NAICOM, operators partner to end sale of fake insurance policies

The National Insurance Commission (NAICOM) and underwriting firms have joined forces with state licensing offices to ensure only genuine insurance policies are sold across the country.

Before now, operators have been working with the Federal Roads Safety Corps (FRSC) to recover N45 billion lost to fake insurance practitioners nationwide, especially in the area of third-party motor insurance.

Speaking on the plan to address some of the challenges in the sector at the just-concluded 14th Meeting of Insurers’ Committee held in Lagos, the Head of Corporate Communications and Market Development, NAICOM, ‘Rasaaq, Salami, said the Commission along with insurance companies, will be visiting state governments to sensitise them on the need for genuine insurance policies.

Salami explained that underwriting companions in the meeting agreed to also advertise outstanding claims. He said operators believe that would help to build confidence and aid development.

He said the commission promised not to endorse the recapitalisation plan of any firm that does not clear outstanding claims of its clients.

The Commissioner for Insurance/Chief Executive of NAICOM, Sunday Thomas, warned that such firms would not be certified to have crossed the recapitalisation huddle.

He, therefore, advised insurance companies to settle outstanding claims in their books.