Section 52: Offences by Directors, etc., of insurance institutions, etc.

(1)
A person who, being a director, partner, an officer or employee of an insurance institution-
(a) fails to take all reasonable care to secure-
(i) compliance with the provisions of this Act and the Insurance Act; or
(ii) the authenticity of any statement, information, book or any document whatsoever submitted, pursuant to the provisions of this Act; or
(b) knowingly, recklessly, negligently, wilfully or otherwise, approves or pays or is in any way connected with the approval or payment of an insurance claim which is false; or
(c)
receives or participates in sharing, for personal gratification, any money, property or other benefits, towards or after the approval or payment of an insurance claim which is false,
is guilty of an offence and liable on conviction to a fine not exceeding N250,000 or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.
(2) An insurance institution which fails to make a report to the Commission of a claim which it knows to be false or has reason to suspect is false is guilty of an offence and liable on conviction to a fine of N500,000.
(3) Any person who knowingly, recklessly, negligently, wilfully or otherwise makes an insurance claim which is false is guilty of an offence and liable on conviction to a fine of N250,000 or to imprisonment for a term of three years or to both such fine and imprisonment.