The mandatory third-party insurance premium for vehicles in Nigeria has been hiked by 200%, from N5,000 to N15,000, by the federal government.
The government also announced that the new rate will start on January 1, 2023.
In a circular sent to all insurance companies over the weekend, Nigeria’s National Insurance Commission, or NAICOM, disclosed these new prices.
The circular headlined “New Premium Rate for Motor Insurance,” signed by Leo Akah, Director of Policy and Regulation at NAICOM, warned citizens against defaulting.
It explained that “under the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws, the commission, as a result of this, issues this circular on the new motor insurance premium rates effective from January 1, 2023.”
It further stated that staff buses and trucks would pay a N20,000 premium, private cars carrying products would pay a N20,000 premium, and general cartage and trucks would pay a N100,000 premium. Some kind of carriage vehicles will also pay the sum of N20,000.
In contrast, motorcycles—commonly referred to as Okadas—will cost N3,000, and tricycles—commonly referred to as Keke Napep—will cost N5,000.
