Govt tightens noose on insurance firms

THE government has directed the Tanzania Insurance Regulatory Authority (TIRA) to take stringent measures, including revoking licences of insurance companies which fail to fulfill their obligations, including timely compensation to their clients on various disasters and consideration of actual value of insured properties.

The directives were issued by Deputy Minister for Finance and Planning, Hamad Hassan Chande when he visited and inspected various pavilions at the 2nd National Financial Sector Services Week at Rock City Mall grounds in Mwanza.

He said victims have been encountering inconveniences when following up their compensations because they are not being paid on time, and if paid they receive less payment because the value of their properties have depreciated.

“We have received several complaints about the insurance companies … I am directing TIRA to take action against companies which have failed to fulfill their legal obligations,” he said.

The Deputy Minister also directed the insurance arbitration office to resolve cases on time by abiding by laws and various guidelines and ensuring that insurance companies are held accountable for the victims to get their rights on time.

He further instructed the Bank of Tanzania to meet with financial institutions in the country to find out how they can reduce interest rates on loans to enable more Tanzanians to benefit from the loans schemes.

Minister Chande said that the sixth phase government under President Samia Suluhu Hassan has reduced interest rate on loans taken by institutions by up to 3 per cent but the interest rate of 9 per cent and above charged by financial institutions on loans taken by wananachi is too high, especially to low income earners.

On capital markets, Mr Chande directed the Capital Markets and Securities Authority (CMSA) to educate the public about markets and how people can benefit.

On his part, Commissioner for Financial Sector Development Department in the Ministry of Finance and Planning Dr Charles Mwamwaja said that commemoration of the National Financial Sector Services Week does not only provide education but also an opportunity to receive advice and views from wananachi on various issues related to finance so that they can be improved.

He said the views have been taken and the government will work on them based on issues related to policies, procedures and implementation in order to ensure growth of the financial sector to reach 80 per cent of Tanzanians with education come 2025.

Dr Mwamwaja said the education provided will help wananachi to make various financial decisions, including private financial management, lending opportunities, savings, the importance of insurance and issues related to investment.

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