The new tariff for third party motor insurance originally scheduled to take effect from January1 2022 is still not approved due to the need to extend consultations beyond the corridors of the insurance market including experiences of the ECOWAS Brown Card insurance.
The chairman, Nigerian Insurers Association (NIA) Mr Ganiyu Musa at a recent press briefing in Lagos, said the regulator and operators resolve to intervene with enhanced price and new limit for third party damage has not been abandoned but in the intervening period consultations with other stakeholders are ongoing . He said the engagement between the operators and the National Insurance Commission has been concluded and the expectation is that the new tariff will be out soon.
He said because the expected new tariff affects the general public who like the insurance industry are also stakeholders its therefore expected, “there are other considerations that need to be heard and consultations the Commission needs to make to make sure its properly taken into consideration the interests of all stakeholders.”
NIA helmsman who is the chairman of the ECOWAS Brown Card Bureau, said consultations and considerations go beyond the local borders. He said there is the West Africa dimension to the new tariff. “One of the motivations for us (Nigeria market) is that we need to harmonise our partnership claims settlement with the ECOWAS Brown Card Insurance Scheme. We have seen a lot of issues with settlement of third party claims happening in Nigeria which is currently subject to the different set limits and regulations.
“Part of the justification for that increase and harmonisation is such that any exposure to non-resident risk within Nigeria will no longer create issues. We have seen very embarrassing situations where authorities in neighbouring countries will take very drastic actions against Nigerian drivers or road users in other west African countries.
Musa said the soon coming tariff will not only address the issue of pricing but also the limit for third party property damage will go up and unlimited for body injuries “to bring it in line with operating environment.”
He assured that as soon as all the considerations are concluded, the roll out of the new tariff by the National Insurance Commission will take effect.
