By Henry Uche, Lagos
The National Insurance Commission (NAICOM) has issued new Premium rates for motor insurance to be effective from Sunday, January 1, 2023. A circular from the Commission confirmed this.
From the circular, NAICOM stated, “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 Sunday, January 1st, 2023.
According to the Commission, Third Party insurance policies – inclsive of ECOWAS Brown Card (EBC) shall be: For Private Vehicles which include: Private Motor, Own Goods and Staff Bus, the Third Party Property Damage (TPPD) limit is N3m, N5m and N3m respectively, while their corresponding new premium are N15,000, N20,000 and N20,000 respectively.
For commercial vehicles which includes Trucks/General Cartage, Special Types, Tricycles and Motorcycle, the new TPPD limit is N5m, N3m, N2m and N1m respectively, while their corresponding New Premium are N100,000, N20,000, N5,000 and N3,000, respectively.
The regulator stressed that the comprehensive motor insurance policy Premium Rate shall not be less than five per cent (5%) of the Sum Insured after all rebates/discounts. It warned that failure to comply with this Circular shall attract appropriate regulatory sanction, therefore insurance institutions much be guided accordingly.