Average premium rate for third party was N2,000 for years 2020 – 2022 – NIA

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Chuks Udo Okonta

The Nigerian Insurers Association (NIA) has decried how insurers through unethical practices suffered huge loses as statistics showed that an average premium rate for third party motor was N2,000 as for the years 2020 – 2022, as against the statutory N5,000.

The Director-General of the NIA Mrs. Yetunde Ilori, stated this at an event in Lagos, adding that the figured was obtained through findings using historical data of years 2020 – 2022.

She noted that the average premium rate for third party, fire & theft was 1.25 per cent and an average premium rate for comprehensive motor insurance was 2.5 per cent as against the statutory 10 per cent.

She projected that the industry is expect to record N149.30 billion premium from motor insurance this year, as against N116.77 billion achieved in year 2022, stating that the projections for 2023 was done with the assumption that the number of vehicles insured for each class of business and values will remain the same, while premium will be at the new rate of N15,000.

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