NAICOM, Nigeria Police begins crackdown on Suspects over Sale of Fake Insurance Policies
The National Insurance Commission (NAICOM) has launched a crackdown on individuals selling fake motor third-party insurance policies in collaboration with the Nigeria Police Force. Led by its Motor Third-Party Insurance Enforcement Committee, NAICOM 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 on 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, Mr. Adeyemi Abubakar, Head of Market Development at the Commission, emphasized 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 buttresses that selling insurance without a license is illegal and warns 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 (NIIRA) 2025, which may include fines and other regulatory actions.
NAICOM reiterated its commitment to sanitizing the insurance market and called on Nigerians to always verify the authenticity of their insurance policies through the Commission’s approved verification platforms.
