NAICOM approves N15,000 premium for private motor third party policy from January 1, 2023
The National Insurance Commission (NAICOM) has said from January 1, 2023, private third-party motor insurance policy premiums will be N15,000 as against the N5,000 present rate.
The approval was contained in a circular entitled; New Premium Rate for Motor Insurance: numbered: NAICOM/DPR/CIR/46/2022, dated, December 22, 2022; signed by the Director, Policy, and Regulation, NAICOM, Leo Akah for the Commissioner for Insurance Sunday Thomas and sent to all insurance Institutions.
NAICOM also said that under the exercise of its function of approving rates of insurance premiums under Section 7 of the NAICOM Act 1997 and other extant laws, the commission hereby issue the circular on the new motor insurance premium rates effective from January 1, 2023.
It warned that failure to comply with the circular shall attract appropriate regulatory sanction.
NAICOM also approved an N3 million Third Party Property Damage (TPPD) limit for private motors; N5 million limit for own goods, with a premium of N20,000; staff bus premium, N20,000 and TPPD, N3 million.
For commercial vehicles, trucks/general cartage have a TPPD limit of N5 million, a premium of N100,000; for special types, a TPPD limit of N3 million, a premium of N20,000; for tricycles, a TPPD limit of N2 million, a premium N5000 and motorcycle, TPPD limit N1 million; premium N3000.
The insurance industry regulator submitted that the comprehensive motor insurance policy premium rate shall not be less than five percent of the sum insured after all rebates or discounts.