The National Insurance Commission (NAICOM) has reviewed the premium for the third-party motor insurance mandated on all private vehicle owners from the present rate of N5,000 to N15,000 effective January 1, 2023.
Consequently, private vehicle owners covered in the third-party motor insurance can make a claim of third party property damage of up to the tune of N3million as against the sum of N1million they are accustomed to.
The adjustment in the insurance policy was contained in a circular titled, New Premium Rate for Motor Insurance numbered; NAICOM/DPR/CIR/46/2022 and dated December 22, 2022.
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The signatory to the circular, Mr Leo Akah, Director for policy and Regulation, NAICOM, remarked that the circular on the new motor insurance premium rates was issued in pursuant to the exercise of the commission’s function of approving rates of insurance premium under section 7 of NAICOM Act 1997 and other extant laws.
Also contained in the circular are rates for other kind of vehicles and road users which include the following:
Premium for staff bus has been put at N20,000 with a TPPD of N3million. Also, the premium for own goods was marked at N20,000 but with compensation of up to N5million.
Commercial vehicles, trucks/general cartage has TPPD limit of N5million with a premium cost of N100,000 while special types has TPPD benefit limit of N3million with a premium of N20,000.
More so, tricycle, TPPD limit of N2million with a premium N5000; and Motorcycle, TPPD limit N1million with a premium of N3000.
According to the circular, failure to comply with the new provision shall attract appropriate regulatory sanction. Also mentioned in the circular is; the comprehensive motor insurance policy premium rate shall not be less than five percent of the sum insured after all rebates or discounts.
The National Insurance Commission approved the new rates following a series of meetings between the commission and Insurance companies in the country, the Nation reported.