The government of Tanzania made clear on Saturday that there were no plan to privatize its insurance body, the National Insurance Corporation (NIC).

Susan Mkapa, the Deputy Permanent Secretary in the Ministry of Finance and Planning, said the government has embarked on plans to de-list NIC from public institutions that were set to be privatized.

Mkapa assured NIC staff that their jobs were secure and there was no need for panic.

Mkapa was speaking at the NIC workers' council held in the capital Dodoma.

She said that the provision of insurance services by NIC was a policy issue and therefore the institution will remain under the government.

Mkapa, who represented the Minister for Finance and Planning Minister, Phillip Mpango, said the government's decision to stop NIC from being privatized was aimed at strengthening the institution.

"The ministry has extended job contracts for NIC workers for three months. Official communication will be made on the decision. Workers should continue working hard as the process is being finalized," she said.

She called on NIC to execute its duties competitively, increase efficiency, be innovative and avoid working in the business-as-usual style.

Sam Kamanga, NIC Managing Director, said some of the public institutions were hesitating to use NIC services because the government has not issued a statement regarding its fate.