NAICOM may extend implementation date of new premium regime


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Chuks Udo Okonta

Owing to opposition from different stakeholders on the new premium and claims regime announced by National Insurance Commission (NAICOM) which ought to fully commenced today January 1, 2023, the insurance regulator may consider extension of the date to give room for robust consultation.

Inspenonline gathered that insurers, brokers, motorists and activists, have stampeded NAICOM with request for extension on the date to enable them prepared for the new regime.

It was gathered that most of the stakeholders are not opposed to the premium and claims, but they are against the short time given to motorists to comply.

Another concerned expressed by the aggrieved stakeholders is the intensed political situation of the country. They are worried that plights of motorists should not be compounded as they are struggling to buy fuel due to soar pump price brought about by scarcity of the product.

A broker who expressed misgivings on the short time given for implementation of the policy, stated that most brokers have sent out quotations to their clients and it wouldn’t be proper to proceed to withdraw the quotations now, as that would show that they are not on the same page with their regulator.

Inspenonline learnt that NAICOM is already considering a concession which may be to yield to the demand by stakeholders for an extension of six months period for proper sensitisation and engagement.

This medium exclusively gathered that the extension date may be announced immediately after the new year holiday.

NAICOM has said from today, 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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