The National Insurance Commission, NAICOM, has directed insurance companies in the country to increase Third Party Motor Insurance premium rate to N15,000 from N5000 at which it is currently sold from January 2023.
NAICOM also directed that Third Party Property Damage, TPPD, which is the limit of claims an insured can enjoy on the policy should be increased to N3 million from N1 million.
In a circular signed by Director, Policy & Regulation, Mr. Leonard Akah with number ‘NAICOM/DPR/CIR/46/2022’, issued to all insurance companies on Friday, tricycle premium rate will increase to N5000 from N2000 while motor cycle premium rate, popularly known as okada will increase to N3000 from N1000.
The circular 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 premium motor insurance rates effective from 1st January, 2023.
“Third Party Insurance Policies inclusive of Ecowas Brown Card, EBC, shall be as follows: Private motor, N15,000, TPPD limit N3 million; Own goods, N20,000, TPPD limit N5 million; Staff bus, N20,000, TPPD limit N3 million; Commercial trucks/general cartage N100,000, TPPD limit N5 million; special types N20,000, TPPD limit N3 million; tricycle N5000, TPPD limit N2 million; motor cycle N3000, TPPD limit N1 million.
“Comprehensive motor insurance policy premium rate shall not be less than five per cent of the sum insured after all rebates/discounts.
“Note that failure to comply with this circular shall attract appropriate regulatory sanction.”