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NAICOM Increases Third Party Motor Insurance By 200% To N15,000

NAICOM Increases Third Party Motor Insurance By 200% To N15,000

Nigeria’s insurance regulator, the National Insurance Commission (NAICOM), has raised third-party insurance coverage for motorists from N5,000 to N15,000 yearly.

According to a circular addressed to insurance companies, the new policy becomes effective from January 2023,

Third-Party Property Damage: Part of the circular which was signed by NAICOM’s Director of Policy and Regulation, Mr Leo Akah, said:

“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 issues this circular on the new motor insurance premium rates effective from Jan. 1, 2023.”

The circular added that for any third-party property damage (TPPD), the limit of claims an insured can enjoy on a policy for the private vehicle will now be N3 million for the new premium of N15,000. In the same vein, the limit for own goods would be N5 million, with a new premium of N20,000.

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The commission added that the Insurance premium rate payable on staff buses is now N20,000 and its TPPD would be N3 million.

Other commercial vehicles: Similarly, commercial vehicles, trucks and general cartage now have a TPPD limit of N5 million with an N100,000 premium rate while ‘special types’ now have a TPPD limit of N3 million and a premium of N20,000.

For Tricycles, the TPPD limit is now N2 million with a premium of N5000 while motorcycles now have a TPPD limit of N1 million and a premium of N3000.

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The commission also noted that the Comprehensive insurance policy premium rate shall not be less than 5 per cent of the sum insured after all rebates or discounts.

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