Nigerian motorists travelling within the West African sub-region with recently adjusted premium rate for Third-party motor insurance will enjoy the benefit in the event of an accident, the Nigerian Insurers Association (NIA) said.
For instance, a registered Nigerian vehicle with third-party motor insurance is covered when in and around any of the West African countries, while also motorist from other West African countries into Nigeria will get third party compensation in event of accident with a Nigerian vehicle.
Segun Omosehin, chairman, NIA said the new premium is in line with Ecowas protocol, stating that the sub-regional institutions are working to liberalise trade.
Omosehin said the Association fully supports the new premium rates released by the National Insurance Commission (NAICOM) and has indeed taken steps to ensure that members comply and join in the publicity initiatives that will follow shortly.
“The Association is embarking on stakeholder engagement as a first layer interface with the critical stakeholders to ensure their buy in and support.”
He said, while he will not restate the issues with enforcement of the old rates, he expressed confidence that 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.
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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.
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.
