L-R: Mr Davies Iyasere, Deputy Director/Head,Corporate Communications, NIA, Mr Samuel Ogbodu, Managing Director, Sunu Assurances, Mrs Yetunde Ilori,Director-General, NIA, Mr Akinjide Orimolade, Managing Director, StanbicIBTC Insurance, Mr Rasaaq Salami, Asst. Director/Head, Corporate Communications, NAICOM, Mr Ademola Abidogun, Managing Director, Guinea Insurance at a news conference on campaign for the 3rd party motor insurance on Tuesday in Lagos
Insurers in Nigeria, under the auspices of the Insurers Committee, in collaboration with the National Insurance Commission (NAICOM), say they are embarking on a campaign that will educate more consumers on the new motor insurance premium rates.
The Chairman, Publicity Sub-Committee of the Insurers Committee, Mr Akinjide Orimolade, said this at a news conference on Tuesday in Lagos, on the campaign, tagged, “Small Premium, Big Coverage”.
Orimolade, also the Managing Director of StanbicIBTC Insurance, said the campaign which would begin on July 24 across various medium and social media, would run for three months.
BRANDPOWER reports that NAICOM had on Dec. 22, 2022 approved an increment on the Third Party Motor insurance policy, among other various classes, from N5,000 to N15,000 with effect from Jan. 1.
NAICOM said this in a circular, titled; “New Premium Rate for Motor Insurance” with number: NAICOM/DPR/CIR/46/2022 and signed by Mr Leo Akah, Director, Policy and Regulation, NAICOM, for the Commissioner for Insurance to all insurance companies.
“Pursuant to the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws, the commission hereby issues this circular on the new motor insurance premium rates effective from Jan.1.
“The Third Party Property Damage (TPPD) which is the limit of claims an insured can enjoy on a policy for private motor, will now be N3 million for the new premium of N15,000.
“The limit for own goods will be N5 million, with a new premium of N20,000, premium rate for staff bus is now N20,000 and its TPPD will
be N3 million,” the commission said.
BRANDPOWER reports that according to the regulator, 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 a premium of N20,000.
The commission said that tricycle has a TPPD limit of N2 million and a premium of N5,000, while motorcycle has N1 million and a premium of N3,000.
NAICOM noted that the comprehensive motor insurance policy premium rate shall not be less than five per cent of the sum insured after all rebates or discounts.
Orimolade said that the insurance companies had since started implementation of the new rates as directed, while consumer education continued to dominate discussions at various fora.
“It is in response to the plethora of questions and enquiries received from our clients that the Insurers Committee, through its publicity sub-committee, decided to embark on this short but eventful campaign.
“This is to shed more light on the new rates and generally improve insurance uptake among the citizens.
“This is a Pan-Nigerian campaign that will cover the social media, print, radio jingles and television commercials for the insuring public,” he said.
According to the sub-committee chairman, the campaign would educate the public on the sum assured as claim from the new premium rates, following an accident.
He noted that the insuring public must also build their confidence on the insurance companies, to bear expenses incurred from losses arising from accidents, without them paying out-of-pocket.
