NAICOM Begins Nationwide Crackdown on Fake Third-Party Motor Insurance
By Patience Ikpeme
The National Insurance Commission (NAICOM) has launched a nationwide operation to combat the prevalence of fake third-party motor vehicle insurance documents, which it says are putting the public at risk.
The Head of Market Development at NAICOM, Adeyemi Abubakar, said the commission discovered that many third-party policies circulating are counterfeit, despite a recent directive by the Inspector General of Police for compliance with the insurance requirement.
Speaking to journalists during a raid around the Vehicle Inspection Office (VIO) Headquarters in Mabushi, Abuja, Abubakar said the commission has partnered with the police to arrest fake insurance operators.
“We’ve noticed that a lot of the third-party that are out there are still fake documents,” he said. “People are paying money for the insurance, but they are not having value for it. Imagine buying a third-party motor vehicle insurance at the VIO office, and when there are need for claims, you want to have claims, but meanwhile the documents you bought are not genuine.”
Abubakar said the raid is part of a broader effort to ensure the public gets value for their money and to “stamp out all the fake operators in Nigeria.” He said the exercise will not be limited to Abuja but will extend to other parts of the country.
He showed journalists some of the documents collected during the raid, which he said were simply printed at the gate of the VIO office. He explained that these policies have no records on any genuine insurance database, making them worthless in the event of an accident.
For the public to differentiate between fake and genuine policies, Abubakar advised they use the digital tools provided by the insurance industry. “There’s an app and there’s also a code that we can use to make sure of all this, you can verify the original and the fake policy that you are buying. So there’s already a digital approach to make sure this is being resolved,” he said. He advised the public to contact genuine insurance companies directly or their registered agents and brokers to purchase a valid policy.
Abubakar said the importance of a genuine policy goes beyond simply avoiding law enforcement. He described it as a tool to protect the vehicle owner and others. “It is not for us, it is something that is going to be of value for everybody,” he said.
He explained that a valid policy helps resolve disputes on the road in case of an accident. “If you scratch someone’s vehicle and the person came out and said, why did you do it, you just say, I’m sorry, all I needed is this is my insurance, let’s get in contact with them, and your vehicle will be taken care of.”
Abubakar had a message for the fake operators, urging them to get registered if they want to remain in the business. He said it is illegal to sell insurance without being licensed by NAICOM as an agent, broker, or insurance company.
“So for those that are doing these fake operations, we are advising them to get to registered. If you are not licensed by National Insurance Commission, you cannot sell insurance,” he said, adding that the commission provides opportunities for registration and legitimate business within the industry.
