NIACOM Raises Third-Party Motor Insurance to N15,000

By Modupe Gbadeyanka

From January 1, 2023, motorists will have to pay N15,000 for third-party motor insurance instead of the current N5,000, according to a circular from the National Insurance Commission (NAICOM), the agency regulating the insurance sector in Nigeria.

This will come as a surprise to many owners of cars, motorcycles and tricycles as the normal N5,000 paid for third-party premium insurance is seen as a gift to insurance firms, which usually do not pay claims to policyholders.

In the notice dated December 22, 2022, with reference number NAICOM/DPR/CIR/46/2022, and signed by the Director of Policy and Regulation, Mr Leonard Akah, to underwriters, the regulator warned that failure to comply with the circular would attract appropriate regulatory sanction, noting that it has the powers to approve the new rates for motor insurance premiums by Section 7 of the NAICOM Act 1997 and other extant laws.

Also, NAICOM increased claims for motorists to N3 million in the event of an accident, while commercial vehicles, trucks/general cartage have a claims limit of N5 million.