The National Insurance Commission (NAICOM), in collaboration with the Nigeria Police Force, has begun a clampdown on individuals selling fake third-party motor insurance policies.
In a statement issued on Wednesday, the Commission said its Third-Party Motor Insurance Enforcement Committee carried out a raid in the Mabuchi area of Abuja, targeting people issuing counterfeit policies to unsuspecting motorists.
The enforcement follows a directive by the Inspector-General of Police mandating strict compliance with third-party motor vehicle insurance nationwide. It forms part of efforts to stamp out fraudulent insurance practices and ensure that motorists are adequately covered.
During the exercise, NAICOM’s Head of Market Development stressed that the operation was designed to protect policyholders and the public from fake documents that leave them unprotected in the event of accidents. Genuine third-party policies, he explained, guarantee compensation for victims, while counterfeit policies deny citizens access to such benefits.
The Commission warned that selling insurance without a licence is a criminal act and urged Nigerians to purchase only from licensed insurers. Consumers were also advised to verify the authenticity of their policies using NAICOM’s approved verification platforms.
Those arrested during the raid will face prosecution under the Nigerian Insurance Industry Reform Act 2025, which prescribes fines of up to N200,000 or imprisonment for one year, or both, for offenders.
NAICOM reiterated its commitment to sanitising the insurance market and assured Nigerians of its determination to strengthen public trust in the industry.
