As on January 1, 2023, third-party auto insurance will cost N15,000.
In the event of an accident, policyholders with third party insurance may now seek compensation of up to N3 million.
This is due to the National Insurance Commission (NAICOM) raising the premium rate for all types of vehicle insurance beginning on January 1, 2023.
The increase in insurance premiums and claims was announced in a circular addressed to all insurance institutions with the heading “New Premium Rates For Motor” and signed by Mr. Leo Akah, Director of Policy and Regulation at NAICOM.
The third-party policy, which is the least expensive and most widely used type of insurance in Nigeria, has been increased to N15,000 annually from N5,000, a 200 percent increase.
Holders of comprehensive automobile insurance plans will be required to pay a minimum of 5% of the insured amount or the vehicle’s price (minus all discounts and rebates).
The most expensive premium under the new rates is N100,000 for a general cartage or commercial vehicle, which also entitles policyholders to N5 million in claims-paying privileges in the event of an accident.
