Mbabane: In order to be sustainable, more profitable and carry out its mandate, Sincephetelo MVA fund has called for the amendment of the existing motor vehicle accidents amendment act of 2011.
This s contained in the SMVA integrated report 2020.
Speaking to the media at the MVA offices, the CEO David Myeni said the motor vehicle accidents amendment act of 2011 (the act) prioritizes on the payments of medical and rehabilitation benefits in personal injury claims and gives precedence to the payments of funeral expenses in death claims, in either case where the victim was not at fault.
Myeni highlighted that this in fact was not right as it has elements of imbalance in the case of the unfortunate incident. The proposed revised legislation will allow everyone who has been involved in an accident to benefit from MVA fund.
He noted that in the current legislation, the fuel levy was last reviewed in 2011, and therefore there is need for amendment to the legislation to allow a review if the fuel levy which is the only source of income to MVA.
Currently MVA collects 0.35cents as fuel levy. According to the MVA integrated report 2020 the levy was last revived in 2011 and currently the rate does not catch up with inflation. For the long term sustainability of the fund needs the levy to be increased.
The call for the amendment to the foundational legislation is the long term to accommodate the change in the business model. Through the reforms the fund will establish partnerships with the emergency and services to and other relevant stakeholders in deciding the best treatments practice and where necessary evacuation to the republic of South Africa.
In the proposed revised legislation MVA CEO said the fund will see a revised fuel levy which will boost the organization revenue scheme and enable it to offer the best service to customers.
It also emerged that the current benefit structure is no longer suitable and sustainable for beneficiaries. Beneficiaries under the existing benefit structure would get a minimum of E10, 000 as funeral benefit in the case of death. This figure according to MVA is no longer suitable and cannot cover the real costs of a funeral, thus in the proposed amendment there will be an improved benefit structure.