How to verify your motor insurance and avoid fake cover

Technology is transforming how business is done globally, and in Nigeria, it is redefining the motor insurance landscape, giving policyholders power to verify the authenticity of their coverage in real time.

Today, with just a mobile phone, motorists anywhere in the country can confirm whether their insurance policy is genuine. Through platforms like askniid.org or the USSD code 56511#, verification is now instant, accessible, and seamless.

This shift is the result of deliberate investments by insurers to digitise operations and improve customer access. At the centre of this transformation is the Nigerian Insurance Industry Database (NIID), an electronic repository where all licensed insurers are required to upload details of every motor insurance policy issued.

The implication is clear, any motor insurance policy that cannot be found on the NIID platform is not valid, regardless of where or how it was purchased.

The importance of verifying your motor insurance policy cannot be overstated. Insurance only serves its purpose when claims are honoured, and claims can only be paid on valid, verifiable policies.

Motorists holding fake or unregistered certificates risk being left stranded in the event of an accident, with no compensation and no legal protection. In essence, such policies are worthless.

This risk is even more significant following the upward review of motor insurance premium rates by the National Insurance Commission (NAICOM in 2023. The enhanced rates come with better compensation limits, making genuine coverage more valuable than ever.

For example, private vehicle third-party insurance now attracts a premium of N15,000, with a compensation limit of up to N3 million. Commercial categories, including trucks and goods vehicles, offer even higher coverage up to N5 million, reflecting the increased protection available to policyholders.

Missing out on these benefits because of fake insurance is a costly mistake.

How to Verify Your Policy

Verifying your insurance status is simple and takes only a few steps. Motorists can visit www.askniid.org

on any internet-enabled device; or dial 56511# on any mobile phone, even without internet access

On the NIID portal, users can check their policy by entering either their vehicle registration number or insurance policy number. Within seconds, the system displays key details, including the vehicle’s registration information, insurer, and policy validity.

If the result shows “Policy not found” or “Not available on NIID database,” it is a clear indication that the certificate is fake. A valid policy, on the other hand, provides full details and confirmation of authenticity.

The NIID platform has become a critical tool in the fight against fake insurance. It is widely used not only by motorists but also by law enforcement agencies to validate insurance certificates on the spot.

Developed by the Nigerian Insurers Association (NIA) in collaboration with NAICOM, the database has significantly reduced fraudulent practices in the industry. Its integration with agencies such as the Federal Road Safety Commission, the Nigeria Police Force, and Vehicle Inspection Offices has strengthened enforcement and improved compliance.

Every genuine motor insurance policy issued in Nigeria is expected to be uploaded to the NIID, making verification a standard and reliable process.

According to Segun Bankole, deputy general manager, Corporate Communications & Investor Relations at Sovereign Trust Insurance Plc, verifying your insurance policy is not just a precaution, it is a necessity.

He notes that confirmation of policy authenticity ensures that claims will be honoured when they arise, while also protecting motorists from embarrassment during routine checks by law enforcement agencies.

Beyond compliance, genuine insurance offers peace of mind. It assures policyholders that they are financially protected and legally covered.

Bankole also highlights the flexibility now available in premium payments, noting that arrangements can be structured quarterly or periodically, depending on agreements with insurers—making genuine insurance more accessible.

The benefits of genuine motor insurance far outweigh the perceived savings of fake policies. With a relatively modest premium, motorists gain access to substantial compensation and legal protection.

On the flip side, fake insurance exposes drivers to multiple risks, financial loss, legal penalties, and even imprisonment, as it is illegal to operate a vehicle without valid insurance in Nigeria.