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For N15,000, Nigerians To Get N3m Motor Insurance Claims From 2023

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By Sola Alabadan

Based on the new rates approved by the National Insurance Commission (NAICOM), policyholders of Motor third-party insurance who paid N15,000 premium, will be eligible to collect N3 million claims in the event of an accident, from January 2023.

The new benefit to motor policyholders which was contained in a circular dated December 22, 2022, from the National Insurance Commission (NAICOM), also raised the cheapest and the most popular class of insurance in the country from N5,000 to N15,000, indicating a 200 per cent increase.

For buyers of comprehensive motor insurance, they shall not pay less than five per cent of the sum insured or the price of the vehicle after all rebates and discounts.

In the circular signed by its Director, Policy, and regulation, Leo Akah to all insurance institutions entitled, “New Premium Rates For Motor”, the sector regulator raises the claims and cost of insurance on all classes of motor insurance including motorcycles.

The highest cost in the new rates is N100,000 for a commercial truck/general cartage which also fetches the policyholders N5 million claims in the event of an accident.

The implication of this to the industry is an improved premium income in the class of business from the Year 2023. Until recently, the motor insurance class has been the major earner of income for some insurance underwriters and this new development will swell their income.

The industry earned a total of N77.7 billion from motor insurance in a period of six months covering April to September 2022. The class of business fetched the industry N32.4 billion between April and June and also, N45.3 billion between July and September.

Consequently, premium income from motor insurance is expected to improve the earnings of the industry operators by 200 percent following the addition of N10,000 to the cheapest third party which currently stands at N5,000.

The commission according to the circular stated that it was empowered to approve the new rates for motor insurance premiums by Section 7 of the NAICOM Act 1997 and other extant laws, noting that the new motor insurance premium rates become effective from January 1, 2023.

It warns that failure to comply with the circular shall attract appropriate regulatory sanction.

NAICOM in the new rates which states that third-party insurance policies are inclusive of the Ecowas Brown Card also approved an N20,000 premium for Own goods motor insurance while the policyholders will collect N5 million claims in the event of an accident. The new development fixed the premium rate on a staff bus at N20,000 while the insured can collect N3 million claims in the case of an accident.

For commercial vehicles, trucks/general cartage has a claims limit of N5 million while the new premium is N100,000; special types of insurance have a claims limit of N3 million while the new premium is N20,000, and owners of tricycles will pay N5,000 for insurance of each to enjoy N2 million claims. For motorcycle insurance, the new premium is N3,000 while the claims limit is now N1 million.

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13-year-old Wins Heirs Insurance Essay Championship, Gets N5m

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Heirs Insurance Group has announced the winners of the 4th edition of the Heirs Insurance Essay Championship, a nationwide competition promoting financial literacy and academic excellence among secondary school students and educators.
The grand finale, held in Abuja recently, brought together students, parents, and academic leaders for a celebration of knowledge and creativity. This year’s edition, which attracted over 5,000 entries from junior secondary school students nationwide, was anchored on the topic “The Role of Insurance in Keeping Families Safe and Secure”.
After a rigorous evaluation process by a panel of academic professionals, independently verified by Deloitte & Touche, 13-year-old Rhema-Love Abraham of Precepts Learning Field, Lagos, emerged as the overall winner, earning a N5 million scholarship and a N1 million grant for her school.
Bernice Michael of S-TEE High School, Lagos, claimed the second-place position, winning a N2 million scholarship, while Afopefoluwa Tofio-Jacobs of D-IVY College, Ogun State, took third place, receiving a N1 million scholarship.
This year, Heirs Insurance introduced the inaugural Teachers Prize, to honour teachers promoting insurance awareness within their schools and communities. This initiative was created to democratise access to insurance literacy, working collaboratively with teachers and educators.
Mr. Okpe James Chidi, a teacher at Urban Secondary School, Umuna Orlu, Imo State, emerged as the winner of the Teachers’ Insurance Awareness Prize, with a personal award of N1 million cash prize, and a N500,000 grant for his school. His project, which deepened students’ understanding of financial literacy and insurance, was praised for its innovation, reach, and measurable impact.
Speaking at the ceremony, Niyi Onifade, Sector Head, Heirs Insurance Group, commended all the participants for their creativity and drive, emphasising the Group’s commitment to nurturing future leaders through education.
He said, “We are proud of every student and teacher who participated in this year’s Essay Championship. Their creativity, curiosity, and dedication reflect the future we envision for our nation; one built on knowledge, innovation, and resilience. At Heirs Insurance Group, we believe financial literacy is a powerful tool for empowerment and transformation”.
The Heirs Insurance Essay Championship is a flagship Corporate Social Responsibility (CSR) initiative of Heirs Insurance Group, created to build awareness of insurance literacy and critical thinking among young Nigerians. The introduction of the Teachers’ Insurance Awareness Prize further demonstrates the Group’s commitment to advancing insurance education and promoting financial inclusion at every level of society.

