The National Insurance Commission (NAICOM) has approved an increase in the private third party motor insurance policy premium from N5,000 to N15,000 with effect from January 1, 2023.
In a 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 for Commissioner for Insurance, Olorundare Sunday Thomas, and sent to all insurance Institutions.
Also approved was 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.
Besides, industry regulator said 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.
NAICOM assured that the review was in line with the pursuant to the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws,
The Commission however warned that failure to comply with the circular shall attract appropriate regulatory sanctions.