Insurance regulators, the government and insurance companies themselves are working very hard to curb fake motor insurance policies in Nigeria. It is a very tough battle, and one that is still growing. The astonishing fact is that most of these fraudulent insurance transactions are carried out at the State Ministries of Transport, and Local Government licencing offices.
When a national newspaper investigated government offices, it found that third-Party Motor insurance policies are offered for N2,000 depending of your bargaining skills instead of the N5,000 regulated tariff rate approved by the National Insurance Commission (NAICOM).
One of the main issues with these fake certificates is that they bear the branding of unregulated insurance companies. According to sources, nearly 60 per cent of motor vehicles plying Nigerian roads carry fake insurance certificates.
The insurance governing bodies along with the Nigerian government has designed necessary reforms in the insurance sector focused on enforcing of compulsory insurance products, increase insurance awareness and reduction in the incidence of fake insurance documents and payment of claims.
One piece of good news from the Nigerian Insurance Industry Database (NIID) is that statistics in respect of motor insurance business provided by member companies revealed an increase of more than 50% over the previous year's figure especially in third party motor insurance business.