Following the recent increase in third party motor insurance rate from N5,000 to N15,000 earlier in the year, insurance operators and regulators have agreed to intensify awareness on this class of coverage.
The National Insurance Commission (NAICOM) had earlier issued a circular reviewing rates for Motor Insurance effective January 1, 2023, hence, raising the rate by 200 per cent from N5,000 to N15,000.
This means that each third party vehicle could claim up to N3million to repair the damage done to his vehicle or property. Recall that when the certificate was being sold at N5,000, the maximum claims limit was N1 million but the current hike to N15,000 has further increased the maximum claims limit known as Third Party Property Damage(TPPD) by 200 per cent, to N3 million.
Briefing journalists at the end of the 14th Insurers Committee meeting in Victoria Island, Lagos, on Thursday, members of the Publicity and Communications Sub-Committee, stated that, it was concluded at the meeting that increased awareness on the policy would improve adoption inspite of rate hike.
On his part, the head, Corporate Communications and Market Development, NAICOM, ‘Rasaaq, Salami, disclosed that the campaign will fully kicked off on the 1st of May, 2023 in a move to sensitise the motoring public on the importance of procuring 3rd party motor cover with the new rate, adding that, the merit of the hike is that maximum claims limit has equally surged by 200 per cent.
Stating that increase in the Third Party Property Damage(TPPD) is to the benefits of the motoring public, he stressed that, the market report on acceptability of the new motor rate is positive, believing that the planned campaign on third party motor policy will further increase adoption.
Similarly, he said, there will be series of engagement with state governments and relevant groups in a move to enlighten more motorists on the gains of the policy as well as how to love their claims, assuring that, insurers are equal to the task of paying genuine claims arising from this coverage.
Following this agreement, he said, operators would henceforth, begin advertorials of all outstanding claims to inform claimants of such claims, thereby, facilitating payments of such claims.
In the same vain, a member of the sub committee, who is the managing director/CEO of Universal Insurance Plc, Mr Ben Ujoatuonu said, the whole effort was to ensure documentation and harmonisation of claims payment processes, making it seamless and flexible to claim.
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