The Government says the social welfare insurance scheme was an inefficient use of public funds, with about $60 million paid in premiums over eight years but only $33.8 million paid out in claims.

Minister for Women, Children and Social Protection Sashi Kiran told Parliament the scheme, which covered about 100,000 welfare recipients, was no longer financially sustainable.

“Over the past eight years, the government has diligently paid approximately $60 million in hard-earned taxpayer funds to FijiCare Insurance as premiums. However, a deeper dive into the metrics reveals a stark and troubling imbalance.”

Kiran says only 56 percent of the money paid by Government in premiums reached beneficiaries through claims.

“On average, a mere 56 percent of the total funds paid out by the government ended up in the hands of the beneficiaries. The remaining 44 percent did not serve our poor.”

Government figures show about $7.1 million was paid in premiums in the 2023–2024 financial year, compared with $3.8 million in claims.

In 2024–2025, premiums rose to $7.2 million while claims remained at $3.8 million.

Last financial year, the Government paid $7.7 million in premiums, with only $3 million paid out in claims.

Kiran says the scheme processed an average of about 5,000 claims annually from a pool of around 100,000 insured welfare recipients.

She says the Government is now shifting resources towards direct social welfare assistance.

More than $184 million has been allocated across six social protection programmes for the 2026–2027 financial year, including the Family Assistance Scheme, Social Pension Scheme, Child Protection Allowance and Disability Allowance.

Kiran says discontinuing the insurance model will allow Government to streamline assistance, eliminate duplication and improve the use of public funds.