NAICOM tackles illegal third-party insurance operators

The National Insurance Commission looks to take action against illegal third-party motor insurance policy operators.

This was disclosed in a public notice made available to The PUNCH on Tuesday.

On February 1, the police commenced nationwide enforcement of third-party motor insurance to boost safety on the roads.

According to the statement, NAICOM said it had become aware of the activities of some illegal third-party motor insurance operators or cooperative insurance societies, who have been masquerading under that guise to defraud Nigerians by illegally selling/underwriting third-party motor insurance.

The statement read, “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 Insurance Commission hereby assures 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 the N3m Third Party Property Damage Limit, medical treatment for bodily injuries, and compensation for deaths, which can only be provided by insurance companies licensed by the National Insurance Commission.”

NAICOM reiterated that 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 Nigeria, including Third Party Motor Insurance.

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