FG Raises Third-Party Vehicle Insurance from N5,000 to N15,000

The Federal Government,FG, has raised the amount payable on the compulsory vehicle third-party insurance by motorists in Nigeria from N5,000 to N15,000.
This is contained in a circular issued by Nigeria’s apex insurance regulatory body, the National Insurance Commission, NAICOM in its new rates to all insurance firms at the weekend.
The development represent a 200 per cent increment.

The circular revealed that the new rate will commence by January 1, 2023.

The circular titled, ‘New Premium Rate for Motor Insurance,’ signed by NAICOM’s Director of Policy and Regulation, Leo Akah, warned against defaulting.

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

It further stated that private vehicles carrying goods would pay a N20,000 premium, staff buses would pay a N20,000 premium and trucks and general cartage would pay N100,000.

Similarly, a particular type of carriage vehicle is expected to pay N20,000.

On the contrary, tricycles, commonly called Keke Napep, will pay N5,000, while motorcycles, popularly called Okada, will pay N3,000.