NAICOM, Police Begin Nationwide Clampdown on Fake Insurance Dealers

The National Insurance Commission (NAICOM), in partnership with the Nigeria Police Force, has launched a major enforcement operation targeting individuals involved in the sale of fake third-party motor insurance policies.

In a statement issued on Wednesday, NAICOM revealed that its Third-Party Motor Insurance Enforcement Committee carried out a raid in the Mabuchi area of Abuja, focusing on fraudsters issuing counterfeit insurance documents to unsuspecting motorists.

This operation follows a recent directive by the Inspector-General of Police mandating strict nationwide enforcement of third-party motor insurance compliance. The move is part of a broader strategy to eliminate fake insurance practices and strengthen the credibility of the insurance industry.

Speaking during the exercise, NAICOM’s Head of Market Development, Mr. Adeyemi Abubakar, stressed that the crackdown is designed to safeguard consumers and ensure access to genuine insurance coverage. He explained that legitimate third-party motor insurance policies offer crucial compensation to accident victims, while fake policies leave policyholders unprotected and exposed to financial risks.

Mr. Abubakar further warned that selling insurance without proper licensing is a criminal offense, urging Nigerians to buy policies only from licensed insurance companies to avoid financial loss and claims denial.

Suspects arrested during the enforcement exercise will be prosecuted in accordance with the Nigerian Insurance Industry Reform Act (NIIRA) 2025. Convictions under the Act may attract fines of up to N200,000, imprisonment for up to one year, or both.

NAICOM reiterated its commitment to cleansing the insurance sector and advised citizens to verify their policy details through the Commission’s official verification platforms.