Concerns within the Fiji rental car industry are intensifying, as the Fiji Rental Car Association voices significant challenges regarding insurances and vehicle age regulations. Vice President Jyoti Lal brought attention to these pressing issues at a recent Town Hall meeting, emphasizing that many major insurance providers have either declined to offer coverage or have become unavailable to rental operators seeking essential policies.
Lal noted a troubling trend where numerous operators have faced insurance denial despite their outreach to reputable companies. “No one wants to take our insurance, and we have very big stakeholders in insurance. But all have declined our insurance policy,” she lamented.
In conjunction with the insurance dilemma, Lal urged the Land Transport Authority (LTA) to reassess the age limitations imposed on rental vehicles, which are currently restricting older, well-maintained vehicles from being utilized. Responding to these concerns, LTA Manager of Regulation Samuela Veitala announced that the age limit for secondhand rental cars has recently been extended from three years to five years. Veitala added that a further review is planned, contingent on an upcoming audit of all rental vehicles in Fiji.
In a broader context, Veitala confirmed that the LTA is actively engaging with the Consumer Council regarding the insurance challenges facing rental operators. He acknowledged that the reluctance of insurance companies stems from perceived higher risks and lower bond rates inherent in the rental sector.
The issues highlighted by the Fiji Rental Car Association resonate with broader challenges observed in the transport sector in Fiji, such as rising operational costs, stringent regulations, and the emergence of illegal operators that undermine legitimate businesses. The ongoing dialogue between rental car operators and regulatory entities suggests a collaborative approach is being established to address these industry-wide problems.
As these discussions continue, there is a hopeful outlook for the rental car sector. By fostering communication and cooperation with regulatory bodies like the LTA, the industry may see necessary reforms that promote a fair and equitable environment for all operators and consumers alike.
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