The time when you take for granted the premium you pay on your third party motor insurance, or not bothering to make claims when damage occurs is over.
May be, you had taken it for granted because N5,000.00 premium that you were paying as a car owner before the new tariff on January 1, 2023 was small, now you have to pay N15,00.00 premium to be covered.
Many people had seen the third party motor insurance certificate as something to just hold because of police checks, and so do not bother on, where it is obtained from.
In that sense, they had been patronising fake operators at vehicle registration offices , instead of going to buy from licensed insurance companies that are registered by NAICOM. So, all the while, what they have paraded as insurance certificate was mere papers(fake) that worth nothing and could not be presented for claims.
With the new tariff on third party motor insurance effective 1st January 2023, NAICOM is driving to see that motorist have adequate cover to protect citizens and assets that become victims of accidents on Nigerian roads and across the ECOWAS Region.
NAICOM is therefore seeking that motorists take genuine insurance policies from registered insurance companies, make claims when there is accident involving third parties, and for own vehicles in case of comprehensive covers.
Under the new tariff, released 22nd December 2022, private vehicles that were paying N5,000 premium for N1 million Third Party Property Damage (TPPD) limit, are now to pay N15,000 premium for N3 million, while owner good vehicles are to pay N20,000 premium for N5 million compensation limit, and staff buses are to pay N20,000 premium for N3 million.
For commercial trucks and general cartage, they are to pay N100, 000 premium for N5 million TPPD limit; tricycles N5, 000 for N2 million TPPD limit, and motor cycles N3, 000 for N1 million TPPD limit.
While for comprehensive motor insurance policy, premium rate shall not been less than five percent of the sum insured after all rebates and discount.
To verify the genuineness of your motor insurance, the Nigerian Insurers Association (NIA) advise that you run your policy in the Nigerian Insurance Industry Data base (NIID).
Therefore, if your policy document is not captured in NIID, then that policy document you have as motor third party insurance certificate is fake and worth nothing.
You can actually verify it yourself from any where you are. This has not only brought a check to fake documents, it has now empowered you to make claims on all third party liabilities.
To verify the document, simply apply this code into your GSM handset, and in seconds the status of your insurance is displayed on your screen. (SMS: policy number*plate number to 33125).This is compliant with all networks.
Read also: Motor insurance tariff hike raises fake policy, cost concerns
If the resultant message says, “not available on NIID date base, then know that what you are parading as insurance is fake. But if it’s there, it tells you immediately the name in which your vehicle is registered; the make and model of the vehicle; the colour of the vehicle; name of the insurance company and date of expiration of the policy.
“Verifying the authenticity of your vehicle insurance policy on the NIID gives you peace of mind and assurance that your claim will be paid,” the Nigerian Insurers’ Association stated.
The benefit of having a third party insurance policy is huge because it protects against third party damage. This means that in the event of an accident occurring, the policy holder has a third party property damage and can make claim on property and life in case of death or permanent disability.
The new tariff is contained in a circular issued 22nd of December 2022 by NAICOM and sent to all insurance institutions, and signed by Leonard Akah, director, Policy and Regulation at the Commission on behalf of the Commissioner for Insurance.
The NAICOM circular on the new tariff reads: “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 1st January 2023.”
The Commission noted that failure to comply with this circular shall attract appropriate regulatory sanctions.
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