Legal and Practical Problems Relating to Insurance Claims and Settlement of the Claims in Tanzania

This study looks into practical and legal problems relating to insurance claims and claims settlement in Tanzania. It is hypothesized that, the laws relating to insurance claims and claims settlement favour insurers more than the insured. Three insurance companies purposely selected were included, namely the National Insurance Corporation (NIC), Phoenix Insurance Company and Jubilee Insurance Company. Data was collected through Interviews with the insurance companies’ officials (insurers), focus group discussion with insurance customers (the insured) and documentary review and analysis. The findings confirmed the hypothesis that, laws relating to insurance claims and claims settlement favour insurers more than the insured. The confirmation of the hypothesis is based on a number of facts, of which few are advanced herein. First, laws relating to insurance claims and claims settlement tend to ensure that, the insured pay premiums to insurance companies long enough before they can be paid their losses insured. In this regard, the laws consequently tend to exempt people with health problems from insurance coverage. Similarly, the laws impose conditions and punishment to the insured upon policy breaches, but remain silent on the part of insurers. For instance, the laws may specify penalties for non-complying insured, but may simply declare insurers as guilty without specifying any measures against them. The laws also specify the time within which insurers should settle claims in favour of the insured, while at the same time enabling insurers to avoid their responsibilities. Secondly, stakeholders, including the government, Non-government organizations, politicians and human rights activists should push Government to amend unbalanced insurance policies and legislations