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The District Court correctly dismissed the suit for lack of pecuniary jurisdiction as insurance claims below TZS 40,000,000 must be referred to the Insurance Ombudsman, not the courts, in accordance with Section 123 of the Insurance Act and relevant regulations.
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The High Court held this insurance dispute was time barred, but that the court had jurisdiction because the Ombudsman’s pecuniary limit was exceeded.
The High Court struck out an insurance damages suit, holding it was prematurely filed because the claim had to be referred first to the Insurance Ombudsman.
The trial court lacked both subject matter and pecuniary jurisdiction to determine the insurance claim, as the law required such claims to be filed with the Insurance Ombudsman and the pecuniary limit for commercial cases was TZS 30,000,000 at the time of filing. The judgment and decree of the trial court are null and void.
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The District Court lacked jurisdiction to entertain the insurance claim of Tshs. 15,000,000/= as the law and regulations require such claims to be filed with the Insurance Ombudsman, a special forum established for this purpose. The use of 'may' in the statute does not override the mandatory nature of the designated forum for claims below the statutory threshold.
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