Government defends $60m welfare insurance spend

Suva, Fiji – The Fijian government is defending its decision to scrap a social welfare insurance scheme, citing its inefficiency and financial unsustainability. Minister for Women, Children and Social Protection Sashi Kiran informed Parliament that the scheme, which covered approximately 100,000 welfare recipients, represented a poor use of public funds.

Over an eight-year period, the government paid out about $60 million in premiums to FijiCare Insurance. However, Kiran revealed a significant imbalance, with only $33.8 million paid back to beneficiaries through claims. This means a substantial 44% of the funds collected did not reach those in need.

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Over the past eight years, the government has diligently paid approximately $60 million in hard-earned taxpayer funds to FijiCare Insurance as premiums. However, a deeper dive into the metrics reveals a stark and troubling imbalance.

Financial figures highlight the scheme's shortcomings. In the 2023–2024 financial year, $7.1 million was paid in premiums, but only $3.8 million was disbursed as claims. The following year saw premiums rise to $7.2 million, while claims remained stagnant at $3.8 million. Last financial year, premiums amounted to $7.7 million, with claims at just $3 million.

Kiran stated that the government is now shifting its focus and resources towards direct social welfare assistance. More than $184 million has been earmarked for six social protection programs in the 2026–2027 financial year, including the Family Assistance Scheme, Social Pension Scheme, Child Protection Allowance, and Disability Allowance. The minister believes discontinuing the insurance model will streamline aid, eliminate duplication, and improve the overall use of public funds.

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On average, a mere 56 percent of the total funds paid out by the government ended up in the hands of the beneficiaries. The remaining 44 percent did not serve our poor.