The Nationwide Insurance coverage Fee (NAICOM) has elevated the premium charges for car insurance coverage within the nation.
In a round dated December 22, 2022 and addressed to insurance coverage corporations, the fee mentioned the brand new charges will take impact from January 1, 2023.
The round was signed by Leo Akah, director, coverage and regulation, NAICOM, on behalf of the commissioner for insurance coverage.
NAICOM defined that the upward adjustment of charge was pursuant to the regulator’s train of its perform of approving charges of insurance coverage premium underneath part 7 of NAICOM act 1997, and different extant legal guidelines.
Underneath the brand new template, non-public automobiles that had been paying N5,000 premium for N1 million third get together property injury (TPPD) restrict are actually to pay N15,000 premium for N3 million restrict; N5 million restrict for personal items with a premium of N20,000; and employees buses are to pay N20,000 premium for N3 million restrict.
NAICOM mentioned third get together motor insurance coverage gives safety towards damages attributable to an individual’s car to a different particular person’s car or property.
“Pursuant to the train of its perform of approving charges of insurance coverage premium underneath part 7 of NAICOM act 1997 and different extant legal guidelines, the fee, hereby, problem this round on the brand new premium motor insurance coverage charges efficient from 1st January, 2023,” the assertion reads.
“Third get together insurance coverage insurance policies inclusive of Ecowas Brown Card, EBC, shall be as follows: non-public motor, N15,000, TPPD restrict N3 million; 0wn items, N20,000, TPPD restrict N5 million; employees bus, N20,000, TPPD restrict N3 million.”
In response to NAICOM, business vehicles and common cartage pays N100,000 premium for N5 million TPPD restrict; tricycles to pay N5,000 for N2 million TPPD restrict, and bikes to pay N3,000 for N1 million TPPD restrict.
Additionally, “particular sorts’’ of automobiles now have a TPPD restrict of N3 million and premium of N20,000.
The fee added that for complete motor insurance coverage coverage, premium charge shall not be lower than 5 % of the sum insured in spite of everything rebates and reductions.
It additional warned that failure by insurance coverage corporations to adjust to the directive shall appeal to applicable regulatory sanction.
