Third Party hike: NIA to launch out to stakeholders for support

The Nigerian Insurers Association, NIA has thrown the full weight behind the increase of third party motor insurance as the body is moving to reach critical stakeholders for support and patronage.

Chairman of the NIA, Mr. Olusegun Omosehin said the association appreciate the efforts of the National Insurance Commission, Naicom to better the industry and will do all withing the body power to make sure the sector get stakeholders backing of it.

Omosehin said the gains from the increase is far more endearing than the increase

According to him, “Nigerians will support the new rates and this will not only lead to increase in premium income for underwriters but also increase in claims payment to the clients”

“The  Association is embarking on stakeholder engagement as a first layer interface with the critical stakeholders to ensure their buy in and support”

“We  do not need to restate the issues with enforcement of the old rates, but we are confident that with your usual support and the understanding of the Nigerian public”

It will recalled that Naicom increase the third party insurance premium rates with effect from January 1, 2023. A private car owner would have to purchase a third party motor policy for N15,000, with a claim of N3million as benefit, while staff bus would have to pay N20,000 to enjoy a N2million claim Premium of N5,000 for tricycles and claim of N1million and premium of N3,000 for motorcycles respectively.

According to a circular issued by the National Insurance Commission (NAICOM) to all insurance institutions which was made available to Daily Independent weekend, the new premium rate for third party private motor insurance has been raised to N15,000 from N5,000 with N3miilion third party property damage (TPPD) as benefit in an event of damage.

Under the new template, a policyholder for Own Goods, effect from the stipulated date, has to pay a N20,000 as premium with N5mllion benefits where claims occur for a third party damage; insurance premium rate for a staff bus now goes for N20,000 with N3million Third Party Property Damage (TPPD).

Similarly a policyholder with general carriage truck would have to pay a N100,000 premium to enjoy N5million TPPD, while tricycle would have to pay N5,000 premium and enjoy N2million TPPD limit, and a Motor cyclist will have to pay N3,000 as premium and will enjoy benefit up to N1million respectively.

Third Party Property Damage (TPPD) is a limit of claims an insured can enjoy on the policy.

The new rates extends to the Third Party insurance policies for private and commercial vehicles inclusive of Ecowas Brown Card (EBC) while comprehensive motor insurance policy premium rate shall not be less than five percent of the sum insured after all rebates and discounts.