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Govt to enforce N1,000 compulsory insurance on motorbike operators

NAICOM-house

NAICOM

Nike Popoola

 The National Insurance Commission is set to begin the enforcement of third party insurance on owners/operators of motorcycles nationwide under the Insurance Act.

NAICOM also stated that N1,000 would be paid as an annual premium by each motorcycle operator to secure the compulsory insurance cover.

The commission said, in a circular obtained by our correspondent on Friday, “All insurance operators are directed to henceforth comply with the existing approved premium rates for all compulsory classes of insurance.”

It stated in the circular that the premiums to be paid on a private vehicle remained N5,000; while a commercial vehicle (for goods) and commercial vehicle (a staff bus) would pay N7,500 each.

NAICOM gave the charges on commercial vehicles (trucks) as N25,000; motorcycle (power bike and official ride), N1,000; while commercial vehicles (road/premises risks) and special type (ambulance/ hearses) would attract N5,000 each.

In the circular, the commission gave the premiums to be charged on builders’ liability insurance, occupiers liability (public building) insurance and healthcare professional indemnity insurance.

It also specified the rates to be paid on assets owned by the federal, states and local governments, as well as individual and private organisations.

“The commission will strictly monitor compliance,” the circular stated.

Recently, the Commissioner for Insurance, Alhaji Mohammed Kari, when led a delegation of the commission on a courtesy visit to Kaduna State Governor, Malam Nasir El-Rufai, said that NAICOM would meet with the state governors on the implementation of the compulsory insurance policies.

The commissioner said that NAICOM had developed guidelines that would enhance smooth collaboration and partnership with state governments.

He said that benefits that would accrue to the states from the collaboration would include the provision of genuine insurance products; opening of another veritable source of Internally Generated Revenue for the state governments; creation of employment opportunities for the citizens; and relieving the government of the burden of compensating victims of accidents or natural disasters.

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