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# Why Kariakoo victims face insurance uncertainty

## What you need to know:

**Amended law has not yet come into effect because it requires the minister to draft regulations specifying the assets that must be insured and the types of insurance coverage involved**

**Dar es Salaam**. People affected by the building collapse in Kariakoo, Dar es Salaam, could potentially receive millions in compensation if the Insurance Act, CAP 394 were to be fully implemented, analysts say.

The government amended the Insurance Act, CAP 394, through the Finance Act 2022, to expand mandatory insurance to include public markets, commercial buildings, imported goods and marine vessels.

However, since then, the law has not been implemented due to the lack of regulations to govern it.

A four-storey building collapsed last Saturday in the commercial hub of Kariakoo, killing at least 20 people.

According to the government, 88 people were rescued by that time, and others remained trapped in the rubble.

Tanzania Insurance Regulatory Authority (Tira) principal legal officer Jamali Mwasha told *The Citizen* on Wednesday that the law has not yet come into effect because it requires the minister to draft regulations specifying the assets that must be insured and the types of insurance coverage involved.

She said the draft regulations were ready, and efforts were underway to broaden the scope of public input to align them with best practices and ensure they reflect the people’s needs.

“Awareness campaigns have been conducted through associations and institutions, and we are now evaluating final opinions, which focus mainly on the private sector,” she said.

The Head of the Communications Unit at the Ministry of Finance, Mr Ben Mwaipaja, told *The Citizen* on Wednesday that he would address the matter by consulting the relevant departments to determine their progress.

For his part, an insurance expert and former chairman of the Association of Insurers (ATI), Mr Khamis Suleiman, expressed sympathy for those affected but stated that there would be no insurance compensation because the law has not been implemented, despite being reviewed in 2022.

He pointed out that the delay lies with the government, as Tira has already addressed the issue. What is now needed is a framework for implementing these regulations, but it has not been released.

“If this is not done, disasters will occur and people will suffer without insurance compensation.”

According to him, the number of deaths and injuries is significant, and many businesses have been lost.

“Insurance is about risk management, but we do not see efforts being made to mitigate damages; many buildings lack proper emergency exits.”

Mr Suleiman stressed the need for the government to act quickly.

“For example, if a building owner took out a cover worth Sh1 billion, they would pay a premium of Sh1.8 million plus VAT per year. This could have helped compensate victims and recover part of their losses.”

He also noted that housing insurance is not expensive compared to other types, such as motor vehicle, marine, or aviation insurance. “The key is to reduce the burden of loss for citizens, keeping these regulations on the desk for two years is unacceptable while lives and property are being lost.”

The Africa College of Insurance and Social Protection (ACISP) Director of International Relations, Research and Consultancy, Dr Anselm Anselm, noted that while drafting a law can take time, preparing regulations should be completed within a year. However, the government has not yet recognised the urgency.

Dr Anselm said that an evaluation showed the law’s implementation could significantly impact the insurance sector.

For example, insurance premiums on buildings alone could reach Sh500 billion, accounting for 30 percent of all insurance premiums. Increased awareness would build trust and encourage people to take out insurance in other areas.

“Our problem is that we only act quickly when disasters happen. This law was created after incidents like market fires, but we forgot until another disaster occurred. The government should finalise the process, draft the regulations, and begin implementation,” he said.