National Insurance Commission (NAICOM) has directed insurance companies in the country to increase the Third Party Motor Insurance premium rate from the current N5000 to N15,000 starting from January 2023.
Gatekeepers News reports that NAICOM also directed that Third Party Property Damage (TPPD) which is the limit of claims an insured can enjoy on the policy should be increased to N3 million from N1 million.
In the same vein, the premium for staff buses has risen to N20,000 with a TPPD of N3 million; N5 million limit for own goods, with a premium of N20,000.
Commercial vehicles, trucks/general cartage has TPPD limit of N5 million with a premium cost of N100,000; Special types, TPPD limit of N3 million with a premium of N20,000; Tricycle, TPPD limit N2 million with a premium N5000; and Motorcycle, TPPD limit N1 million with a premium of N3000.
The approval of the new rates follows a series of meetings between the Commission and insurance companies in the country.
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, Leo Akah for the Commissioner for Insurance Sunday Thomas and sent to all insurance Institutions.
Akah stated that the circular on the new motor insurance premium rates effective from January 1, 2023, was issued 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.
He warned that failure to comply with the circular shall attract appropriate regulatory sanction.
He explained that the comprehensive motor insurance policy premium rate shall not be less than five per cent of the sum insured after all rebates or discounts.
