The National Insurance Commission (NAICOM), in collaboration with the Nigeria Police Force, has launched a nationwide crackdown on individuals selling fake motor third-party insurance policies, a move hailed by motorists and licensed insurers as long overdue.
The exercise, spearheaded by NAICOM’s Motor Third-Party Insurance Enforcement Committee, began with a raid in Mabuchi, Abuja, where agents issuing counterfeit policies were apprehended. The operation followed a directive from the Inspector General of Police, ordering strict enforcement of third-party motor insurance compliance across the country.
Speaking during the raid, Mr. Adeyemi Abubakar, Head of Market Development at NAICOM, stressed that the action is part of a broader strategy to rid the market of fraudulent practices that deny Nigerians access to genuine insurance protection.
“Third-party motor insurance is not just a legal requirement—it’s a lifeline for accident victims. Fake policies strip citizens of compensation and undermine confidence in the insurance industry,” Abubakar explained. He urged motorists to always buy from licensed companies and verify their policies through NAICOM’s verification platforms.
Motorists Speak Out
Some motorists expressed relief at the enforcement, noting that the prevalence of fake insurance had left many vulnerable.
“I once bought a third-party policy from a roadside vendor, only to discover it was fake when I tried to make a claim after an accident,” said Mr. Ahmed Musa, a commercial driver in Abuja. “This crackdown is a welcome development because too many drivers are being cheated.”
Mrs. Grace Olanrewaju, a private car owner, added that the raid would restore confidence. “People need to feel secure that the money they spend on insurance is actually protecting them. These fake agents have been operating for too long.”
Stakeholders Back NAICOM’s Move
Mr Celestine Ukpong, an economist and investor, described the crackdown as a “bold step towards sanitizing the industry.”
“For years, fraudulent agents have eaten into the market share of genuine insurers while damaging public trust. This enforcement sends a clear message that the era of impunity is over,” he said.
Consumer advocacy groups have also thrown their weight behind NAICOM. The Nigerian Consumer Protection Network (NCPN) called for sustained monitoring, warning that fake policy syndicates often resurface after raids.
Next Steps
Those arrested during the operation will be prosecuted under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which prescribes stiff penalties, including fines and other sanctions.
NAICOM reiterated its commitment to continuous enforcement, stressing that its goal is not just to punish offenders but to protect Nigerians and strengthen the integrity of the insurance sector.
“This is only the beginning. Similar operations will be replicated across states until fake insurance policies are completely wiped out,” Abubakar assured.
Keys Takeaways:
How to Spot and Verify Genuine Motor Insurance in Nigeria
With the National Insurance Commission (NAICOM) and the Nigeria Police cracking down on fake motor insurance sellers, motorists are being urged to take proactive steps to protect themselves. Fake insurance not only wastes money but also denies accident victims the financial cover they deserve.
Here are essential tips for spotting and verifying genuine motor insurance:
Buy Only from Licensed Insurers: Always purchase your policy directly from NAICOM-accredited companies. Avoid roadside vendors and unauthorized agents.
Examine the Policy Document: Genuine certificates carry the insurer’s logo, registered address, and NAICOM license number. Poor print quality or missing details is a warning sign.
Use NAICOM’s Verification System (NVS): Check the validity of your policy online via www.naicom.gov.ng or through NAICOM’s approved verification platforms.
Request Digital Certificates: Many insurers now issue e-certificates that can be verified instantly against your vehicle registration and expiry date.
Contact the Insurer Directly: Always confirm through the company’s official customer care line if you have doubts.
Be Wary of “Too-Cheap” Policies: A price significantly below NAICOM’s regulated premium for third-party motor insurance is usually a red flag.
Check NAICOM’s Licensed Insurers List: NAICOM regularly publishes updated lists of accredited insurers. Cross-check before making any payment.
What to Do If You Suspect Your Policy Is Fake
Report immediately to NAICOM through its official website or customer service hotlines.
Contact the Nigeria Police to lodge a formal complaint, especially if you know the vendor who sold the policy.
Avoid renewing or making further payments to the same source.
Secure a genuine policy from a licensed insurance provider as soon as possible to stay compliant and protected.
Industry stakeholders warn that while enforcement is ongoing, vigilance remains the best safeguard. Motorists are advised to treat insurance purchases with the same seriousness as vehicle registration to avoid falling victim to fraudsters.
@2025 The Ameh News: All Rights Reserved
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