The National Insurance Commission (NAICOM) has warned Nigerians about the National Cooperative Insurance Society (NCIS), describing it as an illegal third-party motor insurance operator, fraudulently selling unauthorised policies.
In a statement issued by its management on Tuesday, NAICOM described these activities as “illegal and criminal,” cautioning the public against dealing with such entities.
“The National Insurance Cooperative 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.
The commission issued this alert following the ongoing enforcement exercise by the Nigeria Police Force and the Federal Road Safety Corps (FRSC), which began on February 1, 2025. It clarified that by law, only NAICOM-licensed companies can transact insurance business, including the mandatory Third-Party Motor Insurance required for all vehicles on Nigerian roads.
NAICOM also refuted a statement by NCIS on February 19, 2025, claiming that its vehicle insurance transactions were legally valid and not subject to regulatory intervention.
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“The above statement is illegal and misleading and should be disregarded. NAICOM is determined to flush out illegal and fake operators bent on defrauding, deceiving, and misleading the public for selfish pecuniary interests.” NAICOM stated.
The commission further warned that the National Cooperative Insurance Society would face prosecution if it did not halt its unauthorised activities that violate public policy and the interest of Nigerians.
Reassuring legitimate policyholders, NAICOM emphasized its commitment to ensuring that insurance obtained from licensed companies provides maximum benefits, including access to N3m Third Party Property Damage Limit, medical treatment for bodily injuries, and compensation for deaths.
To help Nigerians verify authorized insurers, NAICOM noted that it had previously circulated a list of licensed companies, which remains available on its website, www.naicom.gov.ng.
The National Insurance Commission reaffirmed its commitment to protecting Nigerians from fraudulent insurance operators by enforcing regulations that ensure only licensed companies provide motor insurance.
It emphasised its role in safeguarding policyholders’ rights and ensuring they receive the full benefits of legitimate insurance policies. The commission urged motorists to remain vigilant, verify their insurers, and obtain coverage only from licensed providers to secure their financial interests and comply with the law.
