New Motor Insurance Rates

The Federal Government of Nigeria has announced an increase in motor insurance tariff.

In a circular issued by the National Insurance Commission (NAICOM) on 22nd December 2022 and signed by its Director of Policy & Regulation, Dr Leonard Akah, the Commission stated that “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 issue this circular on the new Motor Insurance Premium rates effective from January 1, 2023.”

The new annual motor insurance rates are as follows:

Private Motor Vehicle Insurance

  • Private Vehicles now 15,000 (formerly N5,000) for a Third Party Property Damage (TPPD) limit of N1 million

Commercial Motor Vehicle Insurance

  • Own Goods now N20,000 for a Third Party Property Damage (TPPD) limit of N5 million
  • Staff Bus now N20,000 Own Goods now N20,000 for a Third Party Property Damage (TPPD) limit of N3 million
  • Trucks/General Cartage now N100,000 Own Goods now N20,000 for a Third Party Property Damage (TPPD) limit of N5 million
  • Special Types now N20,000 Own Goods now N20,000 for a Third Party Property Damage (TPPD) limit of N3 million
  • Tricycle now N5,000 Own Goods now N20,000 for a Third Party Property Damage (TPPD) limit of N3 million
  • Motorcycle now N3,000 Own Goods now N20,000 for a Third Party Property Damage (TPPD) limit of N1 million
NEW PREMIUM RATES inclusive of ECOWAS Brown Card (EBC)
S/N CLASS TYPES NEW TPPD LIMIT NEW PREMIUM
1 Private Private Motor N1,000,000 N15,000
2 Commercial Own Goods N5,000,000 N20,000
3 Staff Bus N3,000,000 N20,000
4 Trucks/General Cartage N5,000,000 N100,000
5 Special Types N3,000,000 N20,000
6 Tricycles N2,000,000 N5,000
7 Motorcycles N1,000,000 N5,000

Comprehensive Motor Vehicle Insurance

  • The rate is now a minimum of five per cent (5%) of sum insured after all rebates/discounts.

The new motor insurance tariff takes effect from 1st January 2023.