Effective January 1, 2023, vehicle owners will pay N15,000 as premium on third party motor insurance per annum.
This is a N10,000 increment from N5,000 premium small vehicle owners pay as premium.
Third party motor insurance covers damage of a third party vehicle and the occupants in an event of an accident.
The National Insurance Commission, (NAICOM) in a circular signed by Director, Policy & Regulation, Mr. Leonard Akah issued to all insurance companies also.said tricycle premium rate will increase to N5000 from N2000 while motor cycle premium rate, popularly known as okada will increase to N3000 from N1000.
NAICOM also directed that Third Party Property Damage, TPPD, which is the limit of claims an insured can enjoy on the policy should be increased to N3 million from N1 million.
The circular said “Third Party Insurance Policies inclusive of Ecowas Brown Card, EBC, shall be as follows: Private motor, N15,000, TPPD limit N3 million; Own goods, N20,000, TPPD limit N5 million; Staff bus, N20,000, TPPD limit N3 million; Commercial trucks/general cartage N100,000, TPPD limit N5 million; special types N20,000, TPPD limit N3 million; tricycle N5000, TPPD limit N2 million; motor cycle N3000, TPPD limit N1 million”
“Comprehensive motor insurance policy premium rate shall not be less than five per cent of the sum insured after all rebates/discounts” it stated.
“Note that failure to comply with this circular shall attract appropriate regulatory sanction” it said