The government is now planning to set up a tribunal to look at the issue of compensations.
While speaking at a seminar organised by the Consumer Council of Fiji on Compulsory Third Party Insurance, Acting Prime Minister Aiyaz Sayed-Khaiyum says the issue of third party compensation through the insurance scheme has primarily been left unregulated and has been left to the court system to award damages.
He says third party insurance has been an area of insurance of much contention.
Sayed-Khaiyum says the government passed a law a few years ago where it restricted the amount of fees the lawyers could take and that is a maximum of 10 percent.
He says we all have heard some horrendous stories where the victims got compensation payments of $50,000 or $100,000 and the lawyers had taken half of it but that has now stopped.
The Acting Prime Minister says the Solicitor General’s Office has already started looking at a multipronged tribunal where people could bring the issues to the tribunal.
He says the rules relating to the payout are also being considered.
Sayed-Khaiyum says people who have great difficulties and do not have proper recourse need to be assisted.
Talks have also been held with the Consumer Council of Fiji about the setting up of the tribunal.
The council is holding the seminar to draw the attention of policy makers, victims and vehicle owners to bring about reforms in the area of Third Party Insurance, which can ensure a level playing field for all players.
The objective of the seminar is to understand why timely compensations are not made to the victims, whether the compensation amounts paid to the third party victims are fair and adequate and what reforms are needed to safeguard consumer interests.
