By Bisi Bamishe
This week, the regulatory body, National Insurance Commission (NAICOM) commenced the campaign on the new rates for motor insurances that were approved in December 2022.
The campaign was in response to the questions and enquiries received by insurance operators from the Insuring public that the Insurers Committee of the industry through its Publicity subcommittee, decided to embark on.
Under the new rates that became effective on January 1st, 2023, Third Party Property Damage (TPPD) which is the limit of claims an insured vehicle can enjoy on a policy for private vehicle is now N3 million for the new premium of N15,000. In the past, when premium was N5,000, the limit of claims payable was N1million.
Tricycles (popularlly called Keke Napep) now have a TPPD limit of N2 million and premium of N5000 while motorcycles (popularlly called Okada) now have a TPPD limit N1 million and premium of N3000.
While the claim limit payable for own goods vehicle is N5 million, with a new premium of N20,000 that of staff bus is N3million with N20million yearly premium.
Insurance premium rate payable on staff buses is now N20,000 and its TPPD is N3 million.
Third party insurance cover is the minimum legal requirement vehicle owners are expected by law, to purchase.
It covers vehicle owners for damage to someone else’s vehicle or property or injury to someone else in an accident. This includes accidents caused by the passenger. However, it doesn’t cover repairs to the owner’s vehicle.
The benefits of the new rates according to a motorist, Mr Larry Owoyele are numerous. According to him, when he had an accident with his vehicle recently, it was a great joy to him that the Third Party lnsurance cover he bought for just N15,000 earned him a compensation in hundredfolds. His accidented vehicle was brought back to the position it was before the accident occurred.
Third-party insurance is supposed to cover the cost of repairs when a motorist damages someone’s car or property
It covers the Insured’s liability for death/injury to Third Party and loss or damage to the third-party property in the event of accidents
The purpose of third-party benefits is to insure liability for bodily injury and property damage claims made against car owners in the event they are responsible for a car accident.
Thus, the Third Party insurance cover for motorists which increased from N5,000 to N15,000 yearly with effect from January 1st 2023, according to Owoyele is a blessing in disguise for vehicle owners becauseof the benefits attached to it.
.He added, “When you look at the current economic situation in the country today, vehicle owners with Third Party lnsurance cover will have great relief”.