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  • Insurance is a form of managing risk that may arise from unexpected events which could happen through natural disasters or by man.  It aims to lessen or remove the heavy financial loss caused by these unexpected events by way of compensating or assisting in recovery.

    Insurance is a shared risk management tool where a large number of people come together to protect themselves, their businesses or property against damage or loss.

    There are many risks or hazards that can be covered by insurance- fire, theft, burglary, full or partial damage to property (caused by natural events), accident to motor vehicles or other valuable items, life insurance for self, family members, employees, medical cover, funeral expenses, travel, mortgage protection – and the like.

    Why is Insurance important?

    An unforeseen event like an accident to a motor vehicle, fire to a house or a flooding in a shop or factory can cause heavy financial loss to the individual or institution. Damage to property, household goods, machinery, stock, raw material etc can lead to severe disruptions to businesses as well as our normal lives. Individuals and businesses can even become bankrupt due to some of these events if they are not protected by way of insurance.

    Human life is subject to various risks—risk of death or disability due to natural or accidental causes. Humans are also prone to diseases, the treatment of which may involve huge expenditure.  When human life is lost or a person is disabled permanently or temporarily, there is a loss of income to the household. The family is put to hardship. Sometimes survival affects the wellbeing of the family.

    Risk has the element of unpredictability. Death/disability or loss/damage could occur at any time. Losses can be lessened through insurance.  Insurance is a tool which offers protection against risk.  It will help you recover either in full or part of the financial loss that arise out of such events. Repair and rehabilitation after a severe catastrophe can involve millions of dollars. Insurance can assist recovery by financially supporting rebuilding if adequate cover is in place.

    We are in a world where we are subject to many risks – natural and otherwise, it is important for everyone to start looking at Insurance as a basic need, just like food, clothing, shelter and education.

    When Considering Buying Insurance?

    It is important to fully understand the features of the insurance cover you are considering before you purchase. When dealing with insurance agents, ensure they provide valid Reserve Bank of Fiji licenses to validate that they are certified to sell insurance. Research your products well and ask questions if you’re unsure of product features before you commit. Insurance is a long term commitment and before you confirm your purchase it is important you understand your benefits and the claim procedures so you know what to do in the event of a loss.