The Insurance (Vesting of Interests and Regulation) Act

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CHAPTER 349
THE INSURANCE
(VESTING OF INTERESTS AND REGULATION) ACT
[PRINCIPAL LEGISLATION]
Arrangement of Sections
Section Title
part i
PRELIMINARY PROVISIONS
1. Short title.
2. Interpretation.
part ii
VESTING OF SHARES AND COMPENSATION
3. Vesting of shares.
4. Effect of reduction in membership of Corporation.
5. Construction of instruments affecting shares.
6. Compensation.
part iii
DUTY OF THE CORPORATION
7. Duty of Corporation to provide adequate insurance services.
part iv
LIFE INSURANCE
8. Corporation may carry on life insurance business.
9. Subsisting life policies.
10. Investment of premium income.
11. Policies payable in foreign currency.
part v
INSURANCE OTHER THAN LIFE INSURANCE
12. Application of Part IV.
13. Repealed.
14. Subsisting policies.
15. Minister may restrict insurance business in interim period.

THAN LIFE INSURANCE
12. Application of Part IV.
13. Repealed.
14. Subsisting policies.
15. Minister may restrict insurance business in interim period.

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THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E. 2023]
part vi
GENERAL POWERS OF MINISTER FOR
PROTECTION OF POLICY HOLDERS
16. Minister may require information.
17. Minister may require deposit of securities.
18. Minister may appoint receiver.
part vii
MISCELLANEOUS PROVISIONS
19. Responsibilities of directors, managers, etc..
20. Regulations.

f securities.
18. Minister may appoint receiver.
part vii
MISCELLANEOUS PROVISIONS
19. Responsibilities of directors, managers, etc..
20. Regulations.

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CHAPTER 349
THE INSURANCE
(VESTING OF INTERESTS AND REGULATION) ACT
An Act to take over shares in the National Insurance Corporation and to
make provision for the protection of policy holders.1
[12th February, 1967]
Acts Nos. 4 of 1967
18 of 1996
2 of 2000
PART I11
PRELIMINARY PROVISIONS
1. This Act may be cited as the Insurance (Vesting of Interests
and Regulation) Act. 2.–(1) In this Act, unless the context otherwise requires-
“approved securities” means securities issued by the United
Republic and such other securities as the Minister shall,
by notice in the Gazette approve;
“contingent obligation dependent on human life” means-
(a) an obligation to pay to a particular person certain
sums of money at specified intervals or a certain sum
of money or to provide for a particular person a certain
other benefit-
(i) on the occurrence of the death of a particular
person or on the occurrence of the birth of a
child to a particular person at anytime or within a
specified period; or
1 The long title is amended by Act No. 18 of 1996 s.

rrence of the birth of a
child to a particular person at anytime or within a
specified period; or
1 The long title is amended by Act No. 18 of 1996 s.

140
Short title
Interpretation

140
Short title
Interpretation

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THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E.

art of this book may be reproduced or distributed without permission of OAG.522
THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E.

2023]
(ii) in the event of a particular person continuing to
live throughout a specified period or specified
periods; or
(b) an obligation assumed-
(i) until the occurrence of the death of a particular
person; or
(ii) during a specified period or until the occurrence
of the death of a particular person before the
expiration of that period;
“Corporation” means the National Insurance Corporation
of Tanzania Limited;
“insurance business” means the business of assuming the
obligations of an insurer in any class of insurance business
but does not include re-insurance business;
“insurer” means a person, firm, company or association of
brokers, carrying on insurance business;
“life insurance business” means the business of assuming
the obligations of an insurer under life policies;
“life policy” means a policy whereby the insurer assumes,
in return for the payment, or the promise of payment of
a sum or sums of money or the promise of a periodical
payment of a certain premium, a contingent obligation
dependent on human life and includes any contract
of insurance customarily regarded as a life insurance
contract;
“Minister” means the Minister responsible for finance;
“policy” means a valid insurance contract whatever the form
in which the rights and obligations of the parties to the
contract are expressed or created; and
“Treasury Registrar” means the corporation sole established
under that name by the Treasury Registrar (Powers and
Functions) Act.

ssed or created; and
“Treasury Registrar” means the corporation sole established
under that name by the Treasury Registrar (Powers and
Functions) Act.

