By Business Insider Reporter
For traders at Lumumba Street in Mwanza, the fire that swept through their businesses on July 3, 2026, did more than destroy shops and merchandise.
It wiped out property, business capital and, for many, the means of earning a living. But for the nine traders who had Reliance Insurance cover, the devastating loss has not meant the end of their businesses.
Through NMB Bank’s bancassurance service, the traders have received a financial lifeline, with Reliance Insurance paying total compensation of TSh 1.072 billion following assessment of their losses.
Reliance Insurance is NMB Bank’s bancassurance partner, and NMB facilitated and helped in the settlement of the claims, enabling the insured traders to begin rebuilding their businesses.
For beneficiary Zablon Deogratius, the compensation has brought hope after the fire destroyed his property and business capital. He said the payment would help him restore his business and rebuild his economic livelihood.
The nine beneficiaries were among more than 60 traders affected by the fire, but Reliance Insurance officials said only the nine had insurance cover.
The contrast highlights the value of insurance in protecting businesses against unexpected losses. While many affected traders have been left to bear the full cost of the fire, those with insurance cover have been able to access compensation to rebuild their businesses and restore their sources of income.
NMB Bank Insurance Claims Manager Madoro Max said the bank acted quickly after receiving notification of the fire.
“After receiving notification of the incident, we took immediate action by sending experts to assess the damage and process the claims that had been submitted,” Max said.
The timely assessment and settlement were particularly important for traders whose businesses and income depended on the premises and assets destroyed by the fire.
NMB Lake Zone Manager Faraja Ng’ingo said the compensation would help the traders restore their businesses and sources of income.
“These payments are important because they will give these traders the ability to restore their businesses and sources of income after suffering significant losses,” Ng’ingo said.
The incident has also highlighted the need for greater insurance awareness among small-business owners.
Mwanza Regional Commissioner Said Mtanda urged traders to insure their businesses and property, describing insurance as an important tool for protecting capital and strengthening resilience against unexpected disasters.
The Lumumba fire demonstrates the practical value of insurance when businesses face major losses. For the nine traders, having Reliance Insurance cover and access to claims support through NMB’s bancassurance relationship has provided a financial pathway to recovery. The experience also shows that bancassurance can play a practical role beyond providing access to insurance products. By facilitating the claims process with its insurance partner, NMB helped insured customers access compensation that can enable them to restore their businesses and start again.
