Mohammed Shosanya
Nigeria Insurers under the Insurers Committee in collaboration with the National Insurance Commission (NAICOM) flagged-off campaign for the new motor insurance premium rates in the country on Tuesday
The Chairman, Publicity Sub-Committee of the Insurers Committee, Mr Akinjide Orimolade,said at a news briefing in Lagos said that the campaign is tagged : ‘Small Premium, Big Coverage’.
It will begin on July 24 across various medium and social media and would run for three months.
NAICOM had on Dec.22,2022 approved increment on the Third Party Motor insurance policy, among other various classes, from the former N5000 to N15,000, with effect from Jan.1.
The regulator announced this in a circular titled; New Premium Rate for Motor Insurance with number: NAICOM/DPR/CIR/46/2022, signed by the Director, Policy and Regulation, NAICOM, Mr Leo Akah For the Commissioner for Insurance to all insurance companies.
“Pursuant to the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws, the commission hereby issue this circular on the new motor insurance premium rates effective from Jan.1.
“ The Third Party Property Damage (TPPD) which is the limit of claims an insured can enjoy on a policy for private motor will now be N3 million for the new premium of N15,000.
“ The limit for own goods would be N5 million, with a new premium of N20,000, premium rate for staff bus is now N20,000 and its TPPD would be N3 million,” the commission said.
According to the regulator, commercial vehicles, trucks and general cartage now has a TPPD limit of N5 million with N100,000 premium rate, special types now has a TPPD limit of N3 million and premium of N20,000.
The commission stated that Tricycle now has a TPPD limit of N2 million and premium N5000 while motorcycle now has a TPPD limit N1 million and premium of N3000.
NAICOM noted that the comprehensive motor insurance policy premium rate shall not be less than five per cent of the sum insured after all rebates or discounts.
He stated that the insurance companies have since commenced implementation of the new rates as directed, while consumer education continues to dominate discussions at various fora.
“It is in response to the plethora of questions and enquiries received from our clients that the Insurers Committee through its publicity sub-committee decided to embark on this short but eventful campaign.
“This is to shed more light on the new rates and generally improve insurance uptake among the citizens. This is a Pan-Nigerian campaign that will cover the social media, print, radio jingles and television commercials for the insuring public,” he said.
Photo Caption
L-R: Davis Iyasere, Head, Corporate Affairs/Human Resources, Nigerian Insurers Association (NIA); Managing Director/CEO, Sunu Assurance Plc, Mr. Samuel Samuel Ogbodu; Director General, Nigerian Insurers Association (NIA), Mrs Yetunde Ilori; Managing Director/CEO, Stanbic IBTC Insurance, Mr Mr. Akinjide Orimolade; Deputy Director, Corporate Communications/Market Development, National Insurance Commission (NAICOM) and the Managing Director/CEO, Guinea Insurance Pllc, Mr Ademola Abidogun all members of the Publicity Sub-Committee of the Insurers Committee in a group photograph shortly after the press conference to announce the flag-off of the ‘Small Premium, Big Coverage’ campaign on new premium rates for motor insurances today in Lagos.