NAICOM launches crackdown on fake motor insurance

The National Insurance Commission (NAICOM) has stepped up its fight against the growing menace of fake third-party motor vehicle insurance certificates, warning motorists to beware of fraudulent operators who exploit regulatory loopholes.

The initiative, which began with a raid at the Vehicle Inspection Office (VIO) Headquarters in Mabushi, Abuja, saw NAICOM officials, supported by security agencies, confiscating dozens of counterfeit documents being sold to unsuspecting motorists.

Speaking to journalists during the operation, Adeyemi Abubakar, Head of Market Development at NAICOM, stressed that the clampdown followed a directive from the Inspector-General of Police mandating strict enforcement of genuine third-party insurance across Nigeria.

“There was a directive from the IG of Police that all third-party motor vehicles must be properly insured.

In carrying out this directive, we discovered that a large number of the third-party documents in circulation are fake,” Abubakar said.



The sale of counterfeit insurance policies has persisted for years, often fueled by unlicensed agents who position themselves around VIO offices, motor parks, and state licensing centres. Many motorists, eager to “get it over with,” unknowingly pay for fake policies that are not recognized by NAICOM or any licensed insurance company.

This illegal trade not only robs Nigerians of financial protection but also threatens lives on the roads. Abubakar explained:

“People’s lives are being put at risk. They believe they are insured, only to find out that their certificate is worthless when an accident happens.

Imagine being in a crash and discovering your so-called policy does not exist in NAICOM’s database.”



Abubakar confirmed that the sanitization exercise would not stop in Abuja.

NAICOM plans to extend raids to all 36 states and the FCT, targeting hotspots where fake policies are rampant.

Already, several forged certificates have been seized at the gates of VIO offices.

To empower motorists, NAICOM has rolled out digital verification solutions, including a mobile app and a USSD code, enabling instant checks of insurance validity.

Motorists can now confirm whether their certificate is genuine before leaving the point of purchase.

“The public is advised to buy insurance only from licensed companies and accredited agents.

If you buy from unauthorized persons, you are wasting your money and exposing yourself to huge risks,” Abubakar warned.



Third-party motor insurance is the most basic form of cover required by law in Nigeria. It protects motorists from liability in cases of accidents that cause damage or injury to other people.

Abubakar emphasized that genuine policies prevent unnecessary disputes on the road.

“If you scratch someone’s car or injure a pedestrian, your insurer steps in to pay compensation.

This reduces conflict and ensures accident victims are not left stranded.”



The Commission also sent a strong message to illegal operators selling fake policies.

Abubakar warned that only licensed insurance companies, brokers, and agents accredited by NAICOM are authorized to sell motor insurance.

“If you are not licensed, you cannot sell insurance in Nigeria.

These illegal activities will no longer be tolerated. Perpetrators risk arrest and prosecution,” he said.



He further explained that policies sold by unauthorized vendors do not exist in NAICOM’s database, making it impossible for accident victims to process claims.


Insurance penetration in Nigeria remains among the lowest in Africa, with less than 2% of the population actively insured.

Industry experts argue that fake policies contribute significantly to this low adoption rate, as many Nigerians lose confidence in insurance after bad experiences with counterfeit certificates.

NAICOM’s current crackdown is therefore not just a law enforcement exercise but also a trust-building initiative aimed at increasing insurance adoption.

The Commission says it will sustain nationwide raids, awareness campaigns, and digital solutions until counterfeit operators are eliminated.

“This is about protecting lives and ensuring Nigerians get real value for their money.

The era of buying ‘let me pass’ insurance is over. Motorists must insist on genuine policies that guarantee actual protection,” Abubakar concluded.



With NAICOM’s renewed push, industry stakeholders hope the insurance sector will gain credibility, improve claims settlement, and contribute more meaningfully to Nigeria’s economy.