The National Insurance Commission (NAICOM) says beginning from January 1, 2023, owners of private and commercial vehicles will pay more for insurance cover in Nigeria.

The approval of the new rate is contained in a circular titled; ‘New Premium Rate for Motor Insurance’ with reference number NAICOM/DPR/CIR/46/2022, dated December 22, 2022.

The Director, Policy and Regulation, NAICOM, Mr Leo Akah signed the circular on behalf of the Commissioner for Insurance, Mr Sunday Thomas.

The approval, in line with Section 7 of NAICOM Act 1997 and other extant laws give NAICOM the power to exercise the function of approving rates of insurance premium

According to the new premium rate, the third party vehicle insurance which was previously N5,000 is now N15,000 with Third Party Property Damage (TPPD) of N3,000,000.

Similarly, for commercial vehicles, which comprise of staff buses and own goods vehicles, the new premium rate is N20,000 each while they can make claim to a limit of N3m and N5m respectively.

Meanwhile, while trucks are to pay a premium rate of N100,000, they can enjoy TPPD of N5m, motorcycle owner and tricycle are to pay N3, 000 and N5, 000 respectively and enjoy a TPPD of N1m and N2m respectively.

As for comprehensive motor insurance policy, NAICOM said that premium rate would not be less than five per cent of the sum insured after all rebates or discounts.

The Commission has also warned insurance companies that failure to comply with the circular would attract appropriate regulatory sanction.