SUVA, Fiji Islands (June 14, 2000 - PINA Nius Online, June 14, 2000) - A
class action suit is expected to be filed by the end of this week against
insurance companies and brokers refusing to pay claims to businesses that
suffered losses during the May 19 Suva riot.
In an interview with PINA Nius Online, Fiji Retailers Association President
Himmat Lodhia said at least 100 members of the Fiji Retailers Association
will file collectively to seek compensation for millions of dollars lost
during the looting that hit 178 Suva businesses almost four weeks ago. Five
insurance companies - Tower Insurance Ltd., Queensland Insurance Ltd.,
Dominion Insurance Ltd., The New India Assurance Co. Ltd. and Sun Insurance
Co. Ltd. will be named in the law suit, along with independent insurance
brokers.
Two weeks ago the five major insurance companies combined forces and placed
large advertisements in Fiji's daily newspapers announcing that no member
would be admitting liability for any loss that arose from the events of May
19. Quoting a War Exclusion clause, the advertisement read:
"This policy does not cover any loss or damage directly or indirectly
caused
by or resulting from (a) War, invasion, acts of foreign enemy, warlike
operations (whether war is declared or not), civil war, mutiny rebellion,
revolution, insurrection, military or usurped power."
"One of the bones to pick with the insurance companies lies with the
Ôusurping powersÕ clause they are citing," Lohdia said, explaining
that this
War Exclusion clause was present in insurance policies at the time of the
coups thirteen years ago. "In 1987 the insurance companies paid up. Since
then, they have increased their premiums, and haven't changed that clause.
The difference this time is that the quantum loss of damages is much
higher."
The Fiji Retailers Association has consulted Queen's Counsel, law
specialists in insurance claims, who are "very interested" in the
case.
Lodhia said it is "highly likely" a Queen's Counsel team from either
New
Zealand or Australia will be brought in for the major court battle, and will
work alongside a local Fijian counterpart law firm that has yet be to named.
General Manager of Tower Insurance Ltd., Geoff Thompson said he was
surprised at moves towards a lawsuit.
"No one has been declined a claim," Mr. Thompson said, adding that
the
advertisement placed did not state that insurance companies were not going
to pay damages." At this stage, as far as Tower Insurance is concerned,
no
claims have been declined or approved. Loss adjustors have been sent to
assess the claims, and we are checking out what the actual loss was in each
case. A decision will be made once we have consulted with lawyers,
particularly when looking at the War Clause."
Mr. Lodhia predicts that at least 20 percent of the businesses hit May 19
will never reopen, regardless of insurance claims. "Some will go overseas,
even if they get their insurance claims. Because of the uncertain future
they will take their money and live happily ever afterÉelsewhere.
"Fiji is not necessarily a big profit-making place. It is a place we thought
we had a lot of peace and other advantages. In Fiji, the lifestyle has
always been more important," Lodhia said.
Lodhia said that the road to 'normalcy' for Suva retailers is painstakingly
slow. "Things are far from normal yet," Lodhia said. "We're trying
to look
at the positive, to be optimistic but it is difficult."
Efforts have been made to clean up downtown Suva. But some storefront
windows have been replaced by wooden boards, and some storeowners have still
not cleaned up the damage from almost one month ago. Lodhia said some
members who have contacted the FRA still have doubts about security issues.
The FRA called upon the army to place more soldiers on the downtown streets
during shopping hours; however, at this time, soldiers are stationed at the
Central Police Station and are patrolling on foot and in vehicles.
"There isn't an ample amount of visual security," Lodhia said, adding
that
when he inquired as to why soldiers could not man the streets, he was told
by the army that there were too many calls for individual premises to be
secured. "We'd prefer the visual presence, but for now we have to take
our
own precautions."
Presently, roughly 50 percent of local businesses have reopened - many on a
skeletal basis - but further trickle down problems stem from job losses in
various industries over the past few weeks.
"Look at the garment industry: they employ 20,000 people. For businesses,
that meant 20,000 clients roaming through stores at the end of the week to
spend their money. Now, there are so many less clients," Lodhia said.
The route to normalcy, as far as the Fiji Retailers Association is
concerned, lies with the hostages being released and the trade sanctions
being called off. Lodhia said that exporters are being hardest hit ‹ as
import-driven businesses have kept alternate channels open in the past with
markets elsewhere, such as China and other neighboring Asian countries. But
export-driven businesses - such as garment factories - are in threat of
closing down due to their reliance on Australian and New Zealand markets.
This morning, the Fiji Military Forces has reported that five container
boats returned to Fiji from Australia without any cargo.
Lodhia said that Fiji Trade Union Congress General Secretary Felix Anthony's
statements - which Lodhia believes have encouraged the trade bans - have
added to the instability in Fiji. He questioned Anthony's agenda, saying it
was more of a political nature.
"A lot of people are crying out for democracy. We in the business community
are more interested in stability," said Lodhia. "Many people don't
care
which government is in power, as long as there is stability."
On day 27 of the Fiji crisis:
* Attempted coup leader George Speight and his armed indigenous Fijian
supporters continued to hold the country's first ethnic Indian prime
minister, Mahendra Chaudhry, and other members of his government hostage in
the parliamentary complex in suburban Suva.
* The curfew ban imposed by the Fiji Military Forces was lifted in the
Western and Northern parts of Fiji. Radio Fiji reported that this was to
bring parts of Fiji back to a state of normalcy, by allowing restaurants and
bars to stay open later.
* The Fiji Times/FM96/Radio Fiji report that an interim civilian government
will be named by the end of this week. Fiji Military Forces commander
Commodore Frank Bainimarama told a press conference that the administration
will be made up of professional, competent and a political individuals. He
has remained firm in his stance that members from Speight's camp will not be
included in the interim administration.
Pacific Islands News Association (PINA)
Website: http://www.pinanius.org
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last revision June 15, 2000