By Henry Uche
The Nationwide Insurance coverage Fee (NAICOM) has raised considerations over the actions of unauthorised third-party motor insurance coverage operators, significantly cooperative insurance coverage societies, who’ve been fraudulently promoting and underwriting motor insurance coverage insurance policies. Describing the act as each unlawful and felony, the Fee warned Nigerians in opposition to falling sufferer to those unlicensed entities.
In an announcement issued by its administration, NAICOM emphasised that solely insurance coverage corporations licensed by the Fee are legally permitted to offer third-party motor insurance coverage, which is a compulsory requirement for all automobiles on Nigerian roads. The warning comes within the wake of an enforcement train collectively carried out by the Nigeria Police Power (NPF) and the Federal Highway Security Corps (FRSC), which started on February 1, 2025, to make sure compliance with legitimate motor insurance coverage laws.
The Fee significantly addressed an announcement issued by the Nationwide Cooperative Insurance coverage Society of Nigeria (NCIS) on February 19, 2025, wherein the group falsely claimed that:
“The validity of motorcar insurance coverage transactions (supplied by the NCIS) is derived from the related authorized framework and isn’t topic to authorities intervention past what’s stipulated by legislation.” Dismissing this declare as deceptive and illegal, NAICOM made it clear that NCIS just isn’t a licensed insurance coverage firm and, as such, has no authorized authority to promote or underwrite the obligatory third-party motor insurance coverage in Nigeria.
“The above assertion is against the law and deceptive and needs to be disregarded. The Nationwide Cooperative Insurance coverage Society (NCIS) just isn’t an insurance coverage firm licensed by the Nationwide Insurance coverage Fee and subsequently has no authorized authority to promote to the general public or underwrite the obligatory Third-Social gathering Motor Insurance coverage,” the assertion learn.
“The Nationwide Insurance coverage Fee (the apex insurance coverage regulator in Nigeria) hereby reiterates that it’s decided to flush out unlawful and faux operators bent on defrauding, deceiving, and deceptive the general public for egocentric pecuniary pursuits. The Nationwide Cooperative Insurance coverage Society will probably be prosecuted if it doesn’t desist from this unlawful motion, which is in opposition to public coverage and the curiosity of most of the people.”
NAICOM reaffirmed its dedication to making sure that policyholders and bonafide beneficiaries of third-party motor insurance coverage get pleasure from full safety underneath the legislation. It famous that solely insurance policies obtained from licensed insurance coverage corporations assure advantages such because the N3 million Third Social gathering Property Harm Restrict, medical therapy for bodily accidents, and compensation for deaths ensuing from motor accidents.
“The Nationwide Insurance coverage Fee hereby assures Nigerians that it stays dedicated to making sure policyholders and bonafide beneficiaries of insurance coverage insurance policies obtained from licensed insurance coverage corporations benefit from the most advantages of insurance coverage such because the Third-Social gathering Motor Insurance coverage and the corresponding entry to N3m Third Social gathering Property Harm Restrict, medical therapy for bodily accidents and compensation for deaths, which might solely be supplied by insurance coverage corporations licensed by the Nationwide Insurance coverage Fee.”
The Fee reminded the general public that it had beforehand circulated the record of insurance coverage corporations legally authorised to problem third-party motor insurance coverage in Nigeria. The official record stays out there on NAICOM’s web site for verification.
Reiterating its stance, NAICOM emphasised that the Nationwide Cooperative Insurance coverage Society just isn’t a licensed insurance coverage supplier and that any third-party motor insurance coverage coverage issued by it or its associates is against the law. It urged Nigerians to stay vigilant and keep away from patronizing unlicensed operators, warning that the Fee will take essential authorized actions to guard the integrity of the insurance coverage trade.
