‘Genuine Motor Policy Provides Financial Protection That Fake Cover Lacks’

The National Insurance Commission (NAICOM) has said that genuine motor insurance policies provide financial protection and support for policyholders, which fake policies cannot offer.

The head of Market Development in the commission, Adeyemi Abubakar, stated this during the weekend, when the Motor Third-Party Insurance Enforcement Committee raided in the Mabuchi area of Abuja, targeting perpetrators who issue counterfeit policies to the public.

Emphasising 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. In contrast, fake policies deny citizens this essential benefit.

He highlighted the importance of authentic insurance coverage, noting that it ensures financial protection and support in the event of accidents.

He added that selling insurance without a licence was illegal and warned consumers to purchase policies only from licensed insurance companies to avoid losing money and being stranded during claims settlement.

This crackdown, according to NAICOM, 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.

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 sanitising the insurance market and called on Nigerians to always verify the authenticity of their insurance policies through the Commission’s approved verification platforms.