The Motor Vehicle Accident (MVA) Fund recorded its best ever surplus in history as its management revealed that it wants to take its services closer to the people.
The refocused fund said in its financial statement for 2008 that it recorded a surplus of P166 million compared to P62 million in 2007.
This was credited on increases in total operating income and lower costs.
“This shows our ability to manage our resources,” Cross Kgosidiile, MVA Fund CEO said Monday.
“We believe we should spend where necessary,” he added.
The financial statements showed that net fuel levy increased marginally from P71.8 million in 2007 to P72.5 million in 2008 with the fund introducing third party insurance cover on foreign registered vehicles.
The fund recorded exchange gains of P69 million on offshore investments although they were knocked down by the global credit crunch.
MVA’s offshore investment is 21% with the crunch shaving 7% of the fund’s balance sheet and particularly its effects on financial sector.
Total assets declined from P2.0 billion in 2007 to P1.9 billion in the current period.
However, Kgosidiile believes the performance of local equities will improve.
Meanwhile, the CEO promised stakeholders that they want to make MVA Fund a high performing organization and promised to take services closer to the people.
During the period 200-09, the fund increased its office network from major centres to include Palapye and Kang.
“The two offices lie along major roads (Trans Kalahari and A1),” stated Kgosidiile.
“We are still watching the level of trends; we are not ruling out the possibility of opening new offices,” he said, adding that their outreach will also be helped by technology.
The CEO also revealed that the fund has made strides in saving lives as espoused in the Strategic Plan (2008-12) that targets service excellence grow healthy stakeholder relations and develop a high performing organisation.
In recent years, MVA has embarked on initiatives aimed at improving service delivery like the implementation of SAP Claims and Enterprise Management System, Business Process Mapping and documentation, realignment of functional departments, embarked on public education and new offices.
Kgosidiile told The Telegraph that the initiatives are paying dividends because of the positive feedback from stakeholders and the effects of roads safety, which they do with partners including Botswana Police Service and Roads Transport amongst others.
“The feedback is positive and so are the statistics. The fatalities are declining and we hope 2009 will end with lower fatalities.”
There has been a decline looking at the figures. In 2008, there were 455 road fatalities while the number was higher in 2007 at 479.
He added that strides made also include improving governance structure at MVA and removal of negligence as basis for cover.
The MVA used to be hybrid, but with the removal of negligence, Kgosidiile reasoned that they can not ‘deny claims’, although they limit the compensation.
Other features brought by the new Act include inclusion of general damages from the benefits payable by the Fund, exclusion of solatium for grief from benefits payable by the fund, inclusion of government vehicles in the compensation system and introduction of third party insurance cover on visiting foreign registered vehicles.