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Frequently Asked Questions and Answers

About Deposit Insurance Board Board Members Member Institutions Publications Conference FAQ



The Deposit insurance Board of Tanzania (DIB) is a public institution with corporate personality whose existence and its operations has been provided for under the provisions of Sections 36 up to 42 of the Banking and Financial Institutions Act, 2006 which became operational in July 2006. Before 2006, DIB and its corresponding Fund existed by virtue of the Banking and Financial Institutions Act, 1991 the Law which established it but now repealed. DIB started its operations under the auspices of the Bank of Tanzania (BoT) in 1994.


Que. 01          What is the Deposit Insurance Board (DIB)?

The Deposit insurance Board of Tanzania (DIB) is a public institution with corporate personality whose existence and its operations has been provided for under the provisions of Sections 36 up to 42 of the Banking and Financial Institutions Act, 2006 which became operational in July 2006.


Que. 2            What are the primary objectives of DIF/DIB?

Ans.                (i)   To provide insurance against the loss of part or all the deposits in member institutions, and;

(ii)              To provide and otherwise contribute to the stability of financial system in Tanzania.


Que. 3                        What are the main functions of DIF/DIB?


Ans.                The functions of the DIB are as follows:

·        Assessment and collection of insurance premium from banks and financial institutions. Currently, premium is assessed at the rate of one tenth of one and half percent of the average total deposit liabilities for the preceding twelve months.


·        Invest DIB resources in line with DIB’s investment policy.


·        Pay off depositors of failed banks or financial institutions at the ruling coverage rate which currently is TZS 1,500,000/= per depositor. 


·        Conduct liquidation of failed banks or financial institutions once appointed by the BoT. At present, DIB is liquidating two banks namely; Greenland Bank (T) Ltd and Delphis Bank (T) Ltd.  The liquidation exercise of the two banks is facing some problems associated with pending court cases which delay their completion and winding up.


Que.4         Are the deposits of all banks and Financial Institutions insured with DIB?

Ans.    (i)        Yes. Deposits of all Commercial Banks and financial institutions are insured by DIB with exceptions of the deposits excluded under section 39(8)  i.e

(a)        Interbank deposits

(b)       Government deposits

(c)                Deposits of investment company or security firm

(d)              A person who is “ connected person”


However, DIB insures only deposits in Tanzania. Deposits in overseas branches of local banks are not insured by DIB. All types of deposits received by a bank or financial institution in its normal course of business are protected up to the maximum of TZS 1,500,000/= per depositor.


When the DIB started its operations in 1994 the maximum coverage ceiling was TZS 250,000/= per depositor.   However, given the growth of national economy, effects of inflation and other factors the  protection ceiling was raised to TZS 500,000 in 2003 before the current rate of TZS 1,500,000/=which became effective in May, 2010.


            Que. 5                       What types of deposits are insured by DIB?

            Ans.                All types of deposits which include;

(i)                 savings account

(ii)              Time deposits

(iii)            Current or demand deposits or cheking accounts and any other deposits for which the bank is primary liable.


Que.6             What is the maximum insurance coverage for each depositor?

Ans.                By virtue of Section 39(1) of the Banking and Financial and institutions Act 2006, and the Government Notice No. 198/2010 issued on 4th June 2010, the maximum amount of deposit insurance coverage currently is TZS 1,500,000/= per depositor per bank.

Que. 7            Can DIB terminate a bank’s insured status?

Ans.                Yes. In close collaboration with the Directorate of Banking Supervision, DIB can terminate a bank’s insured status due to either of the following reasons:

(i)                 Non payment of Insurance premium

(ii)              Continued engagement in unsafe and unsound banking practices.

When a bank’s insured status is terminated, depositors are advised through a notice of termination posted at the bank’s premises and publication in the major newspapers of wide circulation.


Que. 8.           How much can Joseph Baraka collect from DIB if he has the following account balances as of the date of closure of his bank?

                        (i)        Savings Accounts     TZS 350,000/=

                        (ii)       Current accounts      TZS 450,000/=

                        (iii)      Time deposit                        TZS 850,000/=

                                    Total                           TZS 1,650,000/=


Ans.                All his accounts shall be added together to determine his total deposit, but the amount he can collect from DIB cannot be more than TZS 1,500,000/= as the maximum coverage per depositor.

Que. 9            What are the insured amounts if the bank records show the following account balances in the name of Joseph Baraka and his son James Baraka?

                        Joseph F. Baraka Savings A/C       TZS 550,000/=

                        Joseph P. Baraka savings A/C       TZS 550,000/=

                        Joseph F. Baraka and James P. Baraka TZS 550,000/=

Ans.                All the three Accounts are insured for TZS 550,000/= each maintained in different rights and capacities.

