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Car owners to pay more as NAICOM raises motor insurance premium by 200%

THE National Insurance Commission (NAICOM) has raised the claims and cost of insurance on all classes of motor insurance including motorcycles.

According to NAICOM, third party premium insurance rate for motorists will now go for N15,000 from N5000.

NAICOM also raised claims for motorists to N3 million in the event of an accident.

Buyers of comprehensive motor insurance, shall not pay less than five percent of the sum insured or the price of the vehicle after all rebates and discounts.

The new development was stated in a circular dated December 22, 2022, signed by Director, Policy & Regulation, Leonard Akah with the number ‘NAICOM/DPR/CIR/46/2022’, and issued to all insurance companies on Friday

The highest cost in the new rates is N100,000 for a commercial truck/general cartage which also fetches the policy holders N5 million claims in the event of an accident.

The implication of this to the industry is an improved premium income in the class of business from the Year 2023. Until recently, the motor insurance class has been the major earner of income for some insurance underwriters and this new development will swell their income.

The industry earned a total of N77.7 billion from motor insurance in a period of six months covering April to September 2022. The class of business fetched the industry N32.4 billion between April and June and also, N45.3 billion between July and September.

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