The National Insurance Commission (NAICOM) has expressed its concerns over the activities of fake third-party motor insurance operators, particularly cooperative insurance societies, who have been fraudulently selling and underwriting motor insurance policies, threatening to clampdown on the criminals in order to sanitize the insurance market in the country.
The Commission, in a statement issued by it on the abuses in the insurance sector, warned Nigerians against falling victim to the illegal operators but to ensure that only insurance companies licensed by the it and legally permitted to provide third-party motor insurance are patronized for their insurance policy cover.
The latest warning of the NAICOM is coming on the heels of an enforcement exercise jointly carried out by the Nigeria Police Force (NPF) and the Federal Road Safety Corps (FRSC), which began on February 1, 2025, to ensure compliance with valid motor insurance regulations.
The Commission particularly cited a statement issued by the National Cooperative Insurance Society of Nigeria (NCIS) on February 19, in which the group falsely claimed that “the validity of motor vehicle insurance transactions (provided by the NCIS) is derived from the relevant legal framework and is not subject to government intervention beyond what is stipulated by law” to make its position known on the issues.
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Dismissing the NCIS claim as misleading and unlawful, NAICOM clearly stated that NCIS was not a licensed insurance company and, as such, had no legal authority to sell or underwrite the mandatory third-party motor insurance in Nigeria.
The NAICOM further clarified: “The above statement is illegal and misleading and should be disregarded. The National Cooperative Insurance Society (NCIS) is not an insurance company licensed by the National Insurance Commission and therefore has no legal authority to sell to the public or underwrite the compulsory Third-Party Motor Insurance.
“The National Insurance Commission (the apex insurance regulator in Nigeria) hereby reiterates that it is determined to flush out illegal and fake operators bent on defrauding, deceiving, and misleading the public for selfish pecuniary interests. The National Cooperative Insurance Society will be prosecuted if it does not desist from this illegal action, which is against public policy and the interest of the general public.
“The National Insurance Commission hereby assures Nigerians that it remains committed to ensuring policyholders and legitimate beneficiaries of insurance policies obtained from licensed insurance companies enjoy the maximum benefits of insurance such as the Third-Party Motor Insurance and the corresponding access to N3m Third Party Property Damage Limit, medical treatment for bodily injuries and compensation for deaths, which can only be provided by insurance companies licensed by the National Insurance Commission”, it added.
The Commission recalled that it had previously circulated the list of insurance companies legally authorised to issue third-party motor insurance in Nigeria, adding that the official list remains available on its website for verification.
The NAICOM maintained that the NCIS remained not a licensed insurance provider and that any third-party motor insurance policy issued by it or its affiliates is illegal, urging motorists to remain vigilant and avoid patronizing unlicensed operators and that it will take necessary legal actions to protect the integrity of the insurance industry.
