The Federal Government, through the National Insurance Commission (NAICOM) has increased the premium rates for motor insurance in Nigeria effective January 1, 2023.
In the new directive, 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 million premium for N5 million, and staff busses are to pay N20,000 premium for N3 million.
This is contained in a circular issued on December 22, 2022 by NAICOM and sent to all insurance institutions, and signed by Leonard Akah, director, policy and regulation at NAICOM on behalf of the commissioner for insurance.
The circular 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 January 1, 2023.”
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 be less than five percent of the sum insured after all rebates and discounts.
The commission noted that failure to comply with this circular shall attract appropriate regulatory sanctions.