Third party motor insurance policy now N15,000 from N5000
Tamarauemi Ebimini
Private vehicle owners will from January 1, 2023 purchase the compulsory Third Party Motor Insurance policy at N15,000 as against the N5,000 present rate.
Consequently, private vehicle owners are now covered to the tune of N3 million for Third Party Property Damage (TPPD). TPPD means Third Party Property Damage. It is the limit of claims an insured can enjoy on the policy.
This means that the third party’s vehicle would be repaired to the tune of N3 million instead of N1 million.
In the same vein, the premium for staff bus has risen to N20,000 with a TPPD of N3 million; N5 million limit for own goods, with a premium of N20,000.
Commercial vehicles, trucks/general cartage has TPPD limit of N5 million with a premium cost of N100,000; Special types, TPPD limit of N3 million with a premium of N20,000; Tricycle, TPPD limit N2 million with a premium N5000; and Motorcycle, TPPD limit N1 million with a premium of N3000.
The National Insurance Commission (NAICOM) approved the new rates following a series of meetings between the Commission and insurance companies in the country.
The approval was contained in a circular entitled; New Premium Rate for Motor Insurance: numbered: NAICOM/DPR/CIR/46/2022, dated,; December 22, 2022; signed by the Director, Policy and Regulation, NAICOM, Leo Akah for the Commissioner for Insurance Sunday Thomas and sent to all insurance Institutions.
