Insurance Guides

NAICOM Role and Regulation: A Policyholder’s Guide to Your Rights and Filing Complaints

NAICOM’s role and regulation framework is the most important shield a policyholder has in Nigeria. Have you ever felt stuck, confused, or helpless after an insurance claim was delayed or unfairly denied? It’s a frustrating position, but you are not alone, and you have a powerful ally.

Many policyholders are unaware that a dedicated government agency exists to protect them. This agency is the National Insurance Commission (NAICOM).

Understanding how NAICOM works is the key to unlocking your rights as a policyholder. This article moves beyond technical jargon to explain, in simple terms, what NAICOM does, how it protects you, and the exact, step-by-step process you can use to file a complaint and get your voice heard.

What is NAICOM and What Does It Do?

NAICOM, or the National Insurance Commission, is the primary regulatory body for the insurance industry in Nigeria.

Think of NAICOM as the referee in a football match. The insurance companies and the policyholders (you) are the players. NAICOM’s job is to set the rules, watch the game, and ensure the insurance companies play fairly, follow the law, and honor their promises.

Its authority comes from the National Insurance Commission Act 1997 and is continuously updated by new regulations, such as the landmark Nigerian Insurance Industry Reform Act (NIIRA) 2025.

Core Functions of NAICOM

To protect you, NAICOM manages the entire insurance ecosystem. Its main responsibilities include:

Licensing and Regulation: NAICOM is the gatekeeper. It is the only body that can issue or revoke licenses for all insurance companies, brokers, agents, and loss adjusters in Nigeria. If a company isn’t licensed by NAICOM, you should not do business with it.
Setting Standards: The commission creates the rules for how insurance business is conducted, from how policies are sold to how claims are paid.
Ensuring Financial Stability: NAICOM constantly monitors the financial health of insurance companies to make sure they have enough money (capital) to pay all claims. This prevents companies from collapsing and leaving policyholders with nothing.
Protecting Policyholders: This is its most critical function. NAICOM establishes consumer protection guidelines and provides a direct channel for you to seek redress if you are treated unfairly.
Market Development: It also works to grow the insurance industry, promote public awareness, and ensure more Nigerians are protected.

A New Era: The NIIRA 2025

The new Nigerian Insurance Industry Reform Act (NIIRA) 2025 modernizes Nigeria’s insurance laws, with a heavy focus on you, the policyholder. It strengthens NAICOM’s power to enforce compliance, introduces stricter penalties for bad behavior, and aligns the industry with global best practices.

What Does NAICOM Do for Policyholders Specifically?

NAICOM acts as your dedicated advocate and regulator, ensuring you get the protection you paid for. It protects policyholders by setting fair-conduct rules, intervening in claims disputes, and providing a financial safety net.

This protection takes several practical forms.

Your Right to Fair Treatment

NAICOM’s Market Conduct and Business Practice Guidelines force insurance companies to be transparent and fair. This means they must:

Use policy wording that is clear and easy to understand.
Not use deceptive or misleading advertising.
Handle your personal data securely.
Have a clear and simple process for handling your complaints internally.

Can NAICOM Help Recover Unpaid Claims?

Yes. This is one of the most important reasons NAICOM exists.

If you have a genuine claim that your insurance company is delaying, reducing, or has denied, NAICOM can intervene. The commission’s Consumer Protection and Complaints Bureau is set up specifically to investigate such disputes.

When you file a formal complaint, NAICOM will review your evidence, demand a response from the insurance company, and, if necessary, mediate a resolution. They have the power to order the company to pay the legitimate claim.

The Policyholders Protection Fund (PPF)

NAICOM also manages a crucial safety net called the Policyholders Protection Fund. This is a special fund created to compensate policyholders in the rare event that their insurance company becomes insolvent (goes bankrupt) and cannot pay claims. This ensures that even if your insurer fails, you are not left completely empty-handed.

How to File a Complaint with NAICOM: A Step-by-Step Guide

If you have a problem with your insurance provider, you must follow a specific process. You cannot go to NAICOM as your first stop.

Follow these steps exactly to ensure your complaint is heard.

Step 1: Complain to Your Insurance Company First (Crucial!)

Before NAICOM will intervene, you must first try to resolve the dispute directly with your insurance company.

Write a formal complaint letter or email to the insurance company’s dedicated complaint department.
Clearly state your name, policy number, and the details of your complaint (what happened, dates, and what you want).
Attach all supporting documents (e.g., policy document, denial letter, photos, receipts).
Keep a copy of all correspondence, including delivery receipts or “sent” emails.

Your insurance company is legally required to acknowledge and handle your complaint.

Step 2: Gather Your Documents

If the company doesn’t respond, rejects your claim, or offers an unfair settlement, you can now escalate your complaint to NAICOM. Get your file ready. You will need:

A copy of the complaint letter you sent to your insurer.
A copy of the insurer’s final response (if any).
Your insurance policy document.
All correspondence related to the claim (emails, letters).
Any other evidence, such as pictures, police reports (for motor claims), or medical bills.

Step 3: Use the NAICOM Complaint Portal (Preferred Method)

The fastest and most efficient way to file your complaint is through the official NAICOM portal.

Go to the official NAICOM Complaint Management Portal at complaints.naicom.gov.ng.
Click on “Create Complaint” or “Report a Complaint.”
Fill out the online form with your details, your insurer’s name, and the specifics of your complaint.
Upload all the documents you gathered in Step 2.
Submit the form and you will receive a tracking number. Keep this safe.

Step 4: Alternative Methods (Email or In-Person)

If you cannot use the portal, you can also:

Email: Send your complaint and all supporting documents to the NAICOM Complaints Bureau at complaints@naicom.gov.ng.
Visit an Office: You can submit your complaint in person at the NAICOM Head Office in Abuja or any of its zonal offices in Lagos, Kano, Port Harcourt, Ilorin, or Kaduna.

What Happens After You File a Complaint?

Once NAICOM receives your complaint, its Consumer Protection Bureau will:

Acknowledge: They will acknowledge receipt of your complaint.
Review: They will assess your case to ensure it is valid and that you have already tried to resolve it with your insurer.
Investigate: They will forward your complaint to the insurance company and demand a formal response within a specific timeframe.
Mediate: NAICOM will review the evidence from both sides and work to find a fair resolution. This may involve meetings or further correspondence.
Resolve: If NAICOM finds in your favor, it will direct the insurance company to take corrective action, which often means paying the claim.

The focus on policyholder protection is intensifying. Top industry leaders recognize that trust is the foundation of insurance.

As Ekerete Ola Gam-Ikon, Deputy Commissioner for Insurance at NAICOM, noted regarding the new legal framework, the focus is on “strengthening the industry’s regulatory framework, enhancing consumer protection, and promoting a more robust and effective industry.”

This high-level commitment reinforces that NAICOM’s role is shifting to be more proactive in protecting consumers, not just reacting to problems.

Conclusion: You Are Not Alone

NAICOM’s role and regulation exist for one primary reason: to ensure that the promise of “protection” sold by an insurance company is a promise kept.

You are not powerless in a dispute. By understanding NAICOM’s function and following the correct procedure, you can hold your insurance provider accountable and fight for your rights.

Your simple next step is to save the NAICOM complaint portal link (complaints.naicom.gov.ng) and their complaint email (complaints@naicom.gov.ng) to your contacts, even if you don’t need them today.

Are you currently facing a dispute with an insurer? Don’t wait. Review this guide, organize your documents, and take the first step. If you know a friend or family member with an insurance policy, share this article with them. Knowledge is the best protection.