Nigeria’s 3rd Party Insurance Premium To Be Reviewed

Yemisi Izuora

The Nigeria Insurers Association’s technical subcommittee is about meeting with the National Insurance Commission, NAICOM with the view to determine if there will be a change in the N5000 premium of the third-party insurance policy.

The Insurers Committee said it has the permission of the NAICOM, to review and determine the adequacy of the current premium for the third-party motor insurance policy.

This is coming as the Insurers Committee through its publicity and communication unit announced its resumption of activities and the reduction of its subcommittees which was formerly Eight in number to Six.

Third party motor insurance is a form of insurance under which the insurance company agrees to indemnify the insured person, if he is sued or held legally liable for injuries or damage done to a third party.

It covers accidental damage caused by someone’s vehicle to another person’s vehicle or property.

The Six man publicity and communication committee headed by the Vice Chairperson, Nigeria Insurance Association Mrs Ebelechukwu Nwachukwu made the disclosure in Lagos.

She said that the Nigeria Insurers Association’s technical subcommittee in Conjunction with NAICOM will be having a discussion to determine if there will be a change in the N5000 premium of the third-party insurance policy.

On the basis for the review, she said “when you have a third-party as a policy, it is necessary that from time to time that you will revisit it and the technical and actuarial people will start working on that.”

She assured that the committee which was disrupted by the COVID-19 Pandemic will continue with its activities hence forth adding that the subcommittee now consist of the Corporate governance and ethics, Market Development, Customer Services, Technical and Publicity and Communication subcommittee.

On its rebranding project, she said “despite the suspension of the project, the committee will at the right time resuscitate it and the structure will be different than what it was.

On IFRS 17, She said that the commission has urged all operators to ensure that their data analysis and requirements are ready for the implementation of IFRS 17.

“IFRS 17 will change the note at which numbers are accounted for going forward, it is a very serious accounting structure that we need to take very serious.”

She added that the operators are advised to show more interest in micro insurance and takaful insurance.

“The commission has encourage us to review the guidelines and get back to them if there is any issue on the operators side.”

“Anything that will make the people show more interest on micro insurance the commission will like to get more feedback.”

The Insurers Committee is a body consisting of the National Insurance Commission and chief executive officers of all underwriting Insurance companies in Nigeria. The Committee operates under a mandate to activate the industry’s change agenda, and strategically reposition the Insurance industry

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