NAICOM arrests alleged fake insurance agents in FCT

The National Insurance Commission (NAICOM) has arrested some insurance agents for allegedly issuing fake vehicle insurance cover in the federal capital territory as part of its efforts to promote transparency and efficiency of the sector. The raid and subsequent arrest was conducted in the Jabi district of the FCT Speaking to journalists after the arrest, […]

The National Insurance Commission (NAICOM) has arrested some insurance agents for allegedly issuing fake vehicle insurance cover in the federal capital territory as part of its efforts to promote transparency and efficiency of the sector.

The raid and subsequent arrest was conducted in the Jabi district of the FCT

Speaking to journalists after the arrest, Director, Legal, enforcement and market development, Dr. Talmiz Usman said the exercise was borne out of the resolve of the Commission to wipe out fake insurance and fake operators. 

“We know the objective, the intent of the third party motor insurance. The whole objective is to protect innocent third parties who are not party to the insurance contract. So the role, the intention of the government is that, the government will not say you shouldn’t drive a car. But we know there is a risk when you drive a car, you can damage somebody’s property, you can cause bodily injury, you can cause death.

“Out of that, the law says yes, you can go ahead and drive your car. But for you to drive, you must have insurance that protects that innocent third party. And that’s the objective. Now we have a situation where people are selling fake insurance all over the country. What they think about is that, I have insurance, I will just show it to law enforcement agencies and pass when I’m driving which defeats the objective of the insurance.

“Consequently, when there is a claim, there is nobody to pay. Because one, you get insurance from a non-insurance company. Two, you are getting a fake cover that is nothing more than a worthless paper,” he explained.

He added that by law, no cooperative is allowed to sell third party motor insurance, noting that, “it’s illegal and it’s against the Nigerian Insurance Industry Reform Act, which Mr. President generously signed last year. And also, it’s not even allowed for even the VIOs to sell insurance,”

On what next after the arrest, he said, “The beauty about the new law is that it empowers the Commission to prosecute the offenders. In the previous law, for you to prosecute, you have to pass it to the office of the Attorney General. But now the law says, notwithstanding the powers of the Attorney General, the constitutional powers, which he can take over any prosecution, the Commission now has the powers to prosecute such kinds of offenders.

“And the law is very clear about it. It’s a criminal offence. So we’ll make sure that all those arrested today are prosecuted,” he added.