Nigeria’s insurance sector regulator, National Insurance Commission (NAICOM), has approved and announced a 200 percent increase on the current third party vehicle insurance premium from N5000 t0 N15000 with effect from January 1, 2023.
This information was communicated via a circular no NAICOM/DPR/46/2022 with the title: New Premium Rates for Motor Insurance, dated 22nd December, 2022.
The Third Party Property Damage (TPPD), that is, the limit to which an insured party can make claims on the policy, has also been increased.
The Circular signed by its Director, Policy and Regulation Mr. L. Akah on behalf of the Commissioner/ Chief Executive, Mr. Sunday Thomas, stated : “ Pursuant to the exercise of its function of approving rates of insurance premiums under section 7 of NAICOM Act 1977 and other extant laws, the Commission hereby issue this circular on the new Motor Insurance motor insurance premium rates effective from 1st January,2023”.
Under the new rates, private motor attracts N15,000 premium and N3,000,000 TPPD. While Own Goods as well as Trucks/ General Cartage will now both enjoy TPPD limit of N5,000,000, their premiums are N20,000 and N100,000 respectively.
Staff Buses and Special Types enjoy the same rates of N3,000,000 TPPD limit and 20,000 premium. Tricycles will enjoy N2,000,000 TPPD limit and N5,000 premium and lastly Motor Cycles will pay N3000 premiums while attracting a TPPD limit of N1,000,000.
The circular explained that the third party policy covers the Ecowas Brown Card and emphasized that comprehensive insurance policy premium rate shall NOT be less than 5% of the sum insured after all rebates and discounts.
The Commission warned “that failure to comply with this Circular shall attract appropriate regulatory sanction”.
NAICOM Raises Third-Party Vehicle insurance by 200% to N15,000
TPPD Hiked also, Effective January 1,2023
