The Laws of Fiji
Search
Last Updated: 1 August 2022
AN ACT TO PROVIDE FOR THE REGULATION OF THE BUSINESS OF INSURANCE, FOR THE LICENSING AND SUPERVISION OF INSURERS AND INSURANCE INTERMEDIARIES, AND FOR RELATED MATTERS
[INS 4] Liability for conduct of agents and employees4
4
- (a)on which a person in the circumstances of the insured could be reasonably expected to rely; and
- (b)on which the insured in fact relied in good faith.
(2) An insurer is responsible, as between the insurer and insured, for the conduct of an employee of the insurer in relation to any matter relating to insurance, whether or not the employee acted within the scope of his or her employment.
(3) If a person is the agent of one insurer only, the insurer is responsible, as between the insurer and the insured, for the conduct of an agent of the insurer in relation to any matter relating to insurance, whether or not the agent acted within the scope of the authority granted to the agent by the insurer.
(4) If a person—
- (a)is the agent of one insurer in respect of one class or classes of insurance business; and
- (b)is the agent of another insurer in respect of another class or other classes of insurance business,
the provisions of this section do not operate—
- (c)so as to make the insurer in paragraph (b) responsible for the conduct of the agent in respect of the class or classes of insurance business of the insurer in paragraph (a); or
- (d)so as to make the insurer in paragraph (a) responsible for the conduct of the agent in respect of the class or classes of insurance business of the insurer in paragraph (b).
(5) If a person is the agent of more than one insurer and the person engages in any conduct relating to a class of insurance business in which the person is not the agent of any of those insurers, the insurers are jointly and severally liable for that conduct, as between themselves and the insured, despite the fact that the agent acted outside the scope of the authority granted by any of the insurers.
(6) If a person (the “principal agent”) is an agent of an insurer and the principal agent appoints a second person (the “subagent”) to act as agent of the principal agent, then for the purpose of determining the ultimate responsibility of the insurer under this section the actions of the subagent are to be the actions of the principal agent irrespective of whether—
- (a)the insurer and principal agent have an agreement which forbids the principal agent from appointing a subagent; or
- (b)the subagent acted outside the scope of his or her authority.
(7) The responsibility of an insurer under subsection (2), (3), (4), (5) or (6) extends so as to make the insurer liable to an insured in respect of any loss or damage suffered by the insured as a result of the conduct of the agent or employee.
(8) Subsections (2) to (7) do not affect any liability of an agent or employee of an insurer to an insured.
(9) An agreement, in so far as it purports to alter or restrict the operation of subsections (2) to (7), is void.
(10) An insurer must not make, or offer to make, an agreement that is, or would be, void by reason of subsection (9).
(11) An insurer who contravenes subsection (10) commits an offence and is liable on conviction to a fine of $10,000.