The National Insurance Commission (NAICOM) the insurance regulatory body in Nigeria has issued a circular on the 22nd of December 2022 for the new rates for vehicle Insurance in the country.
The motor Third Party insurance which is the basic policy every vehicle owner should have according to the NAICOM Act 1997 will no longer be N5,000 for private vehicles but N15,000 effective from 1st January 2023 according to the directive by the NAICOM. Also, the rates for all the commercial vehicle insurance policies have also increased by average of 200%. Typical commercial motors and staff buses will have to pay N20,000 for new Third Party insurance rates or premium. New premium rates for Trucks and Tricycles are N100,000 and N5,000 respectively.
Aside the new rates that have been applied to the Motor Third Party Insurance, the Third Party Property Damage Liability (TPPD) have also being increased. Due to constant increase in inflation rate and cost of living in Nigeria, its expedient to ensure TPPD indeed cover liabilities in line with the current realities. New TPPD for Private Motor Vehicle Insurance is now N3m and for commercial vehicles ranges between N3m to N5m depending on the type.
Most vehicle owners in Nigeria see motor Third Party Insurance as a ritual to evade the harassments of traffic Enforcement Agencies. However, with proper education of the populace on getting authentic Motor Insurance from good insurance companies, there will be no issues of road blockage, argument and fighting when there are collision of vehicles as 3rd party insurance polices will be able to provide enough cover for the people.
The directive from NAICOM also pegs the new rate for Comprehensive Insurance at 5% of the sum insured after all rebate and discount. Meanwhile servpay.ng offers affordable and reliable Motor Third Party Insurance for both private and commercial vehicles in 5mins from one of the flagship insurance company in Nigeria. Click here to get started.
