The National Insurance Commission in collaboration with the Nigeria Police Force has launched a crackdown on individuals peddling fake third-party motor insurance policies.
In a statement on Wednesday, the regulator said that its Third-Party Motor Insurance Enforcement Committee conducted a raid in the Mabuchi area of Abuja, targeting perpetrators who issue counterfeit policies to the public.
This enforcement action is a follow-up to 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, the Head of Market Development at the Commission, Mr. Adeyemi Abubakar, emphasised 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. Mr. Abubakar highlighted the importance of authentic insurance coverage, noting that it ensures financial protection and support in the event of accidents.
He also buttressed that selling insurance without a licence is illegal and warned consumers to purchase policies only from licensed insurance companies to avoid losing money and being stranded during claims settlement.
Individuals apprehended during the operation will face prosecution in line with Nigerian law. If convicted, they will be subject to penalties outlined in the Nigerian Insurance Industry Reform Act 2025, which may include fines and other regulatory actions. NIIRA 2025 prescribes a fine of N200,000 or imprisonment for a term of one year, or both.
NAICOM reiterated its commitment to sanitising the insurance market and called on Nigerians to always verify the authenticity of their insurance policies through the Commission’s approved verification platforms.
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