NAICOM, FRSC Team Up to Stamp Out Fake Motor Insurance Policies

In a decisive move to tackle the proliferation of fake motor insurance policies and improve road safety across Nigeria, the National Insurance Commission (NAICOM), the Federal Road Safety Corps (FRSC), and the National Health Insurance Authority (NHIA) have announced plans to strengthen collaboration under the Motor Third-Party Insurance Scheme.

The development followed a courtesy visit by FRSC Corps Marshal, Shehu Muhammed, to NAICOM Headquarters on Thursday, where he met with the Commissioner for Insurance, Olusegun Omosehin. The meeting underscored a shared commitment to ensuring compliance, prompt emergency response, and victim compensation on Nigerian roads.

Corps Marshal Muhammed commended NAICOM for the recent signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which he described as a landmark in driving insurance sector reforms. He emphasized the need for enhanced data exchange between NAICOM and FRSC to develop a robust system for rapid response to road accidents and timely compensation for victims.

The Corps Marshal also stressed the importance of digitizing insurance processes to eliminate fake motor insurance policies and ensure prompt emergency services, noting that such reforms would strengthen public trust in the insurance sector.

In his response, Commissioner Omosehin praised the FRSC for its efforts in modernizing the licensing system. He highlighted that NIIRA 2025 now strengthens the compulsory third-party motor insurance policy and establishes a dedicated fund to compensate road accident victims. The fund will be managed by a joint committee that includes FRSC representatives, ensuring transparency and efficiency.

Representing NHIA, Mr. Ajodi Nuhu Nasir expressed satisfaction with the inter-agency collaboration, describing it as “a robust framework that will safeguard lives, reduce road fatalities, and guarantee prompt medical treatment for accident victims.”

The agencies also agreed to integrate their data systems for seamless information sharing and to launch joint public awareness campaigns on the benefits of insurance and road safety. A special enforcement committee will be set up to monitor proper insurance coverage and crack down on fraudulent policies.

The FRSC further pledged to intensify awareness and enforcement of valid third-party motor insurance for all motorists, while NAICOM will continue to supervise compliance and regulatory adherence.

The partnership marks a significant step toward safer Nigerian roads, prompt medical response for accident victims, and stronger protection for motorists and other road users.