The Federal Government has increased the amount payable on the compulsory vehicle third-party insurance by motorists in Nigeria to N15,000 from N5,000, representing a 200 per cent increase.
Also, the government stated that the new rate will commence by January 1, 2023.
Nigeria’s apex insurance regulator, the National Insurance Commission, NAICOM, made this disclosure in its new rates in a circular issued to all insurance firms at the weekend.
The circular titled, ‘New Premium Rate for Motor Insurance,’ signed by NAICOM’s Director of Policy and Regulation, Leo Akah, warned against defaulting.
It explained that “Under the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws, the commission, as a result of this, issues this circular on the new motor insurance premium rates effective from January 1, 2023.”
It added that private vehicles carrying goods would pay a N20,000 premium, staff buses would also pay a N20,000 premium, and trucks and general cartage would pay N100,000. A particular type of carriage vehicle also will pay N20,000.
In contrast, tricycles, commonly called Keke Napep, will pay N5,000 and motorcycles, popularly called Okada, will pay N3,000.