Que.10           What is the insured amount if  Joseph Baraka and James P. Baraka have two joint accounts as follows:

(i)                 Joseph F. Baraka & James P. Baraka Savings A/C. TZS 1,600,000/=

(ii)              James P. Baraka & Joseph F. Baraka Current A/C TZS 1,600,000/=


Ans.                The two accounts are considered as one because they are maintained in the same rights and capacity despite the different order in which the names of the depositors are stated.

Que. 11          Jesca Peter has a deposit of TZS 1,800,000/= she has a matured loan of Tzs 200,000/=. How much is her insured deposit?

Ans.                The net amount of her deposit is TZS 1,600,000/=( 1,800,000/=  minus TZS 200,000/= However the insured amount is TZS 1,500,000/=

Que. 12          How much can Abdul Suleiman collect from DIB if his deposit balances in the following branches of a closed bank are:

                        (i)        X Branch                    TZS 400,000/=

                        (ii)       Y Branch                    TZS 400,000/=

                        (iii)      Z Branch                    TZS 800,000/=

Ans.                He shall be paid the maximum amount of TZS 1,500,000/= The accounts in the three branches of the same bank are added together to determine what is due to him, but he can only collect the maximum insurance deposit of TZS 1,500,000/=. The unpaid balance may be claimed from DIB after the final liquidation of the remaining assets and consideration of payment priorities.

Que. 13          Alex Andrew placed with bank “A” TZS 1,250,000/= in five Bearer certificates of Time deposits (BCTD) at TZS 250,000/= each. All the BCTD’s were signed by Alex Andrew. He later on sold two BCTD’s to Bernard Bright. Mr Bright did not register his ownership of the BCTD’d he bought. Later on bank “A” was closed, can Mr. Bright as a holder of the two BCTD’s collect their value from DIB.

Ans.                No, because as per bank’s records, he is not the registered owner of the BCTD”s. Even after the sale of BCTD”s Mr Bright failed to have his signature registered on the two (2) certificates.

Que. 14          Alex Andrew had 500,000/= in his savings account in Bank B at the time of its closure. Can he collect the maximum amount of TZS 1,500,000/= as insurance coverage?

Ans.                No, the amount 1,500,000/= represents the maximum amount of insurance coverage. Thus, if his total deposit in the same bank (whether deposited in different branches) do not amount to or exceed TZS 1,500,000/= he is entitled only to the amount he kept in his account ( TZS 500,000/=) less any statutory obligations.

Que.15           Is the depositor liable to pay insurance premium to DIB?

Ans.                No. The bank or financial institution where deposits are maintained pays the insurance premium.

Que. 16          What specific risks to a bank does DIB cover?

Ans.                Only risks of bank closure, thus losses due to thefts are not covered by DIB.

Que.17           When is an insured bank deemed closed?

Ans.                An insured bank shall be deemed closed on account of insolvency upon the order of closure by the Bank of Tanzania. Insolvency refers to a situation wherein a bank’s liabilities exceed its assets resulting in the bank’s inability to repay its creditors.

Que. 18          When does the DIB pay the insured deposits of bank depositors?

Ans.                Whenever an insured bank or financial institution is closed on account of insolvency, payment of insured deposits of such bank shall be made by DIB as soon as possible.

Que. 19          Is there a need for a depositor to file his /her claim for insured deposits with DIB?

Ans.                Yes it is indispensable requirement before payment could be made.

Que. 20          When should the depositor of a closed bank file her/his claim with DIB?

Ans.                The depositor of a closed bank should file a claim for his/her insured deposit within a reasonable time after the Bank of Tanzania has ordered the closure of the bank on account of insolvency. Normally the time of the claim will be announced together with the notice calling for depositor’s claims.

Que.21           How long does it take DIB to settle Claims for insured deposits?

Ans.                Claims for insured deposits shall be settled within a short reasonable period of time provided that the claim is submitted within the prescribed time and the documents are complete and correctly completed.

Que.22           what is the meaning of “Claim settlement”?

Ans.                “Claims settlement” means the actual payment of claims due to the claimants as determined by DIB. However, settlement of claims may also refer to the denial of the claim due to insufficiency of supporting documents/papers required by DIB and other reasons that may result in denial of the claim under the law of the land.

Que.23           How does DIB determine ownership of funds?

Ans.                The DIB presumes that funds are owned as shown in the Deposit Account Records of the insured depository institutions. If DIB determines that the Deposit Accounts Records of the institution are not ambiguous, those records are binding to the depositor. No other records are considered in determining legal ownership.

Que. 24          Who is the member of Deposit Insurance Fund?

Ans.                Every bank and financial institution operating in Tanzania Mainland and Zanzibar is a member and contributor to the Fund.  The contribution is made in form of premiums.  The Fund now has a total of 43 members. 





For more information please contact:

The Director,

Deposit Insurance Board,

BoT Headquarters Building, North Tower,

7th Floor, No. 10 Mirambo Street,

P.O. Box 2939,

Dar es Salaam.

Tel: +255 (0) 22 2235390, Fax: +255 (0) 22 2234200

Email: info@hq.bot-tz.org







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