The NPF recently announced that effective February 1, 2025, it will commence a nationwide enforcement of the Third-Party Motor Insurance Policy.

The initiative, which aligns with the provisions of Section 68 of the Insurance Act 2003 has been welcomed by NAICOM and the NIA respectively, noting that it is a significant step towards strengthening compliance, ensuring road safety, and protecting motorists and third parties on Nigerian roads.

Speaking on the commencement of the enforcement, Chief Marketing Officer, AXA Mansard Insurance Plc, Adebola Surakat, said with defaulters facing fines of up to ₦250,000, the tendency of unscrupulous elements selling fake motor insurance policies to unsuspecting members of the public may be on the rise. 

She advises the insuring public to secure all their insurance policies, including motor insurance from only registered companies and their accredited agents. 

“As a brand committed to protecting our customers and the insuring public, we strongly advise motorists to be cautious and obtain their insurance policies only from licensed and trusted insurers. 

The rise in enforcement may lead to a surge in counterfeit policies, leaving motorists exposed to financial risks. 

As a leader in the industry, we recognise that raising the awareness at this time is the right thing to do because if we allow the public to run into the wrong hands, it will be a setback for the tremendous work that we have been doing to build trust in insurance.

When people buy the counterfeit insurance policy, they will not be able to present it to the police nor will they be able to claim with it if any risks manifest. The backlash will be on the insurance sector, not the fraudulent agents. So, we are taking it as a responsibility to create awareness”. 

Surakat explained that people can visit either the NAICOM or NIA website for a list of registered insurance companies in Nigeria. 

“We have even made it simpler at AXA Mansard, any type of motor insurance ranging from Third Party Motor Insurance to Comprehensive Motor Insurance can be purchased straight from our website. You can get your motor insurance certificate in less than five minutes on either our website, mobile app or any of our welcome centres nationwide”, she said. 

“We have continuously demonstrated reliability through prompt claims payment and seamless customer experience. So, we assure the public of an excellent customer experience throughout the life cycle of the policy.”

AXA Mansard reassures its customers that it remains steadfast in its commitment to providing affordable, accessible, and genuine motor insurance solutions to protect Nigerian motorists from unnecessary financial liabilities.

“We understand the challenges that come with compliance, so we urge all vehicle owners to prioritize authenticity when purchasing their Third-Party Motor Insurance and avoid the risks associated with fake policies,” Surakat added.

The association made the presentations when the new NAICOM leadership paid a courtesy visit to association recently in Lagos.

Olusegun Omosehin, the commissioner for Insurance accompanied by his deputies, Dr. Usman Jankara and Dr. Olawoye Gam-Ikom, visited the NIA to discuss collaborative efforts for advancing the insurance sector.

Omosehin, at the visit, emphasied his commitments to fostering a robust and stable insurance industry that prioritises the protection of policyholders and beneficiaries.

“My mandate is to ensure a very safe, sound, and stable insurance sector that can protect policyholders, and consumers, and build public trust in the insurance industry.” he submitted.

He further outlined his administration’s agenda, focusing on increasing insurance penetration and ensuring efficient and prompt claims settlements.

Omosehin underscored the importance of compliance with industry regulations to achieve NAICOM’s vision and urged stakeholders to prioritize regulatory adherence.

In response, NIA members, represented by their CEOs, shared their concerns and expectations to help realise NAICOM’s vision for the industry;

1. They implored the NAICOM leadership to revisit the placement of insurance business adverts for greater visibility and awareness.
2. The sought NAICOM’s support on NIA’s claims payment committee to be established which would help facilitate prompt settlements.
3. Enforcing insurance for public buildings and construction projects to ensure safety.
4. Enhancing collaboration with government agencies for regulatory efficiency.
5. Digitalizing agency license processes for improved speed and convenience.
6. Reconstituting the IICC committee to drive industry growth and development.
7. Supporting the implementation of the Nigerian Insurance Industry Portal (NIIP) for better digitalisation and accessibility.
8. Collaborating with PenCom on group life enforcement to ensure compliance.
9. Establishing a maximum retention period for claims records to improve data management.
10. Accelerating the approval of new products to drive innovation.
11. Considering industry perspectives in policymaking for inclusive decisions.
12. Segmenting industry players to promote specialization and competitiveness.
13. Ensuring timely approval of principal officers for leadership stability.
14. Forming strategic partnerships with the government to boost economic growth.
15. Speeding up the transformation roadmap for timely implementation.
16. Sanctioning members involved in premium rate cutting to enforce compliance.
17. Promoting public-private sector collaboration in government business.
18. Ensuring market discipline to promote a culture of compliance and accountability.
19. NAICOM and NIA to worke collaboratively towards the growth and development of Nigeria’s insurance industry.

Omosehin said this on Thursday, when members of the Governing Council of the Nigerian Insurers Association led by the incoming Chairman, Kunle Ahmed, paid a courtesy visit to National Insurance Commission in Abuja.

The CFI, affirmed the Executive Management’s ambition to drive growth in the Nigerian Insurance Market.

During the meeting, the NIA incoming Chairman, extended congratulations to the recently appointed executive management of NAICOM and expressed gratitude to the Commission for its pivotal role in maintaining a fair and stable insurance sector.

He emphasized the importance of initiating the implementation of the ten-year strategic plan and finalizing the consolidated insurance bill.

He further expressed willingness to collaborate with the new executive, expressing confidence in their ability to elevate the insurance sector to greater heights.

The NIA delegation, was briefed on the Commission’s ongoing review of its strategic plan to align it with the Nigerian Insurance Industry’s 10-year strategic plan.

Overall, the meeting showcased a collaborative spirit between NAICOM and NIA, highlighting a shared commitment to advancing the insurance sector and protecting the interests of consumers.