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Chuks Udo Okonta
Nigerian motorists driving within the West Africa sub-region would not bother to buy Economic Community of West African States (ECOWAS) Brown Card as it has been captured in the new premium for third party vehicle that will be on sales from tomorrow January 1, 2023.
The Head of Corporate Communications and Market Development, National Insurance Commission (NAICOM) Rasaaq Salami, exclusively told Inspenonline that the premium for brown card has been embedded in the new N15,000 premium for third party vehicle insurance.
The brown card provides the motorist complete guarantee for a prompt, fair and immediate compensation for any accident he/she may cause outside his habitual residence country.
The cardholder is treated exactly as if the basic insurance policy was underwritten with a company located in the country visited or through which it transits.
Since the brown card is recognized by the government authorities, the motorist is exempted from any other formality relating to the guarantee against the risks of civil liability.
Other benefits from the new premium rate according to the NAICOM’s spokesman include; N3 million claims on damages and limitless life cover for accident victims.
He implored Nigerians to embrace the new rate to enable them enjoy benefits that would accrue from it.
He submitted that the new rate became necessary due to the cost of fixing damaged vehicle, stressing that presently, it is difficult to use N5,000 third party policy to fix an accident with exotic vehicles which cost of maintenance has gone up in recent times.
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 issuej 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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