(2) For the purposes of this Act, an association of
individuals with no share capital established for the purpose of
rendering aid to the members or their dependants, commonly
called a friendly society, which does not at any time after the
Cap. 370

for the purpose of
rendering aid to the members or their dependants, commonly
called a friendly society, which does not at any time after the
Cap. 370

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THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E. 2023]
commencement of this Act employ or remunerate a person for
inducing persons to become members of the association or for
collecting from members of the association contributions or
subscriptions, shall be deemed not to be an insurer. PART II
VESTING OF SHARES AND COMPENSATION
3. All the shares in the Corporation of shares other than those
already vested in the Treasury Registrar, shall, by virtue of this
section and without further assurance, vest, free of any trust,
mortgage, charge lien, interest or any other encumbrance, in
the Treasury Registrar and shall be deemed to have so vested
upon the effective date. 4.

mortgage, charge lien, interest or any other encumbrance, in
the Treasury Registrar and shall be deemed to have so vested
upon the effective date. 4.

Every provision in any written law or in the articles of
association of the Corporation providing for any consequences
to follow, or requiring any act or thing to be done, or entitling
any person to do any act or thing or to take any action as a
result of a reduction in the number of the members of the
Corporation below a certain number, shall be of no effect in
relation to the Corporation. 5. Power of attorney or other instrument which-
(a) is executed before the effective date; and
(b) operates in relation to any of the shares vested in the
Corporation by virtue of section 3,
shall have the like operation in relation to the right to payment
of compensation in respect of the acquisition of the shares in
relation to which that power of attorney or other instrument
relates. 6.–(1) The United Republic shall pay full and fair compensation
in respect of the shares taken over under section 3. (2) When the amount of compensation payable to any
person entitled to it by virtue of subsection (1) has been
Vesting of shares
Effect of
reduction in
membership of
Corporation
Construction
of instruments
affecting shares
Compensation

f subsection (1) has been
Vesting of shares
Effect of
reduction in
membership of
Corporation
Construction
of instruments
affecting shares
Compensation

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THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E. 2023]
determined, the Minister shall issue to that person a certificate
setting out such amount and that amount shall constitute a
charge on and be paid out of the Consolidated Fund:
Provided that, the said amount of compensation shall be
payable in the manner and in installments which the Minister,
after consultation with the person entitled, shall determine. (3) This Act shall not be construed so as to affect in any
way the rights of the holder of a certificate issued under the
Tanzania Investment Act. PART III
DUTY OF THE CORPORATION
7.

ued so as to affect in any
way the rights of the holder of a certificate issued under the
Tanzania Investment Act. PART III
DUTY OF THE CORPORATION
7.

As from the effective date and notwithstanding any provision
which may be contained in the Memorandum of Association
or the Articles of Association of the Corporation, it shall be the
duty of the Corporation to-
(a) provide, in accordance with the conditions appropriate
in the normal and proper conduct of insurance
business, adequate and proper insurance services and
facilities throughout Tanzania; and
(b) conduct its business without discrimination, except
upon any grounds as are essential in the normal and
proper conduct of insurance business. PART IV
LIFE INSURANCE
8.–(1) The Corporation may carry on life insurance business
in Tanzania. (2) For the purposes of subsection (1)-
(a) insurance business shall be carried on in Tanzania if
in the course of that business, an insurance contract
is concluded, whether in the United Republic or
elsewhere, under which-
Cap. 38
Duty of
Corporation to
provide adequate
insurance
services
Corporation
may carry on
life insurance
business
Act No. 18 of 1996 s. 140

r which-
Cap. 38
Duty of
Corporation to
provide adequate
insurance
services
Corporation
may carry on
life insurance
business
Act No. 18 of 1996 s. 140

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THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E. 2023]
(i) provision is made for the payment of a premium
in Tanzania or in Tanzanian currency;
(ii) provision is made for the payment of a benefit in
Tanzania or in Tanzanian currency; or
(iii) the proper law of the policy is the law of the United
Republic; and
(b) the collection of premiums, adjustment and satisfaction
of claims and other servicing of subsisting policies and
the assuming of new obligations pursuant to a term of
a group policy subsisting on the effective date shall not
constitute the carrying on of life insurance business. (3) A person who contravenes the provisions of subsection
(2) commits an offence and on conviction shall be liable to a
fine not exceeding twenty thousand shillings. 9. This Act shall not be construed so as to affect in any respect
the validity or the terms of, or the conditions or obligations
contained in, any life policy which is subsisting on the effective
date.

in any respect
the validity or the terms of, or the conditions or obligations
contained in, any life policy which is subsisting on the effective
date.

