NAICOM increases third-party vehicle insurance fees by 200%

The National Insurance Commission (NAICOM), has increased the third party insurance cover fee for motorists from the initial amount of N5,000 to N15,000, effective from January 2023.

The new directive was contained in a circular signed by L. M Akah, director of policy and regulation, NAICOM, on behalf of the body insurance commissioner.

The statement reads, “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, issued this circular on the new premium motor insurance rates effective from 1st January 2023.”

According to the commission, comprehensive motor insurance policy premium rate shall not be less than five per cent of the sum insured after all rebates and discounts.

As a result of the new directive,
private motors that were paying N5,000 premium for N1 million Third Party Property Damage (TPPD) limit, are now to pay N15,000 premium for N3 million TPPD, while own goods vehicles are to pay N20 million premium for N5 million TPPD, and staff busses are to pay N20,000 premium for N3 million TPPD.

Also, Commercial trucks and general cartage are to pay N100,000 premium for N5 million TPPD limit; special types are to pay N20,000 for N3 Million TPPD, tricycles to pay N5,000 premium for N2 million TPPD limit while motorcycles are to pay N3,000 premium for N1 million TPPD limit.

The commission however warned that failure to abide by the new directive by insurance firms shall attract appropriate regulatory sanction.