JUST IN: Third Party vehicle insurance premium increased by 200% to N15,000

 

Sunday Ojeme

Beginning from January 1, 2023, private vehicle owners will pay N15,000 as premium for Third Party vehicle insurance certificate.
The amount represents a 200 per cent increase from the N5,000 paid over the past years.
In a circular released Friday night to insurance operators, the National Insurance Commission (NAICOM) noted that the Third Party insurance policies were also inclusive of ECOWAS Brown Card coverage.
According to the circular referenced NAICOM/DPR/CIR/46/2022, and dated December 22, 2022, the Third Party Property Damage (TPPD), which represents the limit of claims the insured can enjoy on the private vehicle policy is N3 million.
NAICOM, in the circular titled: ‘New Premium Rates for Motor Insurance,’ said: “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, hereby issues this Circular on the new Motor Insurance Premium rates effective from January 1, 2023: Third Party insurance policies inclusive of Ecowas Brown Card (EBC).”
The circular, signed by Director, Policy and Regulation, NAICOM, Mr. Leo Akah, on behalf of the Commissioner for Insurance, also put other classes of the policy at Own Goods, N20,000 with TPPD of N5 million; Staff Bus, N20 000 (TPPD N3 million); Trucks/General Cartage, N100,000 (TPPD, N5 million); Special Types, N20,000 (TPPD, N3 million); Tricycle, N5,000 (TPPD, N2 million), and Motorcycle, N3,000 (TPPD, N1 million).
The new rule also noted that: “Comprehensive Motor Insurance Policy Premium rate shall not be less than five per cent of the sum insured after all rebates/discounts.”
It warned the operators that failure to comply with the circular would attract appropriate regulatory sanction.