THE INSTITUTE OF FINANCE MANAGEMENT.

FACULTY OF INSURANCE AND SOCIAL PROTECTION.

DEPARTMENT OF INSURANCE AND RISK MANAGEMENT.

BACHELOR OF SCIENCE IN INSURANCE AND RISK MANAGEMENT.

SUBJECT: MOTOR INSURANCE (IRUO7404).

INDIVIDUAL ASSIGNMENT.

NAME: ELIA H MWAKANYAMALE

REG NO: IMC/BIR/18/96864

STREAM: BIRM 2A.

QUESTION ONE.
In details, describe the historical development of motor vehicle, motor vehicles regulations and motor insurance policies

1
 Motor vehicle, Refers to the self-propelled machines generated from mechanical power, motor vehicles used for different
activities associated with various risks examples of uses of motor vehicles includes transportation of goods (cargo), carrying
passengers, etc. The historical development of motor vehicles in the world are divided into different phases that’s from 17 th Century,
18th Century, 19th Century, 20s Century. For a machine to be propelled needs internal combustion engine/motor in which during the
17th century there was steam powered vehicles used to transport passengers (human) and the steam propelled vehicles were used until
19th century includes cars, buses using steams, as a time goes different people discover the internal combustion of engine/motor using
hydrogen, gasoline powered vehicles using Daimler engines invented by Emile and his friend Almand Peugeot, diesel which was
invented by Rudolf Diesel for a machines to propel itself in 1892, petrol powered vehicles, and electricity vehicles three wheeled in
Germany, also during 1879 Karl Benz designed his first car engine using the internal combustion for powering the motor vehicle to
run, later on he invented the internal combustion flat engine. Motor vehicles became more popular during 20 th century in which the
economy starts to depend on use of motor vehicles and most of motor vehicles used currently are internal combustion engine vehicles,
fueled engine, electric vehicles which became commercially available during 2000s were it used to perform different activities with a
varieties of risks which lead to introductions of regulations for motor vehicles all over the world as its explained below.

Motor vehicles regulations, Refers to the rules made by authorities in order to control the motor vehicles conducts. During
1960s in United states passed the standards and regulations that’s delegates the vehicles regulations for providing through legislation.
Early during the automobile era (earlier 1900s) states gave the recommendations to automobiles manufacturers that to ensure the
safety standards a vehicles must consists of brakes, wipers and later become adopted to all automobile manufacturers to some of
states, In 1926 the states decided to have uniform vehicle code to replace some of the state rules includes lightning type, tires,
reflectors, mirrors that a motor vehicles should have. During the use of highways in United States (1950s) there was a large number
of people using automobile as a travel hence as we know that motor vehicles comprises of some risks, so due to use of highway were
existence of many accidents which lead too death of people the states decided to pass some bills to law includes seat belt regulations
and enacted the highway safety Act in 1966 mandated that each states must meet federal standards includes establishing the accident

2
record system, traffic control. Also the states identified that the key source of air pollution is air pollutants from automobiles includes
carbon monoxide, therefore the states decided to implement the motor vehicles standards under environmental protection Act so as to
regulate the vehicles emissions includes establishment diagnostic system that will be used to detect the emissions system and the
equipment. Thereafter the state been able to establish and implement different safety standards and maintains the records using
accident record systems, also the law makes to show or provide the certification of vehicle permanently fixed and making sure that all
motor vehicles manufacturers are required to test the vehicles before starting selling them so as to enable manufacturers to identify the
errors and reduce unexpected accidents rises from a car failure. In Europe the motor vehicles regulations is based on government
approval by member of states, currently globally we use almost the same regulations of motor vehicles but same differ due to different
factors includes geographical area, technological factors. In Tanzania the motor vehicles regulations were established under Road
Traffic Acts which apply in Mainland Tanzania except for motor vehicles owned by Government, TPDF, International organizations
this is according to Road Traffic Act of 1973. According to part(ii) of the road traffic Act that’s based on registration of a vehicle by
the owner includes cars, trailers attached to motor machines and during the registration process the registrar must consists of all
supportive documents or requirements which are required by the authorities. Not only that but also Act tries to implement some of
regulations that used to conduct the driver and other offences includes high speed, careless driving and any other which may lead to
accident/death as its explained in part v hence some of the offences in such Act are used as to exclusion in motor insurance during the
time of loss. Therefore, motor insurance regulations are enacted for the aim to reduce/avoid accidents, to make sure that all motor
vehicles are registered hence regulations are used during the purchases of motor insurance policies.

Motor insurance policies, Refers to the insurance policy that covers the effects resulting from an accident or event to insured
vehicle based on type of cover that’s comprehensive cover, third party cover and classification of a vehicle that’s is private,
commercial vehicle etc. Lately in 1890s motor industry in British started to grow wider and insurance policy became issued firstly in
1898 due to existence of accidents and its consequences caused by the negligence of drivers early in 1900s soon after the rapid
increase in the number of vehicles in Britain causes to establish the standards and regulations as its explained on motor vehicles

3
regulations history therefore road traffic Act was enacted in 1930 in which requires the owners of vehicles to insure the liability to
passengers, Later Germany enacted Act on the implementation of compulsory insurance for motor vehicle owners popular known as
CTP (1939) which is mandatory in all states and territories in which it didn’t provide cover for own damage and every vehicle owner
became free to take out a comprehensive insurance policy which covers damage to vehicles, theft of vehicles and can cover the
damage caused to other vehicles. In Hungary there must be mandatory third party insurance cover for all vehicles while the visitors
with vehicles are required to buy a policy at the border. In Tanzania the motor vehicles insurance policies are quoted as its explained
under motor vehicles Act Caps includes motor vehicles insurance Act of 1958,7 of 1966, 23 of 1982, 9 of 2011 tries to explain the
third party risks in which a subject to the provision it shall not be lawful for any person to use a motor vehicle on public road unless
there is in force in relation to the user of the motor vehicles, the requirement in respect of policies must be in respect of the Act
includes must be issued by a person and the policy shall be of no effect for the purposes of this Act until is issued by the insurer in
favor of person by whom the policy is affected.

4
REFERENCE

 motor vehicles insurance (third-party risks) act and subsidiary legislation revised edition showing the law as at 1 January 2013 authorized by
Ln. so/ 1994

 Motor insurance by CHANYA, CS.

https://www.motor.com/chrome/?
brand=CHZN&utm_source=google.com&utm_medium=materialcallout&utm_campaign=search&utm_content=switch-to-chrome-built-for-
windows-hideannoying-ads&utm_keyword=CVFX