With the increase in the mandatory Motor Third Party Insurance Premium from N5000 to N15000, motorists traveling in West African nations would no longer need to obtain an Economic Community of West African States (ECOWAS) Brown Card, the National Insurance Commission (NAICOM) has revealed.
The commission’s newest statement on the obligatory motor insurance premium follows the Insurance Consumers’ Association’s recent appeal for an immediate reversal of the new motor insurance premium policy.
NAICOM’s head Corporate Communications and Market Development, Rasaaq Salami, noted that the ECOWAS Brown card has been captured in the upgraded premium for Motor Third Party insurance, adding that motorists driving within the West Africa sub-region would not bother to buy the ECOWAS Brown Card again.
The brown card provides the motorist complete guarantee for a prompt, fair and immediate compensation for any accident he/she may have outside his habitual residence country.
The cardholder is treated exactly as if the basic insurance policy was underwritten with a company located in the country visited or through which it transits.
Since the brown card is recognised by the government authorities, the motorist is exempted from any other formality relating to the guarantee against the risks of civil liability.
Other benefits from the new premium rate according to the NAICOM’s spokesman include; N3 million claims on damages and limitless life cover for accident victims.
Salami therefore implored Nigerians to embrace the new rate to enable them enjoy benefits that would accrue from it.
He submitted that the new rate became necessary due to the cost of fixing damaged vehicle, stressing that presently, it had become difficult to use N5,000 third party policy to fix an accident with exotic vehicles which cost of maintenance has gone up in recent times.
According to the NAICOM’s directive, from January 1, 2023, premium rate for Motor Third Party Insurance for private vehicles becomes N15,000 as against N5000 previously charged.
NAICOM also approved N3 million Third Party Property Damage (TPPD) limit for private motor; N5 million limit for own goods, with premium of N20,000; staff bus premium, N20,000 and TPPD, N3 million.
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