NMB Bank Plc and Strategis Insurance introduced a groundbreaking product yesterday, aimed at easing the financial burden on transporters by eliminating the need to pay a 3,000 USD (approximately Tsh. 7.03 million) guarantee to container owners. Strategis Insurance Tanzania Limited, established in 2002 and licensed by the Tanzania Insurance Regulatory Authority, is a pioneer in providing accessible insurance services in Tanzania.
The "Container Insurance Guarantee Scheme" offers a more cost-effective alternative for transporters, allowing them to insure containers through both companies at a slightly lower price. Previously, businesses and transport companies were required to pay around $3,000 to container owners as a guarantee, in addition to property insurance covering compensation for property loss during road or rail transportation.
The Insurance Scheme will:
· Ensure the safety of the container
· Eliminate the need for carriers to place a deposit for each container
· Cover costs arising from the delay in returning the container
· Pay for the costs of damage to the container
· Damage to property caused by the container (third-party damages).
According to Mr. Martin Massawe, Head of Bancassurance at NMB, the new product will benefit both individuals and companies, as it eliminates the need for container deposits and instead offers insurance at a marginally lower cost. The product will cover those who transport cargo using 10, 20, and 40-foot containers. Flora Minja, Acting Group CEO for Strategis Insurance Tanzania Ltd, highlighted the company's long-standing reputation for innovation and customer satisfaction in the Tanzanian insurance market. The Container Insurance Guarantee Scheme is a direct result of Strategis Insurance's commitment to innovation, she said.
Mr. Abubakar Ndwata, Director of Supervision from Tanzania Insurance Regulatory Authority (TIRA), praised the initiative at the event, expressing his belief that it will offer long-term solutions to some of the challenges hindering the growth of the transport sector. By expanding access to insurance for all stakeholders in the transport sector value chain and ultimately reducing transportation costs, the new product will contribute to the economic development of Tanzania, he said.