FG issues new insurance rates for vehicles

FG issues new insurance rates for vehicles

Private vehicle owners in Nigeria will see the premium for a third-party insurance jerked up to N15,000 as from January 1, 2023.




This is part of the directive by the National Insurance Commission (NAICOM) in a circular released on Friday. This release was signed by Leo Akah, the commission’s head of policy and regulation.

According to the commission, the insured can make claims up to N3 million under the Third Party Property Damage (TPPD) clause of the private vehicle policy.

“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: Third Party insurance policies inclusive of Ecowas Brown Card (EBC),” the circular read.

The sum is a 200 per cent rise over the N5,000 that was previously paid.

Other classes covered by the policy were listed in the circular as follows: Own Goods, N20,000 with TPPD of N5 million; Staff Bus, N20,000 with TPPD of N3 million; Trucks/General Cartage, N100,000 with TPPD of N5 million; Special Types, N20,000 with TPPD of N3 million; Tricycle, N5,000 with TPPD of N2 million; and Motorcycle, N3,000 (TPPD, N1 million).

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The Insurance Commission noted that ECOWAS Brown Card coverage was also included in third party insurance policies.

A comprehensive motor insurance policy cannot have a premium rate that is less than 5 per cent of the total amount insured, after all discounts and rebates, under the new regulation.

The operators were warned that disobeying the new regulation would result in the necessary legal penalties.

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