The National Insurance Commission (NAICOM) has once again raised an urgent alarm over the illegal activities of fraudulent third-party motor insurance operators, warning Nigerians to remain vigilant. This follows recent enforcement actions by the Nigeria Police Force and the Federal Road Safety Corps (FRSC), which began on February 1, 2025, to crack down on unlicensed insurance providers.
NAICOM’s warning comes in response to the deceptive practices of unauthorized entities, including cooperative insurance societies masquerading as legitimate insurance providers. The commission categorically declared that only licensed insurance companies under its regulatory oversight are authorized to sell and underwrite third-party motor insurance policies in Nigeria, in accordance with the NAICOM Act 1997 and the Insurance Act 2003.
A major flashpoint in this ongoing issue emerged on February 19, 2025, when the National Cooperative Insurance Society of Nigeria (NCIS) falsely claimed that its motor insurance services were legally valid and beyond government interference. NAICOM swiftly dismissed this claim as misleading and illegal, reaffirming that NCIS is not licensed to provide third-party motor insurance. The Commission warned that any such transactions conducted by NCIS or similar entities were fraudulent and would not be recognized under Nigerian law.
Looking back, this is not the first time NAICOM has had to tackle fraudulent operators in the insurance sector. In previous years, cases of fake insurance policies have left many unsuspecting Nigerians vulnerable, unable to claim compensation when accidents occur. NAICOM’s proactive stance aims to ensure that policyholders receive the full benefits of legitimate third-party insurance, including up to N3 million in third-party property damage coverage, medical treatment for bodily injuries, and compensation for fatalities—protections only available through NAICOM-licensed insurers.
Reflecting on these developments, NAICOM reiterates its unwavering commitment to safeguarding the public from exploitation. The Commission has made available a list of authorized insurance providers on its website, www.naicom.gov.ng, urging Nigerians to verify their insurance coverage to avoid falling victim to fraud.
As the crackdown on illegal insurance operators intensifies, NAICOM warns that any entity found engaging in unauthorized third-party motor insurance transactions will face prosecution. The message remains clear: Nigerians should only obtain third-party motor insurance from NAICOM-licensed providers to ensure genuine coverage and protection.
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