NAICOM to Announce New Premium Rate for Motor Vehicle Liability Insurance | The Guardian Nigeria News

Nigerian insurance industry players and the National Insurance Commission (NAICOM) have revealed their intention to announce a review of the third party car insurance premium which would come into effect this month.

The commission, together with industry operators, at an industry committee meeting held in Lagos, agreed September (this month) as the deadline for announcing a new rate depressed.

The new rate, which will be an upward revision to the current N5,000 premium paid by motorists, is the result of discussion between a committee made up of the Commission and chief executives of underwriting companies.

Motor vehicle liability insurance is one of the compulsory classes of insurance and the most popular among the six compulsory insurance policies stipulated by the Insurance Act 2003.

This review plan was made public by the Vice Chairman of the Publicity and Communications Sub-Committee, Segun Omosehin, during a briefing on the results of a meeting of the committee held in Lagos.

Omosehin said the regulator has adopted, in principle, the implementation of the ECOWAS brown card and third party motor insurance in Nigeria.

According to him, what remains to be finalized is the applicable premium that will be charged.

He said the team wanted to consider the pros and cons, considering views and concerns before the final decision on the new fee.

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