The President of the Insurance Council of Fiji Peter McPherson says there will be no insurance cover for loss of profits for businesses that will have losses because of the COVID-19 pandemic.
McPherson says for example if a business has a resort or a hotel and the property is destroyed by a fire or a natural disaster, and if there is a loss of profit, the insurance cover will be provided.
He says under the current circumstances with the COVID-19 pandemic, there is no loss of property cover as the hotel or the resort is still structurally sound.
Meanwhile, the CEO of the Fiji National Provident Fund Jaoji Koroi says they will continue to pay premiums for their hotels for the cover that protects the property from a fire or natural disaster.
He says the premiums for this year was paid last year and they are now under the insurance renewal process where discussions will take place with the insurance companies regarding coverage.
Koroi says they will continue to pay to cover for their properties irrespective of whether they are open or closed as in case of a fire, it is important to protect their hotels.
FNPF owns Sheraton Resort, Westin Resort, Denarau Golf Course and Development Land, Fiji Marriott Resort Momi Bay, the Intercontinental Fiji Golf Resort & Spa, Holiday Inn Suva, Yatule Beach Resort Limited, FNPF Hotel Resort and the Grand Pacific Hotel.
Last week, Minister for Economy Aiyaz Sayed-Khaiyum had stated that there is a big issue in the tourism sector where hotels and resorts are empty but they have to pay insurance premiums.
He says no revenue is being generated, however these hotels and resorts have to pay premiums.
Sayed-Khaiyum says he has heard that Hilton Fiji has to pay insurance premium of $4 million in a year.
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