Sun seeks redress

THE Accident Compensation Act 2017 does not provide insurance policies but it requires the State to provide compensation on no fault basis to any person who is a victim of a motor vehicle accident, says Solicitor-General Sharvada Sharma.

He highlighted this during the strike out application hearing before the Fiji Court of Appeal on Sun Insurance Company Ltd’s (SUN) motion to seek constitutional redress on the enactment of the Accident Compensation Act 2017.

Sun Insurance had made an application in the High Court on February 28 for judicial review, seeking relief for the uncompensated deprivation of its property, after the enactment of the Accident Compensation Act in Parliament last year.

Mr Sharma said Sun Insurance had argued that the State had engaged in competitive business when it began collecting levies or taxes from motor vehicle owners following the enactment of the Accident Compensation Act.

He said the State did not participate in the insurance market, but it imposed tax and levies which went directly to the government coffers.

He said from the government office, the compensation for any person who was a victim of a motor vehicle accident was then administered.

Sun Insurance claimed that the repeal of the Motor Vehicle’s Third Party Insurance (CTP) Act 1948 removes the CTP insurance business it had conducted for the past 18 years.

Mr Sharma said the above claim was baseless.

The State was represented by Solicitor-General Sharvada Sharma and State solicitor Bhavna Narayan while Sun Insurance was represented by Adish Narayan and Julian Moti.

The strike out application hearing will continue before Justice David Alfred tomorrow.

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