NAICOM hikes premium rates for motor insurance in Nigeria from January 2023

The Nigerian government, via the National Insurance Commission (NAICOM) has hiked the premium rate for vehicle insurance in Nigeria from January 1, 2023.

In the new rate, private vehicles, which paid an N5,000 premium for the N1 million Third-Party Damage (TPPD) limit, are required to pay an N15,000 premium for N3 million. In contrast, owners of good vehicles are to pay N20 million for N5 million, and staff buses must pay N20,000 for N3 million.

According to BusinessDay, the new directive is contained in a circular issued on December 22, 2022, by NAICOM and sent to all insurance firms.

Leonard Akah, Director of Policy and Regulation at the Commission, signed the directive on behalf of the Commissioner for Insurance.

He said: “Pursuant to the exercise of its function of approving insurance premium rates under section 7 of NAICOM Act 1997 and other extant laws, the commission hereby issues this circular on the new Motor Insurance Premium rates effective from January 1 2023.”

Commercial trucks and general cartage are required to pay N100,000 for N5 million TPPD; tricycles are required to pay N5,000 for N 2 million TPPD limit.

Motorcycles are to N3,000 for N1 million TPPD limit. Also, comprehensive motor insurance policies are required to pay anything at least five per cent of the sum insured after all rebates and discounts.