NAICOM Hikes Premium Rates For Motor Insurance In Nigeria From January 2023
- The Nigerian government has issued a new directive for new insurance policy rates
- Private vehicles, trucks, tricycles, cartage and other types of cars are required to pay the new rates
- The new insurance rates will become effective January 1, 2023, and the National Insurance Commission (NAICOM) has issued warnings to violators
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The Nigerian government, via the National Insurance Commission (NAICOM) has hiked the premium rate for vehicle insurance in Nigeria from January 1, 2023.
In the new rate, private vehicles, which paid an N5,000 premium for the N1 million Third-Party Damage (TPPD) limit, are required to pay an N15,000 premium for N3 million. In contrast, owners of good vehicles are to pay N20 million for N5 million, and staff buses must pay N20,000 for N3 million.
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New Policy to start January 2023
According to BusinessDay, the new directive is contained in a circular issued on December 22, 2022, by NAICOM and sent to all insurance firms.
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Leonard Akah, Director of Policy and Regulation at the Commission, signed the directive on behalf of the Commissioner for Insurance.
The said:
“Pursuant to the exercise of its function of approving insurance premium rates 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.”
Commercial vehicles, Okadas, Keke, others affected
Commercial trucks and general cartage are required to pay N100,000 for N5 million TPPD; tricycles are required to pay N5,000 for N 2 million TPPD limit. Motorcycles are to N3,000 for N1 million TPPD limit.
Also, comprehensive motor insurance policies are required to pay anything at least five per cent of the sum insured after all rebates and discounts.
The Commission spelt out penalties for violators.
List of mandatory documents, items FRSC checks in your vehicle
Legit.ng reported that the Federal Road Safety Commission (FRSC) is empowered by law to carry out routine checks on all vehicles plying major routes in Nigeria.
Section 19 of the FRSC (Establishment) Act 2007 empowers the Commission to stop vehicles and carry out checks to ensure they comply with requirements laid down by the law.
According to the law, “personnel of the commission, who are exposed to high risk in the enforcement of the provisions of this act, shall have same powers, authorities and privileges, including the power to bear arms.”
Source: Legit.ng
