Only licensed operators can underwrite compulsory third-party motor insurance: NAICOM
The National Insurance Commission said it is determined to flush out illegal and fake insurance operators defrauding, deceiving, and misleading the public for their selfish interests.
NAICOM said this in a notice on Tuesday in Abuja while reacting to a statement by the National Cooperative Insurance Society of Nigeria.
The commission said that NCIS had announced that the validity of motor vehicle insurance transactions (provided by NCIS) was derived from the relevant legal framework and not subject to government intervention.
NAICOM in the notice described the statement as illegal and misleading, which should be disregarded.
”NCIS is not an insurance company licensed by NAICOM and therefore has no legal authority to sell to the public or underwrite the compulsory third-party motor insurance.
”Consequently, it has become imperative for NAICOM to alert Nigerians to the above illegal activities and clarify the position of the law guiding the mandatory third-party motor insurance for all vehicles. By the provisions of the NAICOM Act 1997 and the Insurance Act 2003, only NAICOM is empowered by law to licence insurance companies to transact different classes of insurance offered to members of the public, 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 said.
NAICOM assured the public that it remained committed to ensuring that policyholders and legitimate beneficiaries of insurance policies bought from licensed insurance companies enjoyed the benefits.
The commission said the third-party motor insurance subscribers would access 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.
It stated, “NAICOM has previously circulated the list of insurance companies licensed and authorised by the commission to sell or underwrite the mandatory third-party motor insurance in Nigeria. The list can also be found on the commission’s website, www.naicom.gov.ng.”
The commission said that any third-party motor insurance policy issued by NCIS or its affiliate was illegal.
(NAN)
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