SMVAF PROPOSES RAISING CLAIMS CAP BY 50%

MBOMBELA – The Sincephetelo Motor Vehicle Accidents Fund (SMVAF) is proposing a review of road accident victims’ claims, to increase the cap to E1.5 million.
This proposed increase represents a 50 per cent rise in the limits of the claims. The initiative is included in the upcoming Motor Vehicle Accident (MVA) Bill, which will be presented in Parliament by the Minister for Finance, Neal Rijkenberg, as the portfolio minister for the parastatal. The Bill aims to amend the MVA Act of 1991, which was last updated in 2011. The revised claims are set to range from E15 000 to E1.5 million for road accident victims.Details of the proposed changes were shared with Members of Parliament (MPs) and Senators who serve on the Finance Portfolio Committee during a workshop hosted by the SMVAF.

This workshop was designed to inform parliamentarians about the fund’s operations, financial status, challenges and efforts to enhance service delivery, including the proposed claims review. Senzokuhle Masuku, the Head of Legal at SMVAF, guided the MPs through some sections of the Act that would be affected by the proposed Bill. He remarked: “MVA is a willing horse. With all resources available, we can deliver well above expectations, but what limits us are our limited resources.”

Sufficient

He elaborated that even a projected increase of 6 cents per annum in the fuel levy would not be sufficient to fund the proposed claims. Masuku indicated that the fund aims to elevate the overall limit per incident from E1 million to E1.5 million. This limit represents the maximum compensation available to victims of road accidents. Additionally, they proposed increasing the maximum claim benefit for fare-paying passengers from E200 000 to E1.5 million. Under the current Act, claims fall between E100 000 and E1 million. For social passengers, the proposed benefit will rise from E50 000/E500 000 in the current Act to E200 000 and E1.5 million, respectively.

Workmen’s compensation for passengers is also set to increase, with proposed limits ranging from E100 000 up to E1 million. Funeral expense benefit claims will rise to E15 000, up from E10 000. However, the maximum payment for loss of income will remain at E1 million. Masuku emphasised that any increase in the claim limits requires a corresponding improvement in the fuel levy.In 2023, the South African Road Accident Fund (RAF) adjusted the amounts defined in section 17(4)(c) of the Road Accident Fund Act, No. 56 of 1996, to R352,489, effective October 31, 2023, to address the impacts of CPI inflation.

The proposed Bill will also consider alternative fuel sources, such as electric vehicles, whereas the current Act only defines fuel as petrol and diesel. Additionally, the definition of driving in the proposed law will encompass driverless vehicles. Masuku noted that while the current Act mandates a fuel levy only from fuel importers, the new proposal includes those who blend and produce fuel.

Exceptional

Under the current Act, individuals have up to 24 months to file their claims, barring exceptional circumstances. The new proposal seeks to shorten this period to four months. Masuku explained that the Bill allows victims the right to appeal SMVAF’s claims decision in court within 12 months.  The reduction in the claim lodging period is intended to minimise Incurred But Not Reported (IBNR) claims. Masuku also reported that the fund has undertaken several initiatives to raise awareness about the fund and the claims process, including through the Ingwenyama Cup. “We do not expect there to be anyone in Eswatini (liSwati) who is unaware of the MVA Fund, as the Ingwenyama Cup games are played at community level,” he said.

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