Some insurance consumer groups have kicked against the upward review of the third-party premium rate, describing the policy as economically insensitive and contrary to good faith.
The National Insurance Commission (NAICOM) earlier on December 23rd, 2022, sent a circular to all underwriting firms notifying them of an increase in premium for third-party motor insurance from N5, 000 to N15, 000, effective January 1, 2023.
Displeased with the policy take-off within a week’s notice, the National Coordinator of the Insurance Consumers Association of Nigeria (INSCAN), Yemi Soladoye, urged the regulator to reverse its directive.
Soladoye, on behalf of the association, said the new directive was a deliberate breach of the fundamental principle of utmost good faith and other decent regulatory principles guiding insurance practice.
The association added that NAICOM failed to understand the full implications of its directive, saying those at the receiving end were insurance consumers, who provided the accrued income to the entire insurance industry.
“NAICOM’s reliance on the comparison of what was paid as a premium in other parts of the world as the basis for the premium increment burden on Nigerians was tantamount to daylight robbery on consumers,” INSCAN stated.
The association referred to a notice given by the Central Bank of Nigeria on the currency redesign as well as cash withdrawal limit to the public for feedback and adjustments.
INSCAN added that almost 20 million motor insurance consumers in Nigeria deserved more than a week’s notice for compliance, and therefore, “an insult to have implemented the policy within one week’s notice.”