10.–(1) The Minister may, by notice in the Gazette, direct
that a person, who before the effective date carried on life
insurance business in Tanzania shall in the course of a period
of twelve months specified in the said notice invest in approved
securities or deposit with the National Bank of Commerce
within Tanzania a specified proportion of the premium income
received by that person during the said period in respect of his
subsisting obligations under his former life insurance business
in Tanzania. (2) A notice issued under subsection (1) shall express
the specified proportion referred to in that subsection as a
percentage of the net premium income remaining after the
deduction from the total premium income received of the
legitimate relevant business expenses of the person concerned
during the specified period and all payments made in respect
of claims under or surrenders of life policies or loans made on
the security of life policies. Subsisting life
policies
Investment of
premium income

t
of claims under or surrenders of life policies or loans made on
the security of life policies. Subsisting life
policies
Investment of
premium income

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THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E. 2023]
(3) Except as may be authorised by the Minister and subject
to any conditions which the Minister may impose and subject
to subsection (4)-
(a) no investment or deposit, or interest in it, made by
any person pursuant to subsection (1) may be realised,
pledged, mortgaged or otherwise used as a security,
sold, transferred or otherwise disposed of or dealt with;
(b) the income deriving from the investment or deposit
shall be and remain invested or deposited as if it were
premium income required to be invested or deposited
under subsection (1);
(c) any return of capital or other capital payment relating
to or deriving from the investment or deposit shall be
and remain invested or deposited as if it were premium
income required to be invested or deposited under
subsection (1).

nvestment or deposit shall be
and remain invested or deposited as if it were premium
income required to be invested or deposited under
subsection (1).

(4) When the assets of a person, who before the effective
date carried on life insurance business in Tanzania, which are
invested in approved securities or deposited within Tanzania
and are set aside and freely available only for the purpose
of meeting liabilities arising from that person’s former life
insurance business in Tanzania, exceed one hundred and ten
percent of a valuation of the liabilities in respect of the whole of
that person’s former life insurance business in Tanzania made
by an actuary approved by the Minister, the provisions of this
section shall not apply to premium income or other assets so
in excess. (5) When the liabilities of a person who before the effective
date carried on life insurance business in Tanzania have been
satisfied, no obligation shall attach under this section to any
remaining assets on such person. (6) A person who contravenes or fails to comply with any
or the provisions of this section commits an offence and on
conviction shall be liable to a fine not exceeding one hundred
thousand shillings.

ith any
or the provisions of this section commits an offence and on
conviction shall be liable to a fine not exceeding one hundred
thousand shillings.

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THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E. 2023]
11.–(1) For the purposes of section 10, in reckoning premium
income, no account shall be taken of, and no liability shall
attach under that section in respect of, the investment of
premium income received on account of any life policy,
the benefit under which is expressed in it to be payable in a
currency other than Tanzanian shillings. (2) For the purposes of section 10, in reckoning a person’s
liabilities in respect of the whole of that person’s former life
insurance business in Tanzania an account shall be taken
of liabilities under a life policy, the benefit under which is
expressed in it to be payable in a currency other than Tanzanian
shillings. PART V
INSURANCE OTHER THAN LIFE INSURANCE
12. This Part shall have no application to the carrying on of life
insurance business. 13. [Repealed by Act No. 18 of 1996 s. 40.]
14.

LIFE INSURANCE
12. This Part shall have no application to the carrying on of life
insurance business. 13. [Repealed by Act No. 18 of 1996 s. 40.]
14.

