Third Party Insurance in Fiji – Who Pays, Who Profits and Who Loses?

06/12/2016 13:30

Third Party Insurance is of vital importance since it impacts victims of motor vehicle accidents when they do occur. Third party law is based on a very clear understanding which is, to protect third party victims in a motor vehicle accident.  

However even though all motor vehicle owners are compelled by law to purchase a Compulsory Third Party Insurance, fair compensation for accident victims is yet to be seen.


To address some of these issues the Consumer Council of Fiji is organising a Seminar this Thursday 08 December, 2016 at the Attorney-General’s Conference Room, Level 9, Suvavou House in Suva.

The aim of this Seminar is to try to understand why timely compensation is not made to the victims; whether the compensation amount is fair and adequate and what reforms are needed to safeguard consumer interests.


The payment of third party insurance is to cover the risks of the motor vehicle drivers against accidents they may cause. The payment of premiums are made to the insurance companies, however, the payout is not given to the third party victims when accidents occur.


Apparently, there are limitations in the payouts, as it is left entirely on the industry to make the decision.  The amount that a third party victim is allowed to receive under the current legislation governing third party insurance is a challenge in itself. There are limits on public service vehicles CTP claims.

Millions of dollars are paid annually to insurance companies in the form of CTPI by consumers of public and private transportation while the actual compensation when paid out is of a measly sum.


Key stakeholders in the Insurance Industry, Fiji Bus Operators Association, private legal practitioner, accident victims, Judicial Department of Fiji, Reserve Bank of Fiji, and Ministry of Infrastructure and Transport will be part of the said panel discussion.