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By Henry Uche
The National Insurance Commission (NAICOM) has raised concerns over the activities of unauthorised third-party motor insurance operators, particularly cooperative insurance societies, who have been fraudulently selling and underwriting motor insurance policies. Describing the act as both illegal and criminal, the Commission warned Nigerians against falling victim to these unlicensed entities.
In a statement issued by its management, NAICOM emphasised that only insurance companies licensed by the Commission are legally permitted to provide third-party motor insurance, which is a mandatory requirement for all vehicles on Nigerian roads. The warning comes in the wake of an enforcement exercise jointly carried out by the Nigeria Police Force (NPF) and the Federal Road Safety Corps (FRSC), which began on February 1, 2025, to ensure compliance with valid motor insurance regulations.
The Commission particularly addressed a statement issued by the National Cooperative Insurance Society of Nigeria (NCIS) on February 19, 2025, in which the group falsely claimed 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.” Dismissing this claim as misleading and unlawful, NAICOM made it clear that NCIS is not a licensed insurance company and, as such, has no legal authority to sell or underwrite the mandatory third-party motor insurance in Nigeria.
“The above statement is illegal and misleading and should be disregarded. The National Cooperative Insurance 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 statement read.
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“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 the interest of the general public.”
NAICOM reaffirmed its commitment to ensuring that policyholders and legitimate beneficiaries of third-party motor insurance enjoy full protection under the law. It noted that only policies obtained from licensed insurance companies guarantee benefits such as the N3 million Third Party Property Damage Limit, medical treatment for bodily injuries, and compensation for deaths resulting from motor accidents.
“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 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.”
The Commission reminded the public that it had previously circulated the list of insurance companies legally authorised to issue third-party motor insurance in Nigeria. The official list remains available on NAICOM’s website for verification.
Reiterating its stance, NAICOM emphasised that the National Cooperative Insurance Society is not a licensed insurance provider and that any third-party motor insurance policy issued by it or its affiliates is illegal. It urged Nigerians to remain vigilant and avoid patronizing unlicensed operators, warning that the Commission will take necessary legal actions to protect the integrity of the insurance industry.
