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Chuks Udo Okonta
Insurance brokers and agents have applauded the National Insurance Commission (NAICOM) for the N5 million and N3 million claims value to be enjoyed by insured motorists when the new motor insurance rates begin in January 1, 2023.
They said the new claims regime would impact the lives of insured motorists positively as it has enhanced their claims value.
The Deputy President Nigerian Council of Registered Insurance Brokers (NCRIB) Tunde Oguntade, said the new premium and claims regime is one of the best things to have happened recently in the insurance industry as it would help address the soaring cost of repairing vehicles.
He commended the leadership of NAICOM for taking the bold step to meet the needs of the market.
He implored motorists to consider the value created by the new regime which moved claims limit from N1 million to N3 million for private third vehicles and N5 million for commercial, stressing that it has been difficult to repair most vehicles with N1 million owing to the high cost of spare parts.
National Vice President, Association of Registered Insurance Agents of Nigeria (ARIAN) Kehinde Jegede, sees the introduction of new premium for auto insurance as a development that would aid better service and improvement of claim settlement for motor insurance policyholders.
He noted that with the new rate and NAICOM’s monitoring, all the stakeholders shall have fair sharing.
“Worth mentioned, to say this development shall bring about the industry contribution to Gross Domestic Product (GDP) in a positive way,” he said.
He submitted that motorists with genuine policy shall have access to timely indemnity, as confident of the public on insurance will be reassured.
The present premium regime, he said does give room for better service, adding that with the new introduction of premium rates and regulations, members of the public shall be better served.
He urged members of the public to beware of fake insurance agent or brokers to avoid having fake insurance policy.
NAICOM) has said from January 1, 2023, private third party motor insurance policy premium will be N15,000 as against N5000 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’s Institutions.
NAICOM stated that pursuant to the exercise of its functional of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws, the commission hereby issue this 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 N3 million Third Party Property Damage (TPPD) limit for private motor; N5 million limit for own goods, with premium of N20,000; staff bus premium, N20,000 and TPPD, N3 million.
For commercial vehicles, trucks/general cartage has TPPD limit of N5 million, premium N100,000; special types, TPPD limit of N3 million, premium N20,000; tricycle, TPPD limit N2 million, premium N5000 and motorcycle, TPPD limit N1 million; premium N3000.
The insurance industry regulator submitted that comprehensive motor insurance policy premium rate shall not be less than five per cent of the sum insured after all rebates or discounts.