The Sun Insurance Company claims it will incur huge losses when the current compulsory third party policy on motor vehicle insurance is removed.
Chief executive, Lolesh Sharma, claims close to thirty people will lose their jobs as the Third Party Insurance Law will be replaced by the Accident Compensation Act from January 1st.
Sharma claims the removal of the compulsory third party policy will affect a number of their outlets in rural areas.
“At this stage we looking at about 20 to 30, being a socially responsible company we will as much as possible to mitigate those loses, try to find out other avenues of employment for our staff so it is still very early in the stage. We sort of trying to do analysis as to how we can maintain our staff as they are very well trained, they have been with us for a while and largely they are based around rural parts of Fiji as you know Sun has outlets in almost every town which are very reliant on CTP as a form of income.”
He adds that they will also incur a loss of about four and a half million dollars on its gross revenue.
Under the new law, motor vehicle owners will no longer have to pay third party insurance with an insurance company. Accident victims will be able to claim for compensation without having to prove fault or negligence.
