NAICOM releases approved rates for compulsory insurance

The National Insurance Commission (NAICOM) as part of efforts to curb the increasing challenge of rate cutting in the industry, released approved rates for compulsory classes of insurance to the operators. The approved rates for compulsory classes of insurance were announced in a statement issued by the commission’s Head of Corporate Affairs, Mr Rasaaq Salam, signed by the Acting Director, Authorisation and Policies, Mr Leonard Akah.

The statement said every operator should be guided by these rates in their various transactions. It said Insurance operators are directed to adhere and comply with existing approved premium rates for all compulsory classes of Insurance. “Every operator should guided by the rates in their various transactions. Going forward, the NAICOM will strictly monitor and enforce compliance,’’ it said. The statement said the discount rates cover compulsory classes of insurance like Statutory Life Insurance, Builders’ Liability Insurance, and Occupiers (Public Buildings) Liability Insurance. Others are: Healthcare Professional Indemnity and Motor Third Party Insurance,’’ the statement said.

It quoted the approved rates on Occupiers (Public Buildings) Liability Insurance from N1,500 to N15,000.00, depending on the space the insurance policy covers. “For example, the approved rate per room in a hotel is N1,500. The approved rates per floor in recreation centers or cinemas is N15, 000. The approved rate on a plot of land is N5,000 while that of the single occupier residential building is N5, 000.00, while the single occupier office building is also N10,000.00.

“On Healthcare Professional Indemnity insurance, the approved rate is based on the number of rooms. For structures with 20 rooms and below, the discount rate is N10,000,000.00, while those with 500 rooms and above are discounted for N100,000,000.00. For those with between 51 and 100 rooms, the discount rate charged should be N40,000,000.00,’’ the statement added. (NAN)