With effect from January 1, 2023, the National Insurance Commission (NAICOM), has approved new premium rates for new policies and renewals for private and commercial motor insurance as well as new limits for third party damage claims.
A circular by the Director, (Policy & Regulation), Leo M. Akah, outlined the new premium rates as it applies to class, types, new TPPD (Third Party Property Damage) limit and new premium.
In the new dispensation from next year, private motor, own goods and staff bus have a respective TPPD of N3 million, N5 million and N3 million while the assigned new premium are, N15,000.00, and N20,000.00 for both own goods and staff bus.
The commercial class new premium rates were also stated for trucks/general cartage and special types with N5 million and N3 million TPPD respectively. The new premium rates are N1000,000.00 and N20,000.00. For tricycle and motor cycle, the new TPPD is N2 million and N1 million while their respective new premium are N5,000.00 and N3,000.00.
NAICOM circular cleared that comprehensive motor insurance premium rate shall not be less than five percent of the sum assured after all rebates/discounts.
Drawing its authority from Section 7 of NAICOM Act 1997 and other extant laws, NAICOM stated that “failure to comply with this circular shall attract appropriate regulatory sanction.”