The National Insurance Commission (NAICOM), in partnership with the Nigeria Police Force, has launched a major clampdown on individuals selling fake third-party motor insurance policies.

In a statement on Wednesday, the Commission said its Third-Party Motor Insurance Enforcement Committee carried out a raid in the Mabuchi area of Abuja, targeting fraudsters who issue counterfeit insurance documents to unsuspecting motorists.

The operation follows a directive from the Inspector-General of Police on strict nationwide enforcement of valid third-party motor insurance. NAICOM described the move as part of its wider strategy to eliminate fake policies and protect motorists from fraudulent practices.

Speaking during the exercise, NAICOM’s Head of Market Development, Mr. Adeyemi Abubakar, explained that genuine third-party motor insurance provides vital compensation for accident victims, while fake documents leave policyholders exposed.

“Selling insurance without a licence is illegal. Fake policies deny citizens financial protection and support when accidents occur. We urge Nigerians to buy only from licensed insurers,” Abubakar warned.

He stressed that motorists can confirm the authenticity of their policies via NAICOM’s approved verification platforms.

Individuals arrested during the operation will face prosecution under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which prescribes penalties of ₦200,000 fine, one year imprisonment, or both for offenders.

The Commission reaffirmed its commitment to sanitising the insurance sector and restoring public confidence. It urged Nigerians to remain vigilant and avoid falling victim to fraudsters by patronising only licensed insurance companies.