This Act shall not be construed so as to affect in any respect
the validity or the terms of or the conditions or obligations
contained in any subsisting insurance contract. 15.–(1) The Minister may, where in his discretion he considers
it necessary for the protection of existing or prospective policy
holders, by order published in the Gazette prohibit an insurer
from continuing to carry on insurance business in Tanzania as
from a date specified in the order. (2) Where the Minister proposes to make an order under
subsection (1), he shall first notify the insurer in writing of his
intention to do so and in general terms his reasons for so doing
and he shall invite the insurer to show cause why the order
should not be made. Policies payable
in foreign
currency
Application of
Part IV
Repealed
Subsisting
policies
Minister may
restrict insurance
business in
interim period

e. Policies payable
in foreign
currency
Application of
Part IV
Repealed
Subsisting
policies
Minister may
restrict insurance
business in
interim period

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THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E. 2023]
(3) Within seven days of the receipt of a notice given
under subsection (2), an insurer may make submissions or
representations in writing showing cause why an order should
not be made under subsection (1) and the Minister shall not
make that order until he has first considered any submissions
or representations made within the time by or on behalf of the
insurer. (4) A person who acts in contravention of an order made
under subsection (1) commits an offence and on conviction
shall be liable to a fine not exceeding one hundred thousand
shillings. PART VI
GENERAL POWERS OF MINISTER FOR
PROTECTION OF POLICY HOLDERS
16.–(1) The Minister may, by notice in writing, demand from
an insurer, or from a person who, in the case of life insurance
business was an insurer prior to the effective date, any
document, information or explanation relating to any matter
connected with his business or transactions or otherwise.

prior to the effective date, any
document, information or explanation relating to any matter
connected with his business or transactions or otherwise.

(2) A person who having been served with a demand under
subsection (1) without lawful excuse neglects or refuses to
comply with the demand commits an offence and on conviction
shall be liable to a fine not exceeding ten thousand shillings. (3) Where a person who has been served with a notice
under subsection (1) supplies to the Minister a document,
information or explanation which is false in any material
respect, that person and every other person who took part
in the preparation or issue of or who signed the document,
information or explanation, shall, unless he proves, the onus
of which shall lie on him, that he had no knowledge of the
falsity when the document, information or explanation issued,
commit an offence and on conviction shall be liable to a fine
not exceeding ten thousand shillings and in the case of an
Minister
may require
information

mit an offence and on conviction shall be liable to a fine
not exceeding ten thousand shillings and in the case of an
Minister
may require
information

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THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E. 2023]
accused who is an individual in addition to the fine, shall be
liable to imprisonment for a term not exceeding two years. 17.–(1) The Minister may, where he considers it necessary
for the protection of existing or prospective policy holders,
by notice in writing require that an insurer or a person who
in the case of life insurance business was an insurer prior to
the effective date, to deposit with the Minister any approved
securities and other assets which the Minister shall deem
sufficient to meet the liabilities of that insurer or other person’s
insurance business in Tanzania. (2) A person upon whom a notice has been served under
subsection (1) who without lawful excuse, neglects or refuses to
comply with that notice commits an offence and on conviction,
shall be liable to a fine not exceeding twenty thousand shillings.

eglects or refuses to
comply with that notice commits an offence and on conviction,
shall be liable to a fine not exceeding twenty thousand shillings.

18.–(1) The Minister may, where he considers it necessary
for the protection of policy holders, by order published in the
Gazette, appoint a receiver of the assets and liabilities of an
insurer or a former insurer. (2) The Minister may make regulations prescribing the
powers and duties of receivers appointed under subsection (1)
and these regulations may prescribe penalties not exceeding
ten thousand shillings for offences against the regulations. PART VII
MISCELLANEOUS PROVISIONS
19. Where an offence under this Act is committed by a company,
co-operative society or other body of persons, corporate
or unincorporated, is proved to have been committed with
the consent or connivance of, or to have been facilitated by
any neglect on the part of any director, chairman, manager,
secretary or other officer of the company, co-operative
society or other body of persons he, as well as that company,
Minister may
require deposit of
securities
Minister may
appoint receiver
Responsibilities
of directors,
managers, etc. Act No. 2 of 2000

that company,
Minister may
require deposit of
securities
Minister may
appoint receiver
Responsibilities
of directors,
managers, etc. Act No. 2 of 2000

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THE INSURANCE (VESTING OF INTERESTS AND REGULATION) ACT [CAP. 349 R.E. 2023]
co-operative society or other body of persons, is deemed to be
guilty of the offence and shall be liable to be proceeded against
and punished accordingly.
20. The Minister may make regulations for carrying out or
giving effect to the purposes and provisions of this Act and
those regulations may prescribe penalties not exceeding ten
thousand shillings for offences against the regulations.
Regulations
Act No.
2 of 2000