Tanzania deregisters 40 car insurance brokers

Money Markets

Tanzania parliament building in Dodoma. File 

By BD Correspondent in Dar es Salaam

In Summary

• Mr Nchemba said the 2001 Motor Vehicle Insurance Act chapter 169 clauses 4 and 5 forbade any vehicle to operate on the country’s roads without an insurance cover.

Tanzania has de-registered and sued 40 brokers for printing and distributing fake vehicle insurance stickers in 2012/13, its Parliament was told. Over 80 insurance agents were also de-registered and sued during the same year, according to the deputy minister for Finance, Mr Mwigulu Nchemba.

 

He said these were but some of the stern measures the government took against unscrupulous insurance firms for denying the government some revenue. Mr Nchemba was responding to Ms Mary Chatanda (Special Seats – CCM) who wanted to know measures the government was taking against reports aired by the Tanzania Broadcasting Corporation (TBC).

The State-owned broadcaster, according to her, reported mid last year that cargo trucks plying between Tanzania and Malawi and Zambia were evading tax by dodging insurance covers.

“What measures is the government taking against the firms for causing the loss through tax evasion,” she queried.

Mr Nchemba said the 2001 Motor Vehicle Insurance Act chapter 169 clauses 4 and 5 forbade any vehicle to operate on the country’s roads without an insurance cover. He said the 2009 Insurance Act Number 10 also meted a minimum punishment of two years imprisonment or pay a fine of Sh5 million against whoever is caught printing, distributing or using fake motor vehicle insurance stickers.

“All cargo truck operators are duty bound to ensure their vehicles and goods are insured for the safety of other road users,” Mr Nchemba said.

The deputy minister called on all Tanzanians to adhere to the rule of law and report to relevant organs in case they come across defaulters.