Beginning in January 2023, drivers must pay a minimum of N15,000 annually for third-party insurance. The National Insurance Commission required this rise (NAICOM).
An internal reference number NAICOM/DPR/CIR/46/2022 and a circular dated December 22, 2022 are used to inform the insurance sector that approval has been granted.
The paper with the title New Premium Rate for Motor Insurance was signed by Mr. Leo Akah, Director, Policy and Regulation, NAICOM, on behalf of the Commissioner for Insurance.
It read, “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 January 1, 2023.”
The commission also announced that the new premium for a private car policy would be N15,000, with the Third Party Property Damage (TPPD) limit of claims increased to N3 million.
A new premium of N20,000 was introduced, and the limit for own items was set at N5 million.
The yearly price for insuring company buses is N20,000, and the TPPD is $3 million.
According to NAICOM, the TPPD limit for commercial vehicles, trucks, and general cartage is now N5 million, with a premium cost of N100,000. The TPPD limit for “special types” is now N3 million, with a premium rate of N20,000.
Newly implemented TPPD limits for tricycles are N2 million with a premium of N5000, while those for motorbikes are N1 million with a premium of N3000.
The NAICOM standard for premium rates on comprehensive insurance policies is 5% of the sum insured (after applicable discounts).
The commission warned the insurance industry to follow the new regulation or face appropriate sanctions.