The National Insurance Commission has raised the premium for third-party motor insurance premium from N5,000 to N15,000 effective January 1, 2023.
NAICOM disclosed this in a circular with the number ‘NAICOM/DPR/CIR/46/2022 to all insurance companies titled ‘New premium rates for motor insurance’.
Rates and of other insurances for road users were also stipulated in the circular signed by the Director (Policy & Regulation), NAICOM, L.M. Akah.
“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 issue this circular on the new motor insurance premium rates effective from 1 January 2023,” the circular read.
It 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.
According to the circular, their party insurance for private motors new premium rate is not N15,000 while the claims limit is N3m.
“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.
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