‘Payment of New Rate on Motor Vehicle Insurance Would Guarantee Indemnity”

Michael Olugbode in Abuja

A non-governmental organisation, Transparent Protection Limited/Gte (TPL) has called on the public to support the recent hike in Motor Vehicle Third Party Insurance cover for motorists from N5,000 to N15,000, insisting that it remains the only criteria for insurance companies to pay indemnity to accident victims in the country.

Speaking at a press conference in Abuja, the Director, Transparent Protection Limited/Gte, Dr. Sam Onyeka said the recent decision by the National Insurance Commission (NAICOM) was in the best interest of all stakeholders, insisting that there was no way insurer would pay the required indemnity when the cost of insurance was as low as N5,000.

He said: “TPL is aware that in December 2022, The National Insurance Commission (NAICOM) released a circular where it announced a raise in the premium of compulsory Motor Vehicle Third Party Insurance cover for motorists from N5,000 to N15,000 with effect from January 2023.

Consequently, from January 1st 2023, the Third-Party Property Damage (TPPD) which is the limit of claims an insured can enjoy on a policy for private vehicle has now been increased to N3 million for the new premium of N15,000. While the limit for own goods has been increased to N5 million, with a new premium of N20,000. Insurance premium rate payable on staff buses is now N20,000 and its TPPD would be N3 million.

He said, “Commercial vehicles, trucks and general cartage now has a TPPD limit of N5 million with N100,000 premium rate; “special types’’ now has a TPPD limit of N3 million and premium of N20,000. Tricycles now have a TPPD limit of N2 million and premium of N5000 while motorcycles now have a TPPD limit of N1 million and premium of N3000.

“At the same time, we have also observed calls from members of the public against the increment and demands that the increment be reversed due to the current dire state of the Nigerian economy and inflation.”