2023: Private Vehicle Owners To Pay N15,000 Insurance Premium, Get N3m Claims

By LOVETH AZODO, Lagos

The National Insurance Commission (NAICOM) has approved N15,000 insurance premium for private third party motor insurance policy.

NAICOM announced the approval of the new rate in a circular signed by the Director, Policy and Regulation, NAICOM, Leo Akah for the Commissioner for Insurance Sunday Thomas, titled; New Premium Rate for Motor Insurance with number: NAICOM/DPR/CIR/46/2022 and dated: December 22, 2022.

According to NAICOM, the circular has been sent to all Insurance institutions and should take effect from January 1, 2023. It warned that failure to comply with the circular shall attract appropriate regulatory sanction.

It states ” 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.”

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.