NAICOM threatens tough action against groups, warns against illegal third party motor insurance sales
National Insurance Commission
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The National Insurance Commission (NAICOM) says 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 the guise to defraud Nigerians by illegally selling/underwriting third party motor insurance.
It said in a report obtained by Dailyeconomy titled, ‘Beware of illegal third party motor insurance’ that it is an act that is illegal and criminal.
The insurance industry regulator said it has become imperative for it to alert Nigerians on the above illegal activities and clarify the position of the law guiding the mandatory Third Party Motor Insurance for all vehicles on Nigerian roads.
This is sequel to the ongoing enforcement exercise by the Nigeria Police Force and the Federal Road Safety Corps, since 1st February 2025, NAICOM noted.
It stated, “By the provisions of the NAICOM Act 1997 and the Insurance Act 2003, 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 Nigeriaincluding Third Party Motor Insurance.
“Unfortunately, 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.”
NAICOM stated that the above statement is illegal and misleading and should be disregarded.
It added, “The National Insurance Cooperative Society (NCIS) is not an insurance company licensed by the National Insurance Commission and therefore has no legal authority to sell to the public or underwrite the compulsory Third Party Motor Insurance.
“The National Insurance Commission (the apex insurance regulator in Nigeria) hereby reiterates that it is determined to flush out illegal and fake operators bent on defrauding, deceiving and misleading the public for selfish pecuniary interests.
“The National Cooperative Insurance Society will be prosecuted if it does not desist from this illegal action, which is against public policy and interest of the general public.”
The National Insurance Commission 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 as the Third Party Motor Insurance and the corresponding access to N3m Third Party Property Damage Limit, medical treatmentfor bodily injuries and compensation for deaths, which can only be provided by insurance companies licensed by the NationalInsurance Commission, it stated.
NAICOM stated, “The National Insurance Commission had previously circulated the list of insurance companies licensed and authorized by the Commission to sell or underwrite the mandatory third party motor insurance in Nigeria. The list can also be found on the Commission’s website www.naicom.gov.ng.
“In conclusion, the National Insurance Commission hereby reiterates that the National Cooperative Insurance Society is not a licensed insurance company. Any third party motor insurance policy issued by it or its affiliates are illegal. Nigerians should please take note.”
