From January 1, 2023, the amount payable on the compulsory vehicle third party insurance by motorists in Nigeria will be ₦15,000.00, almost 200% increment from the ₦5,000.00 being paid presently.
Insurance regulator, National Insurance Commission, NAICOM made the disclosure in its new rates in a circular issued to all insurance firms at the weekend.
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The circular titled, ‘New Premium Rate for Motor Insurance,’ signed by NAICOM’s Director of Policy and Regulation, Leo Akah, warned against defaulting.
It explained that “Under the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws, the commission, as a result of this, issues this circular on the new motor insurance premium rates effective from January 1, 2023.”
It added that:
- “Own goods third party cover attracted N20,000 premium with N5m compensation.
- “Staff bus attracted N20,000 premium with N3m compensation.
- “Commercial (trucks, general cartage) attracted N100,000 premium with N5m compensation.
- “Special types attracted N20,000 premium with N3m compensation.
- “Tricycle attracted N5,000 with N2m compensation.
- “Motor cycle attracted N3,000 with N1m compensation.
“Note that failure to comply with this circular shall attract appropriate regulatory sanction,” the circular added.
It also stated that comprehensive motor insurance policy premium rate will not be less than five per cent of the sum insured after all rebates and discounts.
The third party insurance was also inclusive of Ecowas Brown Card.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur