Insurance is a means whereby the losses of the few are distributed among the many. It is a pool to which a large number of persons contribute and out of which those who suffer misfortune are compensated. Apart from insurance laws, the process of compensation is regulated by insurance policies, which hold a lot of terms and conditions as well as exclusions. In the terms of insurance policies, there might be confusions and misunderstandings regarding the application of conditions and exclusions among the insurer and the insured as well as third party victims, which finally lead to complications in the insurance compensation process.[i] Mainly, the validity and effect of exclusions and conditions towards the insured and third-party victims seems to be confusing practically. In addition, the rule of interpretation of policy conditions and exclusions is not clearly noted in the Tanzanian insurance laws, which hinders the uniform application of insurance policies and laws in the judicial system. The article examines the law relating to motor vehicle insurance in Tanzania. The article discusses the concept of motor vehicle insurance, types of motor vehicle insurance, rights and obligations of parties and the legal framework of motor vehicle insurance.
[i] Tanzania Insurance Regulatory Authority, T. (2010), “Annual Insurance Market Performance Report,” Dar-es-salaam: Tanzania p 6-9.