Commissioner takes over troubled firm

AN insurance operator in Fiji, Panpacific Insurance Co Ltd, is now under the control of the government’s Commissioner of Insurance at the request of directors, and reports indicate losses may be as high as Fsl million (U 55695,000). The company, in which 63 per cent is held by a New Zealand firm, Panpacific Underwriters, was taken under government control when Finance Minister Josevata Kamikamica became aware that winding up procedures could be begun.

The Commissioner, Clive Amputch,

later announced that the company would cancel all policies and he advised policyholders to seek insurance cover with one of the other firms operating in

Fiji . He said Panpacific did not have

sufficient funds to meet re-insurance commitments. Two of the larger in surance operators in Fiji, Queensland Insurance and Do minion Insurance, extended their trading hours to cater for the new customers.

It seems that a

gull nad developed between the New Zealand and the two Fiji directors, with

the chairman of Panpacific Underwrit ers, Graham Quinn, saying the local board members appeared to be distanc ing themselves from involvement in the Fiji company. He said one director had recently withdrawn substantial business from the Fiji operation and this had threatened the continued viability of the company.

The director concerned, Singh Niranjan, responded that he had with drawn vehicle insurance from Panpacific at the company’s request, due to its complaint that it was being asked to cover too much vehicle business. Two investigators from the large Australian accountancy firm Ernst Young have been brought in by the government to go through Panpacific Insurance’s books. □

Kamikamica