Council calls for the review of Third Party Claim

03/09/2008 10:13

The Consumer Council of Fiji is calling on the Land Transport Authority (LTA) to review the claim amount in the Compulsory Third Party. Under the current provision there exists a limit to liability on public service vehicle CTP claims. These are $4,000 per person or $40,000 for all passengers collectively.    

The Council believes that the limits for the PSV CTP claims are too low and need to be raised. Essentially, the Council had made the recommendation for an urgent need for a thorough review of the CTP legislation following a research study of the Insurance Industry in Fiji, of which the research findings were published into a book and launched in May 2008. The research findings deem the review of CTP legislation as necessary so that any legislation on compensating victims of motor vehicle accidents are adequately and fairly protected.

Further, motor vehicle third party insurance is compulsory. However, the Council is concerned that the research findings revealed that the insurance industry has provided numerous exclusions to the coverage scope. This has led to numerous third party claims without any remedy under the insurance laws.