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Amendment to ensure fund sustainability

27 Jul 2021

Minister of Finance and Economic Development has emphasised the need to amend the Motor Vehicle Accident Fund Act to ensure its sustainability.

Presenting the amendment bill in Parliament on Monday, Ms Peggy Serame said the objective was to amend the Motor Vehicle Accident Fund Act 2007, which provides for establishment, management and administration of the Motor Vehicle Accident Fund (MVAF).

The MVAF deals with compensation, care, benefits, medical management and rehabilitation of victims of motor vehicle accidents.

Ms Serame said proposed amendments would also improve administrative processes within the fund as well as provide additional definitions to ensure ease of applications of the act.

Changes proposed by the bill, among others, also seek to provide the necessary cover for victims of accidents caused by foreign registered vehicles transiting through Botswana by requiring third party insurance cover.

Amending the act would also provide for a limit of medical and rehabilitative compensation only during the first six months from the date of the accident or up to a limit prescribed for negligent parties, irrespective of their contribution to the accident.

Ms Serame said the amendment also sought to extend exclusions of liability to the fund to ensure that vehicle accidents arising from natural disasters were not claimable, hence avoiding occurrences that might lead to deplanement of the fund.

Also, she said, there was need to make change so that the fund would be able to recover fully the amount it had paid as compensation or which the fund shall be liable to pay as compensation to the claimants for the person who caused the accident.

That, she said, would be applicable to situations such as where the driver was under the intoxication of liquor or had stolen the vehicle or was driving recklessly.

Other clauses provide for electronic processing of claims and the period of prescription of claims had been extended from three years to five years. That, she said would be beneficial to those living in remote areas to ensure access to MVA fund services.

Under the proposed law, the word ‘claimant has been re-defined to allow emancipated minors to deal directly with the MVAF while ‘vehicle accident’ had also been re-defined to ensure that only vehicle accidents were proximate the act of driving a motor vehicle were claimable from the fund.

Jwaneng-Mabutsane MP, Mr Mephato Reatile supported the bill stating that the proposed amendments would re-align the law with what was happening on the ground.

However, he was of the view that Batswana should have been consulted so that they could have input to the proposed amendments.

MP for Francistown South, Mr Wynter Mmolotsi expressed concern that since its establishment, MVAF had not conducted enough public education.

He also complained about delays in processing of claims, which he said exacerbated the conditions of the victims caused by accidents.

Nonetheless, he supported the proposed amendments.

Mahalapye West MP, Mr David Tshere also supported the bill, but complained about the absence of MVAF offices in his constituency, saying such caused some delay in processing claims.

Mr Tshere also suggested that attention should be paid to those that had caused accidents intentionally.

He was of the view that some accidents were motivated by opportunists.

MP for Lobatse, Dr Thapelo Matsheka praised the bill for filling up the gaps in the law.

He said the MVAF was proactive in assisting victims.

“Improvement of administrative process will become handy in assisting victims swiftly,” he said.

He also welcomed replacement of board members as well as re-definition of some terms used to ease applying the law.ENDS

Source : BOPA

Author : Mmoniemang Motsamai

Location : Gaborone

Event : Parliament

Date : 27 Jul 2021