NAICOM Warns Public Against Fake Third-Party Insurance Racketeers

The National Insurance Commission (NAICOM) has issued a stern warning to the public to remain vigilant against fraudulent individuals posing as authorised third-party motor insurance operators. These rogue actors, who falsely claim to be licensed insurance companies or cooperative societies, have been duping unsuspecting motorists by offering fake insurance policies.

In a statement released, NAICOM stressed its concern over the rise of these illicit activities, where such groups are unlawfully selling third-party motor insurance. The commission clarified that only licensed insurance firms, which are authorised by NAICOM, are legally permitted to underwrite third-party motor insurance policies in Nigeria.

It was noted that while the National Cooperative Insurance Society (NCIS) had recently issued a statement claiming that its motor insurance transactions were valid under the legal framework, NAICOM swiftly debunked these claims. According to NAICOM, the NCIS is not a licensed insurance company and has no authority to sell or underwrite third-party motor insurance. The commission stressed that such statements were both illegal and misleading, and warned that NCIS would face legal action if it continued its unauthorised activities.

NAICOM emphasised that it remains fully committed to safeguarding the interests of the public and ensuring that individuals benefit from the protection offered by licensed insurance companies. This includes coverage for third-party motor insurance, which provides compensation for damage to property, medical treatment for bodily injuries, and compensation for fatalities. Only insurance companies registered with NAICOM can legally offer such benefits, with a limit of up to N3 million for third-party property damage.

To protect themselves from falling victim to these fraudulent schemes, NAICOM urged the public to consult its official website for a list of licensed insurance providers authorised to issue third-party motor insurance policies in Nigeria.

The commission reiterated its commitment to maintaining the integrity of the insurance industry and ensuring that policyholders receive the full benefits of their legitimate insurance coverage.

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