Naicom finally increases third party motor insurance premium from N5,000 to N15,000 for private, commercial N20,000

.  ….Effective January 1, 2023
By Favour Nnabugwu
National Insurance Commission, Naicom has finally increase the much awaited motor insurance rat from N5,000 to N15,000 for private vehicle and commercial to N20,000 effective January 1, 2023.
The new premium rate increase, following the inflation rate in the country and the rate had just been reviewed after 19 years from N1,000 to N5,000.
Third-party motor insurance is one of the compulsory classes of insurance and the most popular among the six compulsory insurance policies stipulated by the Insurance Act 2003.
Naicom in a circular titled, The New Premium Rate for Motor Insurance with reference number NAICOM/DPR/CIR/46/2022 signed by the Director, Policy & Regulations, Mr Leo Akah and made available to the Press by Deputy Director and Head Corporate Communications and Market Development, Mr Abdul Rasaaq Salami says the in pursuant to its function of approving premium rate of insurance companies under Section 7 of Naicom Act 1997, and other extant laws, the Commission hereby issue this circular on the new motor insurance premium rate effective from January 1, 2023
The new motor insurance premium rate increase third party motor insurance from N5, 000 to N15, 000 for private, while commercial is N20, 000. For own goods and staff busses are to pay N20,000 each for truck and general cartage is N100k and for special types N20,000; tricycle N5,000 and motorcycle N3,000.
Naicom outlined the Third Party Property Damage, TPPD which is the limit of claims an insured can enjoy on the policy states that private cycle is N3 million own goods N5 million staff bus N5 million trucks/general cartage N3m, special types N5 million; tricycle N3 million and motorcycle N1milion
The regulatory body said the third party rate is inclusive of ECOWAS Brown card.
“The third party insurance policies inclusive of ECOWAS Brown CARD (EBC)”
And that Comprehensive insurance motor insurance premium rate shall not be less than 5 percent of the sum insured after all rebates/ discounts.
Naicom stated that failure to comply with the circular will invite the want of the Commission.
“Note that failure to comply with this circular shall attract appropriate regulatory sanction”
The new rate is the outcome of the discussion between a committee that consists of the Commission and chief executive officers of underwriting firms.