The National Insurance Commission (NAICOM) will from January 1, 2023 increase private third party motor insurance policy premium to N15,000 as against its current rate of N5000.
The approval was contained in a circular entitled; New Premium Rate for Motor Insurance: numbered: NAICOM/DPR/CIR/46/2022, dated December 22, 2022; signed by the Director, Policy and Regulation, NAICOM, Leo Akah on behalf of the Commissioner for Insurance, Sunday Thomas.
The circular sent to all insurance institutions stated that 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 January 1, 2023”.
It warned that failure to comply with the circular shall attract appropriate regulatory sanction.
NAICOM also approved N3 million Third Party Property Damage (TPPD) limit for private motor; N5 million limit for own goods, with premium of N20,000; staff bus premium, N20,000 and TPPD, N3 million.
For commercial vehicles, trucks/general cartage has TPPD limit of N5 million, premium N100,000; special types, TPPD limit of N3 million, premium N20,000; tricycle, TPPD limit N2 million, premium N5000 and motorcycle, TPPD limit N1 million; premium N3000.
NAICOM added that comprehensive motor insurance policy premium rate shall not be less than five per cent of the sum insured after all rebates or discounts.
