Section 51: Restriction on general increase in premium charged on motor insurance, etc.

(1) No insurer shall either by itself or as a member of an association of insurer make a general increase in the minimum rates of premiums charged or to be charged with respect to any class of insurance business made compulsory by law except with a prior approval of the Commission.
(2) An insurer who makes a general increase otherwise than in compliance with subsection (1) of this section commits an offence and is liable on conviction to a fine of 10 times the amount of premium charged and received by the insurer or N100,000 whichever is greater.
(3) An insurer who increases rates of premium charged or to be charged with respect to any class of insurance business made compulsory by law otherwise than in compliance with subsection (1) of this section commits an offence and is liable on conviction to either of the additional penalties-
(a) suspension of its operations in respect of a new insurance business for a period of not less than 6 months or more than 3 years; or
(b) cancellation of its certificate of registration, and in addition to either of the foregoing, the insurer shall refund the excess payment to every person making such excess payment or to other person entitled thereto.
(4) The penalties referred to in subsection (3) of this section shall be imposed by the Commission and an insurer who feel aggrieved may appeal to the Minister of Finance in accordance with the provisions of sections 7 of this Act.
(5) The provisions of this section shall not apply to non-tariff insurance business where premiums are charged according to the risk covered by the insurance policy.