Why Tanzanians Skip Travel Insurance – And Why You Shouldn’t!

Today, I want to dive into a topic that we as Tanzanians don’t talk about much… travel insurance! Yes, that thing we tend to brush off as an unnecessary extra. But why? Is it because we don’t really get its value or is it just a case of “meh, not for me?”

While roaming around the Swahili International Tourism Exhibition (S!TE) recently, I had a chat with two insurance pros; Omary, a business development manager, and Clevance, a relationship manager, both from CRDB Insurance. These gentlemen dropped some real gems about why the uptake of insurance in general, let alone travel insurance, is shockingly low — under 2% of our national GDP, to be exact!

And if you’re wondering, CRDB Insurance is a subsidiary of CRDB Bank Tanzania, and they’ve teamed up with a partner in Spain, so they’ve got you covered worldwide!

“Tanzanians, we don’t believe in getting travel insurance. The uptake of insurance in general is small, and travel insurance is even lower,” Omary explains.

“As a country, we’ve always relied on tourists for insurance, both inbound and outbound. Now, with Zanzibar making it mandatory for non-residents to have local travel insurance, it’s opening doors for us as local insurers,” he adds.

Zanzibar is shaking things up! As of October 1, 2024, it’s mandatory for non-residents travelling to the island to have travel insurance. Zanzibar Insurance Corporation is selling it for 44 USD per person, covering 92 days.

But here’s where it gets interesting. There are different kinds of travel insurance, and the standard ones available in Tanzania mostly cover outbound travel.

“Outbound travel insurance is for people heading abroad,” Clevance breaks it down. “It covers unexpected events while you’re outside Tanzania. Most Tanzanians only get this insurance because it’s mandatory for visas in places like the Schengen countries, the US, and Canada.”

And here comes the kicker… “Most Tanzanians don’t even know that they can claim! They just get it because it’s a visa requirement. So there’s a knowledge gap,” Clevance says, with a sigh that screams ‘facepalm.’

So, what exactly does travel insurance cover? It includes Trip Cancellation, Trip Interruption, Medical Expenses, Emergency Medical Evacuation, Baggage Loss or Delay, Travel Delay, and Emergency Assistance Services. Pretty comprehensive, right?

But let’s say the unexpected happens like your luggage vanishes into the airline black hole, how do you claim?

“All claims for travel insurance are on a refund basis, except for medical expenses. You get refunded for what you spent,” Clevance clarifies. “For example, if your trip gets cancelled, you’ll need to show proof of ticket purchase and other receipts, like hotel bookings, and then you’ll get refunded.”

Oh, and get this: you can buy travel insurance as a group! “Yep, the more people, the bigger the discount,” Clevance adds.

CRDB Insurance is also working on something new, domestic travel insurance. “We’re launching a local insurance package soon. So if you’re travelling from Dar es Salaam to Dodoma, for example, you can get insured for the trip. We’ll start with key areas and then expand,” Omary excitedly reveals.

This is great news for all of us domestic explorers… whether you’re on a business trip or leisure, it’s a way to ensure you’re covered if things go sideways.

Are you still wondering why you need travel insurance? Well, for starters: financial protection, medical emergency, trip continuity, and let’s not forget those annoying visa requirements. But for me, the biggest reason is that sweet peace of mind.

Honestly, this conversation opened my eyes. What about you?