NMB pays 438.4m/ to 12 Kariakoo fire gutted businesses

28Jul 2021
The Guardian Reporter
The Guardian
NMB pays 438.4m/ to 12 Kariakoo fire gutted businesses

OWNERS of 12 businesses that were gutted down by fire at Kariakoo Market in Dar es Salaam two weeks ago have received compensation for the destruction worth 438.4m/-.

NMB Bank Plc’s Head of Insurance Business, Martin Massawe speaks in Dar es Salaam yesterday after presenting a cheque as compensation to victims of Kariakoo Market inferno which gutted down businesses a fortnight ago. Photo courtesy of NMB. 

Speaking during a handing over ceremony held in Dar es Salaam yesterday, NMB Bank Plc’s Head of Insurance Business, Martin Massawe said the compensation follows decision by the business owners to insure with the bank which partners with Reliance Insurance Tanzania Limited.

“We are presenting cheques to victims of the inferno who had taken decision to insure with us their property through their loans or direct property insurance,” Massawe said while congratulating the 12 business owners for their courage to insure against risks.

He urged Tanzanians in general to learn a lesson from the Kariakoo Market disaster which has made many business owners poorer because they now need to find new capital to restart their destroyed businesses.

“I urge Tanzanians, not only business owners to learn a lesson from this disaster because it can happen to anyone even individuals at home who must buy an insurance cover,” he advised saying official statistics show that the bulk of Tanzanians feel that buying an insurance cover is unnecessary.

The NMB Head of Insurance Business further noted that insurance cover is not an expensive product saying for general insurance to protect property against fire, one pays only 0.25 percent of the value of the property giving an example that it the property was worth 100m/- then only 150,000/- is premium payment for a year minus value added tax.

“A house worth 100m/- only pays insurance premium of 150,000/- per annum or 177,000/- plus VAT which is way too cheap in case the your house is gutted down by fire upon which the bank will pay you 100m/-,” he explained.

Speaking at the same event, Reliance Insurance’s Claims Manager, Joel Mwakalebela commended the 12 Kariakoo business owners for their wise decision to insure their properties saying they are now leaping the fruits of their investment.

“Tanzanians should not wait to borrow from banks in order to qualify for insurance cover by default but pay from their own sources as a necessity to protect their property and life against risks,” Mwakalebela said.

He said that it is unfortunate that owners of thousands of businesses at Kariakoo Market who did not insure their properties are now thinking about borrowing from banks or other financial institutions to restart their businesses.

“The incident at Kariakoo should teach us a lesson that insurance is not a luxury that one should get after getting a bank loan but rather people should start buying insurance cover for their property at home, cars, family houses, health and life assurance to protect themselves against risks such as fire,” he insisted saying its high time that the public should consider insurance as a necessity.

One of the beneficiaries, Emmanuel Mbise who owned shops number 019 and 026 at Kariakoo Market, said the NMB insurance compensation is a big relief to his because he lost everything from the inferno.

“I also would like NMB to continue and speed up the process of sensitizing the public about the need to have insurance cover for property because many Tanzanians are ignorant of the subject,” Mbise said while smiling his way to the bank to collect compensation for his two shops.

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