Business

Motorists lament as new motor premium insurance rates kick-off

Published

4 years ago

January 3, 2023

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Motorists are expressing sadness over the increasing financial burden imposed with the kick-odd of the new motor premium insurance rates on Tuesday.

The National Insurance Commission (NAICOM) had last December announced intention to increase premium rates 1st January 2023. But because of the public holidays, it took effect on Tuesday.

The rates for third -Party were increased by 200 per cent from N5,000 to N15,000.

Vehicle owners are not happy that, while income remains constant and in some cases dwindling, the NAICOM found it necessary to increase the misery of vehicle owners in the country.

James Oko, a commercial driver said, this will in the long run add to transportation cost, as the additional expenses will have to be passed on to final consumers – passengers.

Olu Fagba, a retired civil servant said both government and the private sector have become highly inconsiderate of the populace they are meant to serve.

“The banks are perhaps the worst culprits. They have introduced charges at these hard times that will make our ancestors turn in their graves’ ‘, he said.

The NAICOM also, however, increased the benefits to motorists including those on the most popular third-party class to N3 million from N1 million.

Although the regulator had specified Sunday, January 1 as the kick-off date of the new rates, the date, however, fell on a weekend while Monday, January 2 was also a public holiday on which underwriting firms did not open for business.

The policy was a kind of blessing to the insurance industry as policyholders that have abandoned insurance, came back to renew at the old rate of N5,000 to beat the new rates of N15,000 for the most popular class, the third-party.

But those whose motor insurance is not due immediately are angry that the industry regulators are insensitive to the plight of Nigerians.

“I think they are intentionally pushing people to the wall, and it will be very unpleasant when they eventually react”, said Moji Adesuwa, a business woman in Lagos.