Third party motor insurance Policy hits N15,000
From January 1, 2023, third party motor insurance policy will go up from the current N5000 to N15000, the Insurance regulator, National Insurance Commission (NAICOM) has said.
The development is contained in a new circular titled: New Premium Rate for Motor Insurance:NAICOM/DPR/CIR/46/2022, dated December 22, 2022, signed by Director, Policy and Regulation, NAICOM, Leo Akah.
Other approvals by the commission include N3 million Third Party Property Damage (TPPD) limit for private motor; N5 million limit for own goods, with premium of N20,000; staff bus premium, N20,000 and TPPD, N3 million
For commercial vehicles, trucks/general cartage has TPPD limit of N5 million, premium N100,000; special types, TPPD limit of N3 million, premium N20,000; tricycle, TPPD limit N2 million, premium N5000 and motorcycle, TPPD limit N1 million; premium N3000.
The circular noted 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.
The Commission has given assurance that the review was pursuant to the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws,
Given it’s powers under the Act, the Commission however warned that failure to comply with the circular shall attract appropriate regulatory sanctions.
