Wednesday, October 20, 2021

High road accidents put financial pressure on MVA

The Motor Vehicle Accident (MVA) fund has paid out atleast P103.4 million directly to claimants in the last financial year. While part of the P103.4 million was directly paid to claimants, the balance was directed to various health-related service providers.  During the same period, the fund received 3 019 claims being an increase of 17 percent when compared with 2 583 claims received in the financial year 2015.

Communication and Corporate Manager Thabo Morotsi at the Fund attributed the increase in claims to the increase in road traffic accidents and associated deaths and injuries.

The Fund’s official figures shows that the higher proportion of claims received were for medical undertakings at 1 999 claims or 66.2 percent, followed by Loss of Support with 473 claims or 15.7 percent. Funeral Claims accounted for 431 claims or 14.3 percent while Loss of Earnings accounted for the remaining 116 claims or 3.8 percent.

Morotsi further stated that the MVA Fund Act requires the Fund to set aside monies for payment of future benefits of the claimants and to hold these monies in a trust account.

As a result, during the financial year 2016, a total amount of P204.1 million was set aside in the trust account as future payment of benefits that are due to claimants (also known as ‘reserves’).

“The fund has performed well because it has finalized 2 889 or 95.7% of the claims received while only 130 or 4.3% were outstanding at the end of the year which is commendable.  “.

The Fund he said also performed well in disbursement of funeral claims as all were settled within 24 hours in accordance with our Service Standards. In addition, the Fund is said to have assisted all severely and seriously injured by speedily evacuating them from the scene of road traffic crashes to the nearest appropriate hospitals.

Meanwhile the Fund has signed service level agreements with Emergency Service Providers to offer medical care and transportation of those injured within a radius of 100 km from Gaborone and major villages where the Emergency Service Providers have a physical presence. In addition, the Fund has signed service level agreements with both Bokamoso Private Hospital and Gaborone Private Hospital to enable ease of access to those injured in road traffic accidents.

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