National Fire Authority (NFA) mandatory levies are making insurance policies expensive, according to the Insurance Association Fiji.

Insurance Association Fiji representative, Tarlochan Singh, said this was a challenge facing the sector during the body’s public submission to the Standing Committee on Economic Affairs Wednesday.

Insurance companies in Fiji are required to pay a 0.06 per cent levy on the sum insured for commercial, industrial, and domestic fire policies.

A significant portion of NFA funding reportedly comes through this arrangement with local insurance firms.

“We collect the levies from the insured and pass it on to the National Fire Authority. Our concern is, why only penalise those taking out those insurance?” Mr Singh told the Standing Committee.

“There could be better avenues to collect these levies on a more equitable and fairer basis. Insurance might then become more affordable to individual people, especially households.”

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