THE Federal Government, through the National In- surance Commission (NAI- COM), has approved new premium rates for private and commercial motor in- surance with effect from January 1, 2023.
A circular by the Director, (Policy and Regulation), Leo Akah, outlined the new pre- mium rates as it applies to class, types, new Third Party Property Damage (TPPD) limit and new premium.
Third Party Property Dam- age (TPPD) is the limit of claims an insured can enjoy on the policy.
The circular, with the ref- erence number NAICOM/ DPR/CIR/46/2022, dated December 22, 2022 and ad- dressed to all insurance in- stitutions with the subject, “New Premium Rates for Motor Insurance,” the com- mission said, “Pursuant to the exercise of its function of approving rates of insur- ance premium under Sec- tion 7 of NAICOM Act 1997 and other extant laws, the commission hereby issues this circular on the new mo- tor insurance premium rates effective from January 1, 2023”.
It spelt out the rates for Third Party insurance poli- cies inclusive of Ecowas Brown Card (EBC).
Under the new tariff re- gime, from next year, pri- vate motor, own goods and staff bus have a respective TPPD of N3 million, N5 mil- lion and N3 million while the assigned new premium are, N15,000 and N20,000 for both own goods and staff bus.
NAICOM also stated the commercial class new pre- mium rates for trucks/gener- al cartage and special types as N5 million and N3 million TPPD respectively, while the new premium rates are N100, 000 and N20, 000.
