LAGOS – The Economic and Financial Crimes Commission (EFCC), has vowed to join insurance industry in the fight against insurance frauds as the agency implores underwriters, policyholders and the general public to report cases to the commission.
Effiong Ekerendu, the Head, Economic Governance, Economic and Financial Crimes Commission, Enugu Command, who made the assertion on a television programme monitored in Lagos on Tuesday, 12th April, 2022 said timely information by the public would help the agency track down perpetrators of insurance fraud, decrying that Nigerians hardly report insurance frauds which makes it difficult for the commission to prosecute offenders.
According to him, any practice that negates stipulated insurance law is an offence and should not be tolerated pointing out that the law has stipulated obligations of insurance operators to policyholders and that when they contravened the law to cheat policyholders, it becomes a fraud and crime against the state.
He warned that it is a fraud for policyholders to enrich themselves with insurance claims, stressing that most policyholders connived with their vehicle engineers to quote unscrupulous claims, stating that such act amounts to fraud.
Ganiyu Musa, Chairman, Nigerian Insurers Association (NIA) said insurance operators have hitherto, not been engaging the EFCC on a systematic basis. He stated that the operators would gladly work with the EFCC on issues related to fraud.
Insurance industry is believed to be losing a whopping N160 billion annually to fake motor insurance racketeers in the country.
Barrister Rotimi Edu, the president, Nigerian Council of Registered Insurance Brokers (NCRIB), who expressed worry on the loss of revenue in the sector, said the expected annual premium income of insurance industry is being crippled by losing a whopping N160 billion annually to fake motor insurance racketeers in the country.
Edu, who stated this in Lagos recently, noted that it is disheartening to note that an industry which had been contributing less than one per cent to the gross domestic product, in spite of its huge potentials, loses such whopping amount of money to fake vendors who contribute nothing to the growth of the nation.
