Uyai-Abasi Etido

The Federal Government has increased the amount payable on the compulsory vehicle third-party insurance by motorists in Nigeria from N5000 to N15,000.

The government stated that the new rate of 200 percent increase will commence by January 1, 2023.

This disclosure was made by the Nigeria’s apex insurance regulator, National Insurance Commission, NAICOM, in a circular titled ‘New Premium Rate for Motor Insurance’ which was issued to all insurance firms at the weekend and signed by NAICOM’s Director of Policy and Regulation, Leo Akah, warned against defaulting.

The circular reads: “Under the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws, the commission, as a result of this, issues this circular on the new motor insurance premium rates effective from January 1, 2023.”

Noting that private vehicles carrying goods would pay a N20,000 premium, staff buses would also pay a N20,000 premium, and trucks and general cartage would pay N100,000. A particular type of carriage vehicle also will pay N20,000.

In contrast, tricycles, commonly called Keke Napep, will pay N5,000 and motorcycles, popularly called Okada, will pay N3,000.