News
FG Raises Premium Rates For Vehicle Insurance
The FG has raised the premium rates for vehicle insurance.
Eko Hot Blog reports that vehicle owners in Nigeria are set to pay higher premium rates for insurance after the Federal Government, through the National Insurance Commission (NAICOM), increased the rates.
EDITOR’S PICKS
The commission made the disclosure in a circular dated December 22, 2022, and signed by Leo Akah, director, policy and regulation, NAICOM, on behalf of the commissioner for insurance.
In the circular addressed to insurance companies, NAICOM noted that the new rates will take effect from January 1, 2023.
It explained that the new template mandates private vehicles who were paying N5,000 premium for N1 million third party property damage (TPPD) limit to now pay N15,000 premium for N3 million limit; N5 million limit for own goods with a premium of N20,000; and staff buses are to pay N20,000 premium for N3 million limit.
According to NAICOM, third party motor insurance offers protection against damages caused by a person’s vehicle to another person’s vehicle or property.
“Pursuant to the exercise of its function 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 premium motor insurance rates effective from 1st January, 2023,” the statement reads.
“Third party insurance policies inclusive of Ecowas Brown Card, EBC, shall be as follows: private motor, N15,000, TPPD limit N3 million; 0wn goods, N20,000, TPPD limit N5 million; staff bus, N20,000, TPPD limit N3 million.”
The commission also disclosed that commercial trucks and general cartage will pay N100,000 premium for N5 million TPPD limit; tricycles to pay N5,000 for N2 million TPPD limit, and motorcycles to pay N3,000 for N1 million TPPD limit.
Similarly, “special types’’ of vehicles now have a TPPD limit of N3 million and premium of N20,000.
FURTHER READING
NIACOM warned that failure by insurance firms to comply with the directive shall attract appropriate regulatory sanction.
Click here to watch our video of the week:
Advertise or Publish a Story on EkoHot Blog:
Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.
Citizen journalists will receive a token as data incentive.
Call or Whatsapp: 0803 561 7233, 0703 414 5611
