THE National Insurance Corporation's (NIC) revenues from life insurance increased to 11.33bn/- last year from 9.37bn/- in 2009 following reforms to invigorate the public firm.
According to a press statement released in Dar es Salaam over the weekend, NIC garnered over 15bn/- from non life insurance, an increase from 11.69bn/- in 2009. "Despite competition in the sector, returns in the insurance company has increased considerably particularly after the initiation of reforms," stated the report, outlining the success recorded in just two years of the reforms.
The government formed a task force to undertake evaluation of the firm's buildings, plots and other assets to identify those which could be sold to add on its working capital. An evaluation by Ardhi University put the market value of NIC assets as of 2008 at 96.9bn/- while tradable non core assets were estimated at 32bn/-.
The corporation collected 37bn/- from the disposal of assets bought by various government institutions and parastatal organisations. The collectable amount helped in settling outstanding 28.6bn/- debts to its clients. By June this year, about 18.71bn/- and 5.96bn/ had been paid to clients on life and non-life insurance.
"The insurance firm is continuing to settle new clients' claims on the ongoing business, building up the lost public confidence," stated the report. Furthermore, the report portrays that part of the money used to settle debts was also used to install the information technology (IT) based system to increase the efficiency of service delivery. A consultant has already been picked for the provision of the IT services.
The insurance firm is also seeking to establish a data clean-up system that will be incorporated with the IT system to be installed.
The company's business plan for 2010-12 was yet to be implemented due to delays in the disposal of its assets.