Harry Simon accident could drain MVA coffers by N$31m

THE Namibian taxpayer may have to fork out more than N$31 million for the fatal crash that saw former world boxing champion Harry Simon sentenced to two years in jail for culpable homicide.

Three Belgian tourists – two adults and a baby – died in the collision with Simon’s Mercedes-Benz at Langstrand in November 2002. Survivors and relatives of the deceased have submitted four claims to the Motor Vehicle Accident (MVA) Fund.The Fund is a State institution that pays for third-party car accident victims as a general insurance programme for motorists.It is funded by a levy on all fuel sales in Namibia.A legal advisor to the MVA fund, Inonge Mainga, confirmed last week that four claims totalling N$31,28 million had been submitted by Dr Bert Coene, Carol Cornelis and two minors.The MVA will be forced to pay out the total amount if the claims are justified, because the accident took place on November 21 2002, a month before new regulations introduced a liability cap of N$730 000.”There is a likelihood that the claim amount will go up,” says Mainga.All the survivors of the Langstrand accident (injured passengers, pedestrians or their dependants) are entitled to claim compensation from the MVA.Mainga could not say whether any claims had been submitted in connection with an earlier crash involving Simon.A married couple – Siegfried and Elke Kessler – died in that accident, which took place just outside Swakopmund in April 2001.Controversially, blood samples taken from Simon and his passengers in that accident went missing while in the hands of the Namibian Police and its forensic investigation unit.Simon denies that he was driving the car at the time.APPEAL PENDING In the case of the Belgian tourists, Simon was found guilty of causing the accident and hence the death of the victims.He is free pending his appeal against the conviction and jail sentence.The MVA Fund has the right to sue the driver of a vehicle in limited cases, such as drunken driving.In Simon’s case, drunken driving was not proven.Mainga said they would look into the outcome of Simon’s court case.The cost of Simon’s well-publicised crash comes amid a High Court settlement in which a British citizen, Kelly Ann Moss, was awarded N$80 million after a car accident near Sossusvlei in May 2003 left her paralysed.Because the MVA Fund’s liability had by then been limited to N$730 000, Moss sued the driver of the vehicle, Marcelino Henckert, and his employers, Gold Venture Lodges, for N$222 million, which she had initially claimed from the MVA Fund.A settlement was reached before the case went to court.Gold Venture Lodges’ insurance company will have to cough up the N$80 million.The MVA’s Mainga said the Moss lawsuit “should be a warning to all Namibian drivers, owners of vehicles and employers of drivers because they are exposed to these kinds of unlimited liabilities”.Despite the MVA’s N$730 000 cap, they “can still go after other parties”.This means each driver or vehicle owner should take out additional liability insurance of perhaps N$20 million to cover themselves against similar lawsuits.ADDITIONAL COSTS Some people have criticised the limits introduced at the Fund, saying they provide additional administrative work and costs, while motorists are still left exposed to lawsuits although they are supposed to be insured against third-party claims.Mainga said Namibian motorists should take out “top-up insurance”, especially considering that claims by tourists are calculated in foreign currencies that are stronger than the Namibia dollar.The MVA Fund’s Corporate Counsel, Justice Chris Greenland, said a draft bill to discuss the current MVA law would be discussed at a two-day seminar today and tomorrow.The bill is set to introduce wholesale changes that would largely tie the hands of lawyers and accident victims in claiming from the Fund.UNDESIRABLE PROVISIONS It would also do away with limits to the amounts that can be paid out, particularly for medical expenses, and instances where the MVA Fund is absolved from paying compensation when, for instance, a vehicle crashes into a kudu or a tyre burst causes massive injuries and death.The Chairman of the Law Society’s Standