The free rolling days of selling third-party motor insurance policies by fake insurance vendors that holds no obligation to settle claims on accidented vehicles and victims is grinding to a halt at least in Abuja, other cities will follow,
The end game for individuals involved in fake motor insurance began with a crackdown by the National Insurance Commission (NAICOM) in collaboration with the Nigeria Police Force. Led by its Motor Third-Party Insurance Enforcement Committee, NAICOM. The Commission reiterated that this is its commitment to sanitizing the insurance market and called on Nigerians to always verify the authenticity of their insurance policies through the Commission’s approved verification platforms.
The new wave of raid was conducted in the Mabuchi area of Abuja, targeting perpetrators who issue counterfeit policies to the public. This enforcement action is a follow-up on the directive by the Inspector General of Police on strict compliance with third-party motor vehicle insurance across the country. The action forms part of its strategic initiative to eradicate the proliferation of fake insurance documents.
During the exercise, Mr. Adeyemi Abubakar, Head of Market Development at the Commission, emphasized that the crackdown aimed to protect policyholders and the public from fraudulent insurance practices. He explained that genuine third-party motor insurance policies provide critical compensation for accident victims, while fake policies deny citizens this essential benefit.
He cleared that selling insurance without a license is illegal and warns consumers to purchase policies only from licensed insurance companies to avoid losing money and being stranded during claims settlement.
Individuals apprehended during the operation would face prosecution and If convicted would be subject to penalties outlined in the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which may include fines and other regulatory actions.
