The prospects and problems of Co-operative Insurance in Tanzania

This study attempts to appraise the proposed Co-operative Insurance Company by examining; its prospects and problems in view of the socio-economic condition in Tanzania. The estate of the law governing commercial activities generally and cooperative enterprises in particular is one of these conditions but by no means the only one, nor is it the most important, since the law is a reflection of socio-economic relations in the society in the area of production, exchange and reproduction. It is the analysis of the various phenomenons, in a historical process that can give us a comprehensive picture of the subject under investigation. In examining the prospects and problems of the proposed company, therefore, account has been taken of the policy objectives, the economic strength of the co-operative movement as well as the relationship between the co-operatives and other public institutions. Three assumptions are made in this study: First, that need exists among workers and peasants for insurance services; second, that savings and credit societies, being money mobilers and sources of credit to law income comers, would act as channels for insurance services thus reducing the operations costs involved in employing agents; and third, that in order to keep to the co-operative spirit of democracy and service, an insurance co-operative society as opposed to an insurance company would be more appropriate for the provision of insurance services to the majority of the people especially those based in the rural areas.