Insurers woo motorists with N5000 third party cover in last minute deal

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Chuks Udo Okonta

Insurance companies are reaching out to prospective vehicle owners to quickly insure their vehicles today at the rate of N5000 before the implementation of the new premium tariff of N15,000 which commences tomorrow, January 1, 2023.

Inspenonline obtained a message sent by an insurance company and it reads:
“Dear Customer, the new price for motor insurance takes effect from January 1, 2023. Third Party will be N15,000 and Comprehensive at five per cent onwards. You can still buy/renew at current rates today.”

Inspenonline in an interaction with a member of staff of National Insurance Commission (NAICOM) gathered that third party vehicle policyholders that bought N5,000 cover would in the new premium regime be entitled to provisions provided by the premium, which is N1 million claims benefit as against N3 million provided in the new regime.

NAICOM has said from tomorrow, 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.

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