Insurance in Tanzania

Insurance is commonly called bima in Tanzania. It can protect against death, illness, disability, accidents, workplace injuries, vehicle damage, fire, theft, property loss, transport risks, business interruption, liability and loss of income. A private policy sets the insured risk, exclusions, sum insured, premium, duration, renewal terms, claim procedure and payment conditions. Statutory schemes use compulsory contributions and defined benefits instead of an individually negotiated private policy. The Tanzania Insurance Regulatory Authority (TIRA) regulates the market under the Insurance Act, Cap. 394 R.E. 2023. It registers and supervises insurers, brokers, agents, Takaful providers, reinsurers, loss assessors, health service providers and automobile repairers in Mainland Tanzania and Zanzibar. Takaful is insurance arranged according to Islamic principles. Microinsurance provides simpler, lower-value cover for defined risks and can be offered through approved providers. TIRA's Licensed Entities Register is the relevant check before buying cover or using an intermediary. TIRA's consolidated 2024 indicators recorded gross written premiums of TZS 1.52 trillion. General insurance accounted for TZS 957.2 billion, life insurance for TZS 309 billion and health insurance for TZS 187.5 billion. Takaful premiums were TZS 4.6 billion. Insurers received claims of TZS 727.6 billion and paid TZS 545.4 billion, representing 74.9% of received claims under that indicator. Market penetration was 2.08% and insurance density was TZS 22,878. Coverage estimates differ by definition: TIRA's AIMP measure reported 25.9 million people, or 39.2%, while NIIS reported 27.7 million, or 43.1%. Private products include life, health, accident, funeral, motor, property, fire and natural-forces, theft and property-damage, goods-in-transit, marine, aviation, liability, credit, agriculture, Takaful and microinsurance cover. Health insurance remains concentrated: six of 40 licensed insurers had health products in the 2024 research. Agriculture accounted for less than 1% of the market, so rural households and agricultural businesses may find fewer suitable products. Informal workers, rural households, women, young people and people with disabilities are identified as underserved groups. Social insurance differs between Mainland Tanzania and Zanzibar. On the Mainland, the National Social Security Fund (NSSF) covers private-sector employees, non-governmental and religious organisations, international employees, foreigners and self-employed contributors. Its listed benefits include retirement, invalidity, survivors, funeral, maternity, unemployment and health benefits. The standard NSSF contribution is 20% of monthly wages, commonly split 10% by the employer and 10% by the employee or 15% and 5%; the employee share does not exceed 10%. The employer normally remits the contribution within one month after the wage month, and late payment attracts a penalty of 5% for each month or part of a month. The Public Service Social Security Fund (PSSSF) serves public-service employees on the Mainland. Its listed retirement age is 60, with voluntary retirement possible from 55, and its benefits include retirement, sickness, maternity, unemployment, survivors and invalidity benefits. The Workers Compensation Fund (WCF) covers work injuries and occupational diseases for public- and private-sector employees. Employers contribute 0.5% of gross earnings, normally during the current or following month. WCF support can include medical care, rehabilitation and compensation for injury, disease or death; medical care can last for up to 24 months. Workplace claims use forms such as WCC-1, WCN-1 and WCP and require employer and medical evidence. Zanzibar uses the Zanzibar Social Security Fund (ZSSF), established under the Zanzibar Social Security Fund Act No. 2 of 2005. Employers contribute 13% and employees 7%, making a total contribution of 20%. Employer and employee registration is generally due within 14 days, and contributions are due by the 15th day after the end of the relevant month. ZSSF benefits include old age, disability, survivors, maternity, job loss and workplace injury. The Zanzibar Health Services Fund (ZHSF) is a separate health-insurance system using online registration, approved facilities and the hotline 115. Mainland institutions and Zanzibar institutions should not be treated as interchangeable. On the Mainland, the Universal Health Insurance Act, Cap. 161, and the 2024 regulations establish a framework intended to extend health insurance to all citizens. Implementation is staged, and the National Health Insurance Fund (NHIF) has a central role. Access can use individual, group, student, cooperative or Dunduliza arrangements, as well as agents and digital registration. The research does not establish one reliable national contribution amount for every applicant, so the premium or contribution must be checked for the chosen scheme and eligibility category. Health insurance concerns scheme membership, premiums, claims and access to approved providers; medical treatment itself belongs to the health topic. A resident or resident company generally obtains cover through a Tanzanian insurer. An overseas insurer may be used only through a resident insurer and with the Commissioner's prior written approval when the cover is not locally available. Import cargo generally requires a Tanzanian insurer, and premiums and settlement are handled in Tanzanian shillings. Motor policies can be verified through TIRAMIS, the Tanzania Insurance Regulatory and Supervisory information system. Do not treat a bank payment channel or a business name as proof that an insurer is licensed. Premiums for private insurance depend on the product, insured amount, risk class, benefits, exclusions and the applicant's circumstances. There is no single national private premium. Policy duration and renewal follow the contract. General insurance normally lapses after a 15-day grace period when the policyholder has not given renewal instructions in time. Life policies can retain non-forfeiture or paid-up protection when the legal and contractual conditions are met. The Insurance Act requires cover before importing goods and for operating a prescribed public market or commercial building, and it imposes requirements connected with marine vessels, ferries and pontoons. Motor-vehicle insurance is legally required and may be checked by TIRA or the police. Comprehensive motor cover, property, fire, theft and business-interruption cover may be voluntary, contractually required by a lender or required by the risk involved. A policyholder should read and sign the policy, keep a copy, pay premiums on time, give truthful application information, report a loss promptly in writing, provide proof of loss and cooperate with the insurer. The policyholder should also avoid intentionally increasing the risk and update the insurer about relevant changes to property, residence, beneficiaries or other insured information. When comparing a new policy, check exclusions, waiting periods, beneficiaries, claims history and renewal dates so that changing providers does not create an uninsured period. For a claim, the insurer should pay within 45 days after receiving the executed discharge. The Commissioner may allow one further period of up to 45 days. An unjustified delay after that extension can support a bad-faith claim. NSSF, PSSSF, WCF and ZSSF claims follow their own fund, employer and medical-document procedures, while health claims follow the selected scheme and provider process. A consumer should first try to resolve a dispute with the registered insurer, broker, agent or other registrant and retain proof of that attempt. A complaint to the TIRA Ombudsman Service generally concerns a dispute between a consumer and a registrant and should be brought within the preceding 12 months. The Ombudsman's award for direct loss is limited to TZS 15 million, while health complaints have a wider jurisdiction. Certain railway, aircraft, ship, aviation-liability, ship-liability, surety and miscellaneous legal claims are excluded. The Insurance Appeals Tribunal is available after the applicable complaint process.