Vehicle Owners To Pay More For Insurance Cover In 2023

… Third Party Motor Insurance Premium Raised From N5,000 To N15,000

Beginning from January 1, 2023, owners of private and commercial vehicles are to pay more for insurance cover in Nigeria.

The National Insurance Commission (NAICOM), in pursuant to the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws, said it has approved new motor insurance premium rates effective from January 1,2023.

The approval was contained in a circular titled; ‘New Premium Rate for Motor Insurance’ with reference number NAICOM/DPR/CIR/46/2022, dated December 22, 2022.

The circular was signed by the Director, Policy and Regulation, NAICOM, Mr Leo Akah on behalf of the Commissioner for Insurance, Mr Sunday Thomas.

It said for private vehicles, the new rate for third party vehicle insurance would now be N15,000 from the which it was N5,000 previously, with Third Party Property Damage (TPPD) of N3,000,000. TPPD is the limit of claims an insured can enjoy on the policy.

In the same vein, NAICOM approved new premium rate for commercial vehicles. It said Staff bus and Own goods vehicles are to pay premium of N20,000 each while the TPPD are N3m and N5m respectively.

For trucks, the new premium rate is N100,000 with TPPD of N5m, while tricycle owners will pay N5,000 premium, motorcycle owners will pay N3,000. However, the TPPD for tricycle is N2m and motorcycle, N1m.

As for comprehensive motor insurance policy, NAICOM said that premium rate would not be less than five per cent of the sum insured after all rebates or discounts.

The Commission warned insurance companies that failure to comply with the circular would attract appropriate regulatory sanction.