Motorists to get N3m cover from Third Party N15,000 premium
By Patience Ikpeme
Insurers have announced that for a premium of N15,000, motorists can avail themselves of a third-party motor insurance policy that offers N3 million worth of protection against accidents, injuries, and damages.
This coverage extends not only within Nigeria but also throughout the West African sub-region.
The Insurers’ Committee’s Sub-Committee highlighted that this policy is one of the most cost-effective options on a global scale.
Akinjide Orimolade, the Chairman of the Publicity Sub-Committee, emphasized that by paying a N15,000 premium, policyholders can access up to N3 million in protection.
He added that insurance remains the most reliable method to safeguard lives, properties, and mitigate unforeseen risks.
Orimolade pledged that insurers will continue to prioritize policyholders’ well-being by providing them with beneficial policies.
As a part of this commitment, an education campaign titled ‘Small Premium Big Coverage’ will be initiated. The goal is to educate the public about the advantages of embracing insurance.
Orimolade revealed that the new rates introduced on January 1, 2023, entail a N15,000 premium for private motor vehicles with N3 million claims, N5 million claims for Own Goods with a N20,000 premium, N3 million claims for Staff Bus with a N20,000 premium, N5 million for Commercial Trucks/General Cartage with a N100,000 premium, N3 million for Special Types with a N20,000 premium, N2 million for Tricycle with a N5,000 premium, and N1 million for Motorcycle with a N3,000 premium.
The circular issued by the National Insurance Commission (NAICOM) states that the comprehensive motor insurance policy premium rate must not be less than 5% of the sum insured after rebates/discounts.
Insurance companies have already begun implementing these new rates, and consumer education remains a key focus in various discussions.
To address the multitude of questions and inquiries from clients, the Insurers’ Committee, through its Publicity Subcommittee, has decided to organize a short yet impactful campaign. This campaign aims to bring further clarity to the new rates and enhance the adoption of insurance among citizens.
The campaign will encompass a nationwide effort through social media, print, radio jingles, and television commercials. The industry anticipates significant publicity throughout the three-month duration of the campaign.
