NAICOM raises the cost of third-party auto insurance by 200%
The National Insurance Commission (NAICOM) has increased liability insurance coverage for motorists from N5,000 to N15,000 per annum from January 2023.
The approval is contained in a circular: NAICOM/DPR/CIR/46/2022 addressed to insurance companies and dated December 22, 2022.
It was titled: New Premium Rate for Motor Insurance and signed by Director, Policy and Regulation, NAICOM, Leo Akah, for the Commissioner of Insurance.
“In pursuance of the exercise of its function of approving insurance premium rates under Section 7 of the NAICOM Act of 1997 and other applicable laws, the Commission hereby publishes the this circular on new auto insurance premium rates effective January 1, 2023,'' it said.
The commission also said Third Party Property Damage (TPPD), which is the limit of claims an insured vehicle can benefit from on a private vehicle policy, will now be N3 million for the new premium. N15,000.
He said the limit for own property would be 5 million naira, with a new premium of 20,000 naira.
The insurance premium rate to be paid on staff buses is now N20,000 and its TPPD would be N3 million.
READ ALSO:NAICOM said commercial vehicles, trucks and general trucking now have a TPPD limit of 5 million naira with a premium rate of 100,000 naira; "Special Types" now have a TPPD limit of 3 million Naira and a bounty of 20,000 Naira.
Tricycles now have a TPPD limit of 2 million Naira and a bounty of 5,000 Naira, while motorcycles now have a TPPD limit of 1 million Naira and a bounty of 3,000 Naira.
According to NAICOM, the premium rate for the comprehensive insurance policy should not be less than 5% of the sum insured after all discounts or rebates.
The commission warned insurers to be guided by the new policy as non-compliance would be sanctioned appropriately.
(NAN)
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[embedded content]TEXT ANNOUNCEMENT: Call Willie - +2348098788999
The National Insurance Commission (NAICOM) has increased liability insurance coverage for motorists from N5,000 to N15,000 per annum from January 2023.
The approval is contained in a circular: NAICOM/DPR/CIR/46/2022 addressed to insurance companies and dated December 22, 2022.
It was titled: New Premium Rate for Motor Insurance and signed by Director, Policy and Regulation, NAICOM, Leo Akah, for the Commissioner of Insurance.
“In pursuance of the exercise of its function of approving insurance premium rates under Section 7 of the NAICOM Act of 1997 and other applicable laws, the Commission hereby publishes the this circular on new auto insurance premium rates effective January 1, 2023,'' it said.
The commission also said Third Party Property Damage (TPPD), which is the limit of claims an insured vehicle can benefit from on a private vehicle policy, will now be N3 million for the new premium. N15,000.
He said the limit for own property would be 5 million naira, with a new premium of 20,000 naira.
The insurance premium rate to be paid on staff buses is now N20,000 and its TPPD would be N3 million.
READ ALSO:NAICOM said commercial vehicles, trucks and general trucking now have a TPPD limit of 5 million naira with a premium rate of 100,000 naira; "Special Types" now have a TPPD limit of 3 million Naira and a bounty of 20,000 Naira.
Tricycles now have a TPPD limit of 2 million Naira and a bounty of 5,000 Naira, while motorcycles now have a TPPD limit of 1 million Naira and a bounty of 3,000 Naira.
According to NAICOM, the premium rate for the comprehensive insurance policy should not be less than 5% of the sum insured after all discounts or rebates.
The commission warned insurers to be guided by the new policy as non-compliance would be sanctioned appropriately.
(NAN)
Donate
[embedded content]TEXT ANNOUNCEMENT: Call Willie - +2348098788999
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