Insurance Fraud is on the increase in Nigeria. You need to be extra vigilant to spot fraudulent insurance transaction before it is too late. Here are a few steps that could help you from being a victim or falling into the trap of scammers.
#1: Pricing: You need to be cautious if you are being offered a ridiculous price for your insurance. It might be a sign post that the cover you are being given might not be real after all. Fraudsters capitalise on the sensitivity of customers to price.
#2: Insurance Company Licensing: Is the insurance company licensed by the National Insurance Commission (NAICOM)? You can check out the details online to confirm if the details you are being shown tally with those on the company’s site. The trick of fraudsters is to use the real company’s name but with fake address or telephone numbers. Examine it very well. Ask questions about the type of licensing the company holds. Insurance companies are licensed to write some classes of Business- life, General Business or Composite (both life & General)
#3 Contact Details: Check carefully if the company’s contact details are current. Do they have current E-mail address, Telephone Number or Website? Are the telephone numbers those of NITEL or Starcomms defunct telephone lines such as 01- 2691234 etc? This would give you hints about the genuineness of the transaction.
#4 Policy Document: Are you being issued a policy document for your insurance purchase? If No, you are very much likely to be buying Fake.
The Insurance policy document is the contract document between you and your insurance company. It spells out the dos and don’ts of the insurance you are purchasing. Next time you are about to purchase an insurance cover, request for your insurance policy.
It has been observed that most of the Third party insurance cover obtained at the licensing offices do not give policy documents. This is because instead of the minimum Third Party Property Damage Limit of N1million stipulated by law, they offer N150,000 cover or less!! This is the real reason why their price is below the minimum specified by the Insurance Regulator, NAICOM.
Be wary of fake insurance and help rid Nigeria of fake!!