The National Insurance Commission (NAICOM) has arrested several individuals in the Federal Capital Territory for allegedly issuing fake vehicle insurance covers. The operation took place in Jabi, where agents were reportedly selling fraudulent third-party motor insurance documents to unsuspecting motorists. Dr. Talmiz Usman, Director of Legal, Enforcement and Market Development at NAICOM, confirmed the arrests and described the crackdown as part of the commission's broader push to eliminate fraud in the insurance sector.
Dr. Usman explained that third-party motor insurance is designed to protect innocent victims of road accidents who are not party to the insurance contract. He emphasized that driving without valid insurance exposes others to financial and physical risk, as fake policies offer no real coverage. Those caught selling the counterfeit documents often mislead buyers into believing the papers will satisfy law enforcement during routine checks. In reality, such policies are worthless when claims arise, leaving victims uncompensated.
He reiterated that under the Nigerian Insurance Industry Reform Act, signed into law last year, cooperatives and Vehicle Inspection Officers (VIOs) are prohibited from selling third-party motor insurance. The new legislation also grants NAICOM direct authority to prosecute offenders without referring cases to the Office of the Attorney General. Previously, the commission could only investigate and recommend prosecution. Now, it can initiate legal proceedings independently. Dr. Usman stated that all those arrested would face prosecution under the law, which classifies the sale of fake insurance as a criminal offence.
NAICOM enforces a law that bans cooperatives and VIOs from selling insurance, yet many Nigerians continue to buy fake covers from these very groups. This suggests the commission's enforcement has been inconsistent prior to now. If fake policies were widespread enough to warrant a crackdown, then many drivers were left unprotected despite believing they were compliant. The new prosecution powers may change behaviour, but only if applied consistently across the sector.
⚖️ NaijaBuzz Take is AI-assisted editorial opinion. All persons mentioned are presumed innocent until proven guilty. Full disclaimer →
