By Nkechi Eze
The National Insurance Commission (NAICOM), in collaboration with the Nigeria Police Force, has launched a decisive crackdown on individuals involved in the sale of fake motor third-party insurance policies, beginning with an enforcement raid in the Mabuchi area of Abuja.
The operation, which was carried out by NAICOM’s Motor Third-Party Insurance Enforcement Committee, comes as part of ongoing efforts to eliminate fraudulent insurance practices and safeguard the public against exploitation. It also follows the directive of the Inspector General of Police mandating strict compliance with third-party motor vehicle insurance across the country.
Speaking during the enforcement exercise, Mr. Adeyemi Abubakar, Head of Market Development at NAICOM, underscored the significance of the operation, stressing that it was aimed at protecting unsuspecting Nigerians from the dangers of fake insurance. According to him, while genuine third-party motor insurance provides crucial compensation to accident victims, counterfeit policies leave motorists and citizens stranded without financial protection in times of need.
“Selling insurance without a license is illegal,” Mr. Abubakar warned, urging Nigerians to ensure they only purchase policies from licensed insurance companies. He explained that genuine coverage does not only guarantee peace of mind but also provides financial security and justice for accident victims. “Fake policies deny citizens their rightful benefits, and this is why NAICOM is determined to sanitize the market and protect policyholders,” he said.
The Commission confirmed that suspects arrested during the operation will be prosecuted in line with Nigerian law. If convicted, they will face penalties under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which prescribes fines and other regulatory sanctions for offenders.
NAICOM further advised the public to always verify the authenticity of their insurance policies through its approved verification platforms, assuring Nigerians of its commitment to cleansing the insurance space of fraudulent actors.
“This is not just an enforcement action; it is a call to Nigerians to embrace only genuine and verifiable insurance products,” Mr. Abubakar added.
