By Henry Uche
The Nigerian Insurance Association (NIA) has proposed engaging all 36 Commissioners of Police, including those in the Federal Capital Territory (FCT), to strengthen collaboration on the enforcement of third-party motor insurance.
The engagement, which would include the Federal Road Safety Commission (FRSC), involves organizing workshops and training for Divisional Traffic Officers to improve their knowledge of the insurance business, particularly third-party motor insurance.
Already, the NIA team, led by its Director General, Mrs. Bola Odukale, had visited the Lagos State Commissioner of Police, CP Olorundare Jimoh, as compliance and enforcement of the policy, which began on February 1, 2025, continue.
Earlier in that visit, CP Jimoh highlighted the role insurance plays and assured the NIA that the police would continue to enforce the policy as directed by the Inspector General of Police, Mr. Kayode Egbetokun.
The Commissioner, who highlighted the need for insurance education, particularly in tackling fake insurance certificates, noted that the IGP took the enforcement of the policy seriously and had mandated police commands in all states across the country to send reports of developments on the enforcement to the central office on a daily basis.
Chairman of NIA, Mr. Kunle Ahmed, while briefing insurance and pension journalists in Lagos on NIA’s 2025 first-quarter performance, expressed optimism over the impressive performances of the industry players and reiterated his commitment to his four-point agenda, which includes: Advocacy and Inter-governmental relationships, Digital Innovation, Claims and Technical Excellence, as well as Human Capacity Development.
“Our eyes are still fixed on the goals. And I can assure you that we are not leaving any stone unturned in ensuring we meet the agenda we set. Already, we are making progress,” he affirmed.
On the publication made by the regulator—the National Insurance Commission (NAICOM)—on its website regarding insurance companies that failed to pay ‘supposedly genuine claims,’ following numerous complaints brought to NAICOM’s table by thousands of policyholders, the NIA Chief said that although the action taken by NAICOM was acceptable to the Association, some operators had protested. They argued that some of the claims put forward by policyholders of different insurance companies are either outdated, settled, still in court, or in progress.
“By publishing the names of insurance companies with outstanding claims and the details of these complaints, NAICOM is promoting transparency and demonstrating a commitment to protecting the interests of policyholders. It sends a strong message to insurers that the regulator is taking the issue of unpaid claims seriously and is willing to take concrete action to ensure that policyholders receive their due compensation as and when due.
“While most companies will meet their claims obligations, it is believed that the threat of being publicly named and shamed, coupled with potential sanctions for non-compliance, is a strong incentive for insurance companies to prioritize the settlement of outstanding claims and improve their claims-handling processes. So, yes, it’s acceptable, but some are still a work in progress, some are still in court, while others have already been settled.
NAICOM has explicitly stated its zero tolerance for delays in settling genuine claims and has warned that non-payment could even lead to the cancellation of licenses.
“We should also not lose sight of the fact that by making this information public and launching the NAICOM Complaint Management Portal, the regulator is empowering policyholders to be more informed and to utilize the official channels for resolving their grievances. This can help policyholders who may have felt helpless in the face of delayed or denied claims.”
He emphasized that some insurers have reacted to the publications with concern, citing inaccuracies in the lists and a lack of active engagement prior to the publication. They argue that some listed claims have already been paid, are subject to ongoing disputes, or are even fraudulent. The insurance companies are therefore strongly advised to engage the regulator by providing updates on each complaint listed against them, which will enable NAICOM to update the list accordingly.
On the 2024 Nigeria Insurance Industry Reform Bill, he maintained that the industry would see a quantum leap when assented to by President Tinubu, as the piece of legislation contains huge transformational provisions to catalyze the system for optimum performance and global competition.
“The bill has a lot to change in the system to enable us to stand firm in the global insurance market. We are confident the president will sign it,” he assured.