From January 1, 2023, policyholders of Motor third-party insurance stand to gain more from the industry as they will now earn N3 million claims in the event of an accident.
The new benefit to motor policyholders which was contained in a circular dated December 22, 2022, from the National Insurance Commission (NAICOM), also raised the cheapest and the most popular class of insurance in the country from N5,000 to N15,000, indicating a 200 per cent increase.
In the circular signed by its Director, Policy, and regulation, Leo Akah to all insurance institutions entitled, “New Premium Rates For Motor”, the sector regulator raises the claims and cost of insurance on all classes of motor insurance including motorcycles.
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The highest cost in the new rates is N100,000 for a commercial truck/general cartage which also fetches the policyholders 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.
NAICOM in the new rates which states that third-party insurance policies are inclusive of the Ecowas Brown Card also approved an N20,000 premium for Own goods motor insurance while the policyholders will collect N5 million claims in the event of an accident.
The new development fixed the premium rate on a staff bus at N20,000 while the insured can collect N3 million claims in the case of an accident.
For commercial vehicles, trucks/general cartage has a claims limit of N5 million while the new premium is N100,000; special types of insurance have a claims limit of N3 million while the new premium is N20,000, and owners of tricycles will pay N5,000 for insurance of each to enjoy N2 million claims.
For motorcycle insurance, the new premium is N3,000 while the claims limit is now N1 million.