Tanzania
- Land laws in Tanzania are primarily governed by the Land Act, 1999 (Cap 113) and the Land Ordinance of 1923, which declare all land as public land under the President’s control. The intersection of insurance and land laws is most evident in the following areas:
- Land Tenure and Insurance:
- Land in Tanzania is held under a Right of Occupancy, either statutory or customary, as outlined in the Land Act. Insurance policies covering land or buildings must align with these tenure rights, ensuring the insured has a legal title to the property.
For example, insurance for buildings or structures on land requires proof of ownership or a valid right of occupancy, as the “owner” of a policy is defined as the person with legal title.
Construction and Insurance:
- The Land Act, 1999 regulates land use for construction, including requirements for land use planning and development. Construction projects often require insurance coverage for risks like damage to property or third-party liabilities, governed by the Insurance Act.
Contractors must be registered with the Contractors Registration Board (CRB), and insurance is often a prerequisite for compliance with construction regulations.
Valuation of Land for Insurance:
- Insurers holding land as assets must have it valued by an independent valuer approved by the Commissioner. This valuation affects solvency calculations and ensures compliance with insurance regulations.
Disputes over land valuation or insurance claims may involve customary law, particularly in rural areas, where primary courts handle civil cases involving property under customary or Islamic law.
Environmental and Social Considerations:
- The Environmental Management Act requires environmental impact assessments for construction projects, which may influence insurance policies covering environmental risks on land.
Historical land disputes, such as those arising from the Ujamaa socialist policies or villagization programs, highlight the complexity of insuring land with contested titles or rights.
- Challenges and Considerations
- Customary vs. Statutory Land Rights: The coexistence of customary and statutory land tenure systems can complicate insurance contracts, as insurers must verify the legal status of the land or property being insured.
Access to Justice: While the Insurance Ombudsman provides a cost-effective dispute resolution mechanism, complex land-related insurance disputes may require court intervention, which can be time-consuming and costly.
Regulatory Compliance: Insurers and property owners must navigate both insurance and land regulations, ensuring compliance with TIRA and land authorities.
Conclusion
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