The National Insurance Commission (NAICOM) has countered a statement by the National Cooperative Insurance of Nigeria (NCIS), describing it as an attempt to mislead the public.
The NCIS had urged its members to conduct their businesses using their authentic NCIS motor third-party insurance.
Addressing newsmen in Abuja last Wednesday, Adetokunbo Adesanya, a director at the NCIS, called on motorists to refer police, Vehicle Inspection Officers (VIO), and Road Safety personnel to the necessary NCIS portal when questioned about motor insurance.
He also advised stakeholders, including police, VIOs, and FRSC personnel, not to verify NCIS motor insurance certificates on the Nigerian Insurance Industry Database (NIID). “We don’t belong there. We are cooperative. Ours is cooperative motor insurance and not commercial motor third-party insurance,” he said.
Regarding the validity of the certificates, Adesanya stated, “Once it is on the NCIS portal, it is valid, and if there is a claim, we will settle it promptly. That is why we are in business. The essence of cooperative insurance will be defeated if the needs of members are not met.”
Misleading statement
In response, NAICOM described the statement as illegal and misleading, asserting that the NCIS is not a licensed insurance company under its authority and should be disregarded.
“NCIS is not an insurance company licensed by NAICOM and therefore has no legal authority to sell or underwrite compulsory third-party motor insurance,” the commission stated.
NAICOM emphasized the need to alert Nigerians about illegal activities and clarify the legal position guiding mandatory third-party motor insurance, saying that according to the NAICOM Act 1997 and the Insurance Act 2003, only NAICOM is empowered by law to license insurance companies to transact different classes of insurance, including third-party motor insurance.
“The NCIS will be prosecuted if it does not desist from this illegal action, which is against public policy and the interest of the general public,” the commission warned.
What you should know
NAICOM assured the public of its commitment to protecting policyholders and legitimate beneficiaries of insurance policies bought from licensed insurance companies.
It stated that Third-Party Motor Insurance subscribers would access benefits such as a three million naira third-party property damage limit, medical treatment for bodily injuries, and compensation for deaths, which could only be provided by licensed insurance companies.
“NAICOM has previously circulated the list of insurance companies licensed and authorized by the Commission to sell or underwrite mandatory third-party motor insurance in Nigeria.
The list can also be found on the Commission’s website, www.naicom.gov.ng.”
The commission concluded by stating that any third-party motor insurance policy issued by NCIS or its affiliates is illegal.
