Motor vehicle insurance (for example, car, motorcycle, bus, etc.) is extremely important for various reasons, including:

Financial Protection

·      If your vehicle is involved in an accident, insurance can cover repair costs or compensate for damage to your vehicle and even someone else's property.

·      It helps you avoid unexpected large expenses, especially in the case of serious accidents.

Legal Requirement

·      In many countries (including Tanzania), having motor vehicle insurance is a legal requirement. You cannot legally operate a vehicle without insurance.

·      Not having insurance can lead to fines, vehicle impoundment, or even imprisonment.

Protection for Others; Insurance also protects other people who may be affected by your vehicle — for example, if someone is injured or their property is damaged in an accident you caused.

Protection Against Theft or Disasters; Comprehensive insurance covers your vehicle against theft, fire, floods, or other natural disasters.

Peace of Mind; Having insurance gives you greater confidence and peace of mind on the road, knowing that you have financial support in case something unexpected happens.

To receive compensation from a motor insurance policy following an incident (such as an accident, theft, or fire), there are important steps you must follow. These steps ensure that your insurance company acknowledges and processes your claim effectively:

1. Report the Incident Immediately

• Contact your insurance company as soon as the incident occurs.
• Early notification allows the company to begin the investigation promptly.

2. Report to the Police

• In the case of an accident or theft, report the matter to the nearest police station within 24 hours (or sooner).
• You’ll be given a Report Book (RB) number or an official police abstract.

3. Collect Evidence

• Take clear photos of the vehicle damage, the scene of the incident, and any other involved vehicles (if it's an accident).
• Witnesses can be helpful in clarifying what happened, especially if there’s a dispute.

4. Fill Out a Claim Form

• Visit your insurance provider's office or website to obtain and complete the claim form.
• Make sure all information provided is accurate and truthful.

5. Submit Required Documents

You may be required to provide the following documents:

• A copy of the insurance policy (cover note).
• Police report or abstract.
• RB number or police abstract form.
• Valid driver’s license.
• Vehicle registration card (logbook).
• Repair receipts (if repairs have already been made).
• Evidence of the incident (photos, videos, witness statements).

6. Damage Assessment

• The insurance company will send an assessor to evaluate the damage.
• They may direct you to an authorized garage for the inspection or repairs.

7. Wait for the Insurance Company’s Decision

• Once the investigation is complete, the insurance company will decide whether compensation will be granted, how much will be paid, and when.
• If you accept the compensation amount, payment is made either directly to the garage or to the vehicle owner.

8. Receive Payment

• Payment may be made in cash (if you’ve already repaired the vehicle) or directly to an authorized garage.
• Some insurers may also use bank transfers.

⚠️ Important Notes:

• Do not make major repairs before the insurance company inspects the vehicle (unless it’s necessary for immediate safety).
• Delaying the report may result in your claim being denied.
• Giving false information can lead to denial of compensation or legal action.