INTRODUCTION

The term "Insurance" has been defined as; "Any contract, by which any party, for a valuable
amount known as premium, assumes risks or liabilities that rest upon the other pursuant to a
plan for the distribution of such risks, is a contract of insurance, what ever the form it takes or
the name it bears”1. Contract of insurance bears all essential elements of a binding contract
such as offer, acceptance, competence, consideration, legality and free consent. The contract of
insurance also has some features additional to the mentioned ones above, which distinguish it
from any other kinds of contracts as that you are conversant with 2.

Whenever there are human beings, there are various risks associated with their productive
activities since the day to day activities of human beings necessarily involve risks. In better
words we can say that these risks are inherent in the society; i.e. they are part and parcel of a
human society. Usually the nature of productive activities a particular society engages itself in
will determine the extent of risks inherent in that society and these risks usually develop in
direct proportions to the development of this society.3

MAINBODY

It follows therefore that, the risks that were common during the communalism period are in no
way similar to those that are in present day society. In the primitive societies they used
traditional methods of handling the risks, but to day, the modern insurance employs economic
devices to handle risks. The law of insurance is all concerned with providing rules and principles
on how risks in the society can be handled.

The following are the main laws which provides for the rules and general principles which
regulate insurance matters in Tanzania;

1
Elliott, C and Quinn, F. (2005). Contract Law. 15th Ed. Pearson Longman.

2
Macaura vs. The Northern Assurance Company [1925] AC 619

3
Vance W.R, (1930) Vance on Insurance, 3rd Ed. The West Publishing Company, Washington at pg. 82
The Insurance Act; the parliament of Tanzania in 2009 decided to enact the act of Insurance
Act4 which was main objected towards being the main law to regulate insurance matters in our
country . In order to ensure critical observation of insurance matters in our country , the act
established the government agency known as the Tanzania Insurance Regulatory Authority
(TIRA), this regulatory authority is established under Section 5 of the Insurance Act 5which in
one or another it's the main government agency which regulates all insurance matters in
Tanzania. The law governing insurance business in Tanzania is centered on a regulatory
authority. The law sets a regulatory legal regime the centered of which is the chief executive
officer of the authority who is known as the Insurance commissioner who is appointed by the
state. On top of the commissioner is the minister responsible for insurance matters at that
time .

The Insurance Regulation6; these regulation were enacted in 2009 per requirements of section
167 of the Insurance Act7. The main objective of enacting this regulation was to provide for the
the procedures , requirements and powers vested upon the insurers ,Insurance Agents,
Insurance Brokers, Risk Managers, Loss Adjusters, Assessors, Insurance Surveyors, Claims
Settling Agents, Private Investigators and Actuaries. The Regulation also is objected at providing
special forms used in insurance matters as they are stipulated in the first and second schedule
of the regulation.

The National Healthy Insurance Fund Act 8, this act was enacted by the parliament in 2015 and
it was aiming at providing for the establishment of the government health insurance agency
known as the National Healthy Insurance Fund ( NHIF) and to provide for the procedures, rights
and obligations of all insurers and insureds of the NHIF Fund . The act also provides for the
compulsory membership of all government employees to this fund.

4
CAP 10 R:E 2009
5
The Insurance Regulation of 2009

6
Ibid

7
The Insurance Regulation of 2009

8
CAP. 395 R:E 2015
CONCLUSION

Generally; An insurance contract is essentially personal, each party having in view, the
character , credit and conduct of the other , hence it should be noted that performance of the
insurers promise does not in a normal face affect the insured person’s legal relations with the
subject matter of the insurance, including the thing in respect of which the policy is taken up.In
other words the risk only attaches to the insured party and not to the insured subject matter; it
does not run with the subject matter, but it runs with the insured person.

REFERENCE
BOOKS
Elliott, C and Quinn, F. (2005). Contract Law. 15th Ed. Pearson Longman.

Vance W.R, (1930) Vance on Insurance, 3rd Ed. The West Publishing Company, Washington.

STATUTES

The Insurance Act CAP.10 R:E 2009.

The Insurance Regulation of 2009.

The National Healthy Insurance Fund Act CAP.395 R:E 2015.

CASES

Macaura vs. The Northern Assurance Company [1925] AC 619.