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Leadway Assurance Wins Two At BAFI Awards

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Leadway Assurance won two awards at the 2025 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, as the Insurance Company of the Year and Excellence in Claims Leadership & Digital Innovation. This is the second consecutive year the company would be emerging as the insurance company of the year.
These recognitions reaffirm Leadway Assurance’s position as a trusted insurer, underpinned by 55 years of legacy of integrity, innovation, and customer focus.
In 2024 alone, the company paid out N117 billion in claims. Each payout reflects restored livelihoods and renewed confidence for families and businesses across the country.
Commenting on the milestone, Gboyega Lesi, Managing Director of Leadway Assurance, said: “These double honours are a worthy recognition of the dedication of our team and our commitment to serving customers better every day. The recognition motivates us to continue building systems and teams that ensure no one faces uncertainty alone. Each innovation and every claim fulfilled reaffirms our promise to provide protection. For Leadway Assurance, these accolades celebrate our sense of purpose, reliability, and the lasting strength of an indigenous brand built to endure.
“Winning the Insurance Company of the Year for the second consecutive year and adding Excellence in Claims Leadership and Digital Innovation awards reflects our consistent devotion to excellence, consistency, and innovation in delivering value. We thank the leadership of BusinessDay for celebrating our relentless pursuit of efficiency, transparency, and empathy in every customer interaction; from simplifying claims processes to leveraging technology for faster, smarter access to insurance policies, as we continue to redefine trust and innovation in the insurance industry.”
Leadway Assurance’s transformation of claims management has set a new benchmark in the insurance industry. Leveraging cutting-edge technology, the company has digitised its claims processes, enabling customers to file, track, and finalise claims seamlessly. This digital shift has significantly reduced turnaround times and elevated customer experience nationwide.

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NAICOM Charges Insurers To Develop Parametric, Microinsurance Products For Climate

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By Sola Alabadan

The Commissioner for Insurance and Chief Executive of National Insurance Commission (NAICOM), Mr Olusegun Omosehin has advised West African insurers to develop parametric and microinsurance products tailored to the region’s climate realities.
Giving this charge at the 2025 WAICA Conference in Lagos, Omosehin also urged insurers to invest in data and technology to improve climate modelling, risk assessment, and product delivery.
The theme of this year’s conference, was “The West African Insurer in the Face of Climate Change”.
He added the the insurance operators have to expand inclusion, and ensure that insurance reaches farmers, market women, artisans, and micro-entrepreneurs, which is the backbone of our economies.
He stressed that insurers must prioritise capacity building, investing in the next generation of insurance professionals, as well as make sure that insurance evolve from a transactional service to a strategic enabler of development.
He also pointed out that “Climate change is rewriting the narrative of our region. It is testing the strength of our economies, the endurance of our communities, and the responsiveness of our institutions. It has become a macroeconomic threat, influencing fiscal policy, national budgets, and the stability of our financial systems.
“The evidence is sobering. In 2024, flooding affected over 7.5 million people across 16 West African countries. Nigeria alone accounted for 1.3 million displaced persons. In 2025, over 33,000 Nigerians were displaced, 3,800 homes destroyed, and 5,300 hectares of farmland submerged—threatening food security and economic stability.
These are not just statistics—they are stories of disruption, loss, and delayed development. Yet, within this crisis lies an opportunity: to redefine the role of insurance as a force for resilience and sustainable development”.
Like many African nations, he stated that Nigeria faces a significant climate finance gap, noting that “Traditional budgetary responses are no longer sufficient. We must strengthen financial instruments that allow us to anticipate shocks rather than merely react to them.
When integrated into national planning, insurance becomes one of the most effective tools for climate risk management and economic resilience”.
He further assured that NAICOM is committed to enabling policies that foster collaboration between operators, regulators, and development partners, adding that strengthening climate resilience across West Africa demands a unified approach—one that blends sound regulation, market innovation, and strategic partnerships.

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