When the National Insurance Commission in the penultimate week December 2022 announced new tariff for all the range of mobile mechanical devices ranging from motorcycles to tricycles and to lords of the range; private and commercial vehicles and trucks, words that flowed from news desks and IT devices were woven round increase, hike, upgrade and such like.
This caught the attention of first, the national Insurance Commission (NAICOM) and almost following after, the Nigerian Insurers Association (NIA). Event that followed showed that the expression in the media on the lane of ‘increase’ and ‘hike’ did not convene what both expected media interpretation to be. In the first meeting of the Commissioner for Insurance, Sunday Thomas and Chief Executive Officers of insurance companies, it was evident that what they ticked as right word should be dropped in the media.
The opportunity came the day for the first media parley with new NIA Chairman, Olusegun Omosehin (pictured) where the word premium ‘adjustment’ was set as a replacement for and other word used to describe the new motor premium, and also relate with the public that the adjustment has been long coming with higher levels of obligation for insurers.
Sitting at arms length from the Chairman was NAICOM Head of Corporate Affairs and Market Development, Rasaaq Salami, who’s presence was to deliver the preferred word and douse public discontent as regards accepting the motor premium as increase but an adjustment to reflect underwriting experiences and bring to align with the ECOWAs Brown card for motor insurance.
The motor premium NIA and NAICOM emphasised was not limited to premium alone but also affected insurers liability to third party. The adjusted motor tariff raised third party property damage TPPD from N1 million to N3 million.
