NEWS

Reduced Third Party Insurance Levy

Fijians will be paying less as their Compulsory Third Party payment from January 1. From next month, the Accident Compensation Commission comes into effect which will be the authority dealing
11 Dec 2017 12:16
Reduced Third Party Insurance Levy
Attorney-General Aiyaz Sayed-Khaiyum

Fijians will be paying less as their Compulsory Third Party payment from January 1.

From next month, the Accident Compensation Commission comes into effect which will be the authority dealing with compulsory third party insurance.

This means that all vehicles- be it private use or commercial use, be it vans, buses or lorries – the compulsory third party payment will be made at the commission.

And, all pay outs in relation to compulsory third party will be made out by the commission instead of individual insurance firms.

Discussion on the commission was one of the topics during the 19th Attorney-General’s Conference which wrapped up at the weekend at the InterContinental Fiji Golf Resort and Spa.

The commission, which is chaired by Governor of the Reserve Bank of Fiji Ariff Ali, also has the chair of the Insurance Council of Fiji Sarah-Jane Wild.

Attorney-General Aiyaz Sayed-Khaiyum while wrapping up the conference revealed that at least two insurance companies were opposed to the commission’s set up and one went to the extent of claiming that Ms Wild’s inclusion in the Commission was a conflict of interest.

While motor vehicle claims are the initial area which the commission will be looking at and facilitating pay out for, Mr Sayed-Khaiyum said there were other areas such as insurance for sportsmen and sportswomen which needed to be looked into and could possibly be an area of interest for the commission.

He said in a high impact sport like rugby, there were no specific insurance products available but was an area which needed attention.

Mr Sayed-Khaiyum gave the example of a rugby player he studied with, who was paralysed after an incident during a match. The rugby player later died but there was no form of insurance pay out specifically targeting sports injuries.

In 1994, a 17-year-old boy was involved in a motor vehicle accident. His compensation was paid out by the insurance company after 14 years.

Such delays will not be possible with the pay outs through the commission.

The commission will have a fixed pay out for Compulsory Third Party insurance and a person will have the option of not taking that pay out and to go to Court for a settlement.

Mr Sayed-Khaiyum also revealed that a villager in the Western Division languished and went from pillar to post trying to get pay out for his wife who died in a motor vehicle but no pay out was made.

He said the socio-economic empowerment of Fijians was critical and this commission was one way of enabling that.

Mr Sayed-Khaiyum acknowledged the role Ms Wild had played in working in the betterment of Fijians rather than putting only the interest of insurance companies paramount.

Edited by Ranoba Baoa

Feedback:  jyotip@fijisun.com.fj

Fijisun E-edition
Total Excellium
Subscribe-to-Newspaper
Fiji Sun Instagram
Subscribe-to-Newspaper