The Insurance Association of Fiji has expressed growing concerns over an increase in fraudulent claims within the industry, highlighting its detrimental effects on consumer trust. According to Tarlochan Singh, Principal Officer at SUN Insurance, while some policyholders believe insurance companies are neglecting their duty to process claims, investigations often reveal attempts to defraud the system. Singh emphasized that misinformation is a significant factor contributing to the public’s distrust, stating that a few fraudulent individuals can tarnish the reputation of the entire industry.
“Consumer trust in insurance companies is low because of speculations, stemming from isolated incidents where individuals have not received payments due to fraudulent attempts,” Singh noted.
He also called for a review of the Insurance Act of 1998, advocating for updates that would modernize its provisions to better reflect current industry needs and protect consumer rights.
These sentiments resonate with broader concerns raised earlier by the Consumer Council of Fiji, which reported a surge in complaints related to insurance processes. Between 2019 and 2024, the Council noted 216 complaints, totaling around $1.7 million in disputed claims. Chief Executive Seema Shandil pointed out that many of these disputes concern delays and settling problems, especially with vehicle insurance claims.
Amidst these challenges, there is an optimistic view that initiatives aimed at enhancing consumer confidence through increased transparency and awareness can lead to a more resilient insurance sector in Fiji. Greater collaboration between industry stakeholders and consumers could foster an environment of trust, ultimately benefiting both parties. The ongoing efforts to review legislation could also pave the way for reforms that enhance the integrity of the insurance industry and restore public confidence.
Overall, while the insurance sector faces significant challenges, proactive measures toward transparency and modernization hold the promise of strengthening the industry and better protecting consumers in Fiji.
Leave a comment