Law Firms Threatens To Sue Nigerian Government Agency Over 200% Increase In Vehicle Insurance Rates - langztrendlangztrend Law Firms Threatens To Sue Nigerian Government Agency Over 200% Increase In Vehicle Insurance Rates - langztrend
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Law Firms Threatens To Sue Nigerian Government Agency Over 200% Increase In Vehicle Insurance Rates
By on January 1st, 2023. News
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Law Firms Threatens To Sue Nigerian Government Agency Over 200% Increase In Vehicle Insurance Rates

The National Insurance Commission had raised the claims and cost of insurance on all classes of motor insurance, including motorcycles.

A law firm, the Chambers of Evans Ufeli has kicked against the new increment of N10, 000 for third-party vehicle insurance.

The cost of third-party motor insurance was recently increased from N5,000 to N15,000.

The National Insurance Commission had raised the claims and cost of insurance on all classes of motor insurance, including motorcycles.

According to NAICOM, third party premium insurance rate for motorists will now go for N15, 000 from N5,000.

The new development was stated in a circular dated December 22, 2022, signed by Director, Policy & Regulation, Leonard Akah with the number ‘NAICOM/DPR/CIR/46/2022’, and issued to all insurance companies.

The highest cost in the new rates is N100,000 for a commercial truck/general cartage.

Many Nigerians had expressed worry about the hike, describing it as a mere avenue for the government to get more money from car users to boost its revenue as it seeks funds to implement the 2023 budget.

Reacting, the law firm in a statement signed by Evans Ufeli said NAICOM was being unrealistic with the increment.

It urged the agency to immediately reverse the new policy within five days or face legal action.

The statement read, “We are Public Interest Solicitors and advocates for good governance. We stumbled on a circular from your commission dated the 22nd day of December 2022 and signed by the Director, Policy & Regulation, Mr. Leonard Akah with reference number NAICOM/DPR/CIR/46/2022, released to the public by your office, wherein the commission stated that the cost of insurance on all classes of motor insurance, including motorcycles, have been reviewed upwards.

“According to your commission , the third-party premium insurance rate for motorists will now be N15, 000 as against N5,000 it was before your new policy. Sequel to the above, you have also raised claims for motorists to N3m in the event of an accident and that for commercial truck/general cartage will now give the policyholders N5 m claims in the event of an accident.

“In view of the foregoing, the new policy by implication will mean that the industry operators have increased the cost of the policy under reference by 200 percent, following the addition of N10, 000 to the cheapest third party which currently stands at N5,000.

“Furthermore, according to the aforementioned circular, you alluded to the fact that you are 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.

“Be that as it may, we wish to respond as follows. That the law that established your commission did not empower you to be insensitive to the plight of the masses, to take such outrageous decisions in times of economic depression like we have today. It therefore not a well-thought-out policy as same is riddled with avarice and a gross display of ambivalence.

“That by the provisions of the 1999 constitution as amended(which is a superior legislation to the law establishing the commission)”, sovereignty belongs to the people” and their rights, not to be subjected to torture and undue socio-economic hardship is guaranteed and protected by the law under reference. Your policy, therefore, amounts to economic torture, targeted at putting Nigerians under dehumanizing conditions and the constitution forbids the same.

“That we reject the increments just made by the commission, and affirm that the NAICOM Act did not empower the commission to fix rates for insurance premium in isolation of the socio-economic condition of the Nigerian state. You must reappraise the law in your own interest, knowing that every policy must conform to socio-economic variables before same can pass the test of time.

“That, it is against public policy to ambush Nigerians with such policy at a time when the same government has grounded the nation’s economy and has failed to restart it for the benefit of the masses. That, on behalf of Nigerians, we call for a total reversal of the policy to the status quo and we hereby give you five (5) working days to do that, failing which, we shall have no other options than to proceed against you in the court of law for redress.

“Take notice that this letter is serve on you as a Pre-action Notice and same shall be enforced in due course.”

Source:- Sahara Reporters





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David Friday best known professionally as Donsmith makanaki , is a Nigerian Blogger , promoter Performing Artist, Music Publisher & Editor. An Award Winning Blogger , Donsmith makanaki is Associated with artist like Omah lay, Rema, DJ Kaywise , Ajebo Hustlers, Drake, Justin Bieber, Burna Boy,Davido,Wizkid,Buju,kizz Daniel,Dandizzy,Kolaboy. On 19th November 2019 Donsmith makanaki Unveiled “Langztrend NC” Donsmith makanaki An Entertainment Hub in Partnership with UMG, Donsmith makanaki is an Award winning Blogger with Hit tracks on different digital stores. Parents : Mr Ofonime and Mrs. Rose sunday Orgin: Akwa ibom State, Nigeria Subtitle: Nigeria Blogger Occupation(s): Blogger,Promoter,Computer Programming ,Digital marketing, and Web Designer Record Label: Langztrend INC, Universal Music Group Career: Donsmith makanaki Started djing at the age of 19 and his constancy in the profession made him improved to advanced level, He was Managed and Trained in blogging by various top Bloggers Donsmith makanaki have platform in many gigs Show, Tour and Clubs in various states across Nigeria ,Nominated in different awards and he’s the life of the party in turning up crowds Net worth: $30,000 as for 2021 Full name: David ofonime Friday Local Govt : Etim Ekpo L.G.A Akwa ibom Date of birth: 15 December 1997 Donsmith makanaki Donsmith makanaki Donsmith makanaki dropped a hit trap song Titled ‘Bless my hustle ’ ‘ Written by Donsmith makanaki in (2020),and later dropped his latest single titled ‘Fire Fire ’ with His Co Artist Mr Reese in 15 November (2020) Songs: Bless my hustle, Fire Fire , Lagos beat Awards And Nominations: NBF, ONC and BAC AWARD for Blogger of the Year

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