Insurers Back NAICOM On New Premium Rates.

By LOVETH AZODO, Lagos

The Nigerian Insurers Association (NIA) has stated that it is in full support of the new Motor third party insurance premium rate released by the National Insurance Commission (NAICOM).

The Chairman of the Association, Mr Olusegun Omosehin who stated this during a press conference held in Lagos revealed that the association has taken steps to ensure that its members comply and join in the publicity initiatives that will commence soon.

It would be recalled that on Thursday, 22 December 2022, NAICOM announced a 200 percent increase on premium payable on the compulsory Motor Third Party Insurance from N5000 to N15000.

The commission, equally increased claims on the policy from N1million to N3million. The increase took effect January 1, 2023.

According to the Chairman, The Association is embarking on stakeholder engagement as a first layer interface with the critical stakeholders to ensure their buy in and support.

In his optimism, he said “We do not need to restate the issues with enforcement of the old rates, but we are confident that with your usual support and the understanding of the Nigerian public, Nigerians will support the new rates and this will not only lead to increase in premium income for underwriters but also increase in claims payment to the clients.
He added that the Ecowas Risk (risk arising from travelers from West African countries) other is covered under the new premium rates.

Speaking on the Association relationship with other alms, Omosehin assured that the Governing Council has scaled up engagement with other arms of the industry to discuss issues of mutual concern.

“The Joint NIA/ NCRIB Technical Committee has been meeting on technical issues that affect brokers and underwriters and it is our hope and expectation that these engagements will further cement the already existing cordial relationship between the two bodies,” he said.