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Business News of Sunday, 10 October 2021


Insurers plan to raise price of third party cover

The photo used to illustrate the story The photo used to illustrate the story

The insurance industry has disclosed its plans to fix a new price for the third party motor insurance which will be effective in January 2022.

This was disclosed during the Insurers Committee’s meeting in Lagos.During a press briefing after the meeting, the Chairman, Sub – Committee, Publicity and Communication of the Committee, Ebele Nwachukwu, said that the industry was working on the new price through the Nigerian Insurers Association.“

By January 2022, the regulator should be able to announce a scientific new price for the third party insurance policy that will also include the ECOWAS Brown Card,” she said. According to statutory laws, vehicle insurance includes covers for cars, trucks and motorcycles.The Insurance Act 2003 mandates all motorists to have a minimum of third party motor insurance policy in place.

Section 68 of the 2003 Insurance Act says, “No person shall use or cause or permit any other person to use a motor vehicle on a road unless a liability which he may thereby incur in respect of damage to the property of third parties is insured with an insurer registered under this Act.”It further said that the insurance of this section would cover liability of not less than N1m.

According to the Act, a person who contravenes the provisions of this section commits an offence and is liable on conviction to a fine of N250,000 or imprisonment for one year or both.Despite the fact that the statutory laws of the country stipulate that no motorist should move on Nigerian roads without being in possession of genuine insurance certificates, many motorists have continued to show absolute disregard to this statutory requirement.