Motor Insurance

The range of commercial vehicles insured (and the associated risks) vary widely and include:

• Cars used in connection with a business
• Goods-carrying vehicles: all the different types of vehicles designed to carry goods. Classified by insurers for risk assessment purposes either by their carrying capacity or their plated weight. The goods carried are not covered by the motor policy, cover instead being provided under a separate goods in transit policy
• Passenger-carrying vehicles: includes minibuses, coaches and buses. The main exposure for insurers comes from the risk of bodily injury to passengers.
• Hire vehicles. These fall into these categories:
• Private hire: the hiring of a car with driver from the operator’s premises
• Public hire: taxis which can be hired on the streets or at recognised taxi stands
• Self-drive hire: the hire of a vehicle, such as a car or van, without a driver
• Agricultural and forestry vehicles: such as tractors, combine harvesters, threshing and baling machines. These vehicles will not usually be used a great deal on the roads and therefore present a lower risk to insurers
• Vehicles of special construction (special types): includes various types of vehicle also used as a tool of trade; such as ambulances, mobile shops, cranes and fork-lift trucks. The third party working risk is not covered by the motor policy, cover instead being provided by the insured’s public liability or engineering policies.

There are two distinct types of policy that are common in the commercial vehicle insurance market:

• Fleet. This is where a number of vehicles owned by the same company (usually a minimum of 10) are insured on a single policy. Fleet policies can consist of private cars, goods-carrying vehicles or other types or a mixture of different types. A number of insurers who offer ‘mini-fleet policies, which are for a minimum of five vehicles.
• Non-fleet This is the term used to describe policies which insure individual or fewer than ten vehicles (or five if suitable for a mini-fleet cover).

Insurers also offer specialist motor trade policies. These are designed primarily for garages and similar businesses which sell and/or service and repair vehicles. In addition to cover for their own vehicles, they also have a variety of other needs (such as for damage to customers’ vehicles, test drives and breakdown recovery).

Vehicle Types

• Trucks & Lorries

This covers all the carrying own goods (comprehensive), third party fire and theft, general cartage, and the third party only.

• Motorclyes

In the insurance world the term motor cycle includes any kind of cycle propelled mechanically and includes mopeds, there are a wide range of risks as in motor vehicles.

Standard cover

The standard of comprehensive motor cycle policy is much the same as that of the private motor policy, therefore we need only to identify the main difference between the motor cycle policy and private policy. And this can be explained in the following exceptions as below:

• No cover provided for the theft of accessories or spare parts unless the motor cycle itself is stolen at the same time.
• There is no personal accidents benefits, medical expenses or personal effects cover.
• The liability section general indemnifies the insured or his personal representatives in the event of the insured death, if others are permitted to drive the motor cycle then would also be indemnified as would users of motor cycle for social and pleasure purpose.
• Passenger-carrying

This covers all the comprehensive package and third party premium package for all the public taxis, private hire, tour operators, and buses- daladala within city, buses- up country, buses- private, and buses for schools.

The only difference for the comprehensive coverage for this with the private vehicles is that the motor parts attached or detached the claim will be adhered too in the private vehicles, but for the commercial vehicles you’re paid only when the parts were stolen while attached to the vehicle.

• Trailers

Since a trailer can be pulled by different trucks, they carry independent insurance. Cover can be Comprehensive or Third Party insurance depending on the age of the trailer, over or under 10 years old.

• Oil Tankers

This also includes the comprehensive, third party fire and theft, and the third party only cover; it covers all the steel tankers below 10 years, aluminium tankers below 10 years, and tankers over 10 years old.

But also the insurance cover the towing of trailers under third party liability section of the policy as in the trailers as explained above.

• Special Type

This covers all the comprehensive and third party premium for all the special vehicles such as the farm tractors, forklifts, graders, cranes, excavators, and the ambulances.

In the insurance world the term motor cycle includes any kind of cycle propelled mechanically and includes mopeds, there are a wide range of risks as in motor vehicles.

Standard cover

The standard of comprehensive motor cycle policy is much the same as that of the private motor policy, therefore we need only to identify the main difference between the motor cycle policy and private policy. And this can be explained in the following exceptions as below:

• No cover provided for the theft of accessories or spare parts unless the motor cycle itself is stolen at the same time.
• There is no personal accidents benefits, medical expenses or personal effects cover.
• The liability section general indemnifies the insured or his personal representatives in the event of the insured death, if others are permitted to drive the motor cycle then would also be indemnified as would users of motor cycle for social and pleasure purpose.

Comprehensive

Comprehensive insurance provides full coverage for your vehicle against own damage, theft, fire, and damages to other people’s properties and/or bodily injuries. With comprehensive cover you will receive compensation for the damage to your own vehicle even if you are at fault for the accident, per the terms of the policy.

Benefits Include:

• Stolen and not recovered
• Damage either during attempted theft or while it is stolen
• Includes the cost of repairs of the insured if their vehicle is damaged by fire, lightning, and explosion
• Legal costs incurred in the defence of a claim
• Third party property damage (limit)
• Indemnity to passengers, employers or business partners should they held responsible for an accident etc.

Comprehensive insurance for private vehicles in Tanzania also comes with several nice extensions/add on covers to enhance the coverage at nominal additional premiums:

• Loss of Use
• Excess Buy Back
• Extension of geographical limits beyond Tanzania/East Africa
• Card Tracking Device discount
• Fleet discounts, as applicable by the regulations guidelines.

THIRD PARTY FIRE & THEFT

Third Party Fire & Theft insurance provides the same level of cover as Third Party but with added cover if your car is stolen or damaged by fire. The insurance will pay up to the agreed value to repair or replace the insured vehicle if your vehicle is stolen or completely damaged by fire risks

This cover does not protect your vehicle if it is involved in accident. If it is not your fault the third party who may have caused the damages to your vehicle, will compensate you if the court awards the judgement to your favor. If you are not at fault, the insurance of the responsible party will cover your costs.

Covers:

• Any legal liability in respect of bodily injury or death to third parties.
• In respect of third party property damage.
• Indemnity for the liability of passenger.
• Legal costs to defend a claim.
• The cost of repair or compensation of the insured if the vehicle is stolen
• Damaged during theft or attempted theft Damage by fire, lightning or explosion.

Benefits Include:

• Includes the cost of repairs of the insured if their vehicle is damaged by fire, lightning, and explosion.
• Damage either during attempted theft or while it is stolen.
• Stolen and not recovered.

THIRD PARTY ONLY

This is the minimum level of cover required by Tanzania law. If you, the insured, have an accident and you are at fault, your Third Party policy will only compensate the other parties involved. They will be compensated for damages to their vehicle(s), properties, or any injuries that they sustain. You will not receive any compensation for damage to your car or injury to the driver or owner of the vehicle.

Third Party insurance will also not compensate you for loss or damage to your vehicle due to fire or theft. If you are not at fault, the insurance of the responsible party will cover your costs. The cover you get with Third Party insurance is pretty limited and you still leave yourself open to significant losses.

Covers:

• Any legal liability in respect of bodily injury or death to third parties.
• In respect of third party property damage.
• Indemnity for the liability of passenger Legal costs to defend a claim.

Benefits Include:

• Cover for vehicle whilst on the road or in public place but remaining within the territorial limits.
• Third party property damage (limit) for private cars.
• Indemnity to anyone who is driving or using the vehicle on the insured’s order or permission unless as is very common driving is restricted to named individuals or husband and wife only.
• Indemnity to passengers, employers or business partners should they held responsible for the accident.
• Indemnity for accidents which occur where the insured is driving a car that does not belong to them. Note all insurers provide this cover; those that they do have agreed to introduce market wording o that the extension of cover is not used for securing the release of vehicle seized by ht police (since this could have effect of putting uninsured vehicle beck on the road)