National Insurance challenged to account for 5pc of GDP

15Aug 2019
The Guardian Reporter
Dar es Salaam
The Guardian
National Insurance challenged to account for 5pc of GDP

INSURANCE industry should account for at least 5 percent of the country’s gross domestic product compared against the current less than a percent in a market insurance cover is largely considered as a luxury.

New NIC Managing Director, Dr Elirehema Doriye (R) receiving official hand over documents from the corporation’s immediate former MD, Sam Kamanga in Dar es Salaam last week.

Deputy Permanent Secretary at Ministry of Finance and Economic Planning, Dr Khatibu Kazungu said in Dar es Salaam last week when officiating a hand over ceremony of National Insurance Corporation’s Managing Directorship between, Sam Kamanga and Dr Elirehema Doriye that efforts should be made to make the public understand that insurance cover is a necessity.

“Let us sensitise the public on the importance of having an insurance cover to protect lives and property,” Dr Kazungu said while pointing out that NIC’s new management should come up with plans and strategies to grow its coverage of the market.

He stated that if well executed by covering areas such as agriculture, livestock and fisheries where the bulk of the country’s producers are, NIC will also help to increase government revenue in terms of premiums paid but also taxes.

“But another area where you need to target aggressively is compete to offer insurance cover in all major strategic state funded infrastructure projects,” the Deputy PS added noting that under President John Magufuli multibillion infrastructure projects are being implemented.

Briefing Dr Kazungu on NIC’s performance, Board Chairman, Laston Msongole said so far the state owned corporation touches the lives of many Tanzanians in terms of insurance coverage with encouraging results in recent years.

“It’s now up to the incoming Managing Director to further propel this corporation continue dominating the market,” Msongole said noting that earlier plans had put NIC among companies to be privatised because of poor performance.

In a vote of thanks, Dr Doriye pledged to pilot the corporation to new heights saying his predecessor had done some commendable job. “This corporation operates commercially hence I call upon all staff members to continue working hard so that we contribute significantly to gross domestic product,” he noted.

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