Members of the public have been advised to be cautious of fake insurance racketeers who go about accosting the unsuspecting public with fake third party motor insurance policies as a licensed operators or cooperative insurance societies.
The National Insurance Commission, NAICOM, gave the advice in a statement.
It noted that its attention has been drawn to the activities of some illegal third party motor insurance operators or cooperative insurance societies, who have been masquerading under that guise to defraud Nigerians by illegally selling/underwriting third party motor insurance.
While describing the act as illegal and criminal, the commission observed that only the National Insurance Commission is empowered by law to license insurance companies to transact different classes of insurance offered to members of the public in Nigeria including the Third Party Motor Insurance, by the provisions of the NAICOM Act 1997 and the Insurance Act 2003.
It observed that on 19th February 2025, the National Cooperative Insurance Society of Nigeria, NCIS, announced 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.”
However, NAICOM debunked the claims by NCIS noting that the statement by it is illegal and misleading and should be disregarded.
While noting that the National Insurance Cooperative Society, NCIS, is not an insurance company licensed by NAICOM, it pointed out that it has no legal authority to sell to the public or underwrite Third Party Motor Insurance.
The commission warned that the NCIS will be prosecuted if it does not desist from the action, which it noted is against public policy and interest.
NAICOM assured 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 benefits according to the commission include the Third Party Motor Insurance and the corresponding access to N3million Third Party Property Damage Limit, medical treatment for bodily injuries and compensation for deaths, which can only be provided by insurance companies licensed by it.
The National Insurance Commission urged the insuring public to visit its website for the list of insurance companies licensed and authorized by it to sell or underwrite the mandatory third party motor insurance in Nigeria.
