By Bisi Bamishe
From January 1, 2023, owners of private and commercial vehicles are to pay more for insurance cover in Nigeria.
According to the regulatory body of the risk bearing sector, National Insurance Commission (NAICOM), in pursuant to the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws, the Commission has approved new motor insurance premium rates effective from January 1,2023.
The approval was contained in a circular entitled; New Premium Rate for Motor Insurance: numbered: NAICOM/DPR/CIR/46/2022, dated,; December 22, 2022; signed by the Director, Policy and Regulation, NAICOM, Mr Leo Akah on behalf of the Commissioner for Insurance, Mr Sunday Thomas.
For private vehicles, the new rate for third party vehicle insurance is now N15,000 which hitherto was N5,000, with third party property damage (TPPD) of N3,000,000. TPPD is the limit of claims an insured can enjoy on the policy.
In the same vein, NAICOM approved new premium rate for commercial vehicles. Staff bus and Own goods vehicles are to pay premium of N20,000 each while the TPPD are N3million and N5million respectively.
For trucks, the new premium rate is N100,000 with TPPD of N5million. While tricycle owners will pay N5,000 premium, motorcycle owners will pay N3,000. However, the TPPD for tricycle is N2million and motorcycle, N1million.
As for comprehensive motor insurance policy, NAICOM said that premium rate shall not be less than five per cent of the sum insured after all rebates or discounts.
The Commission warned that failure to comply with the circular shall attract appropriate regulatory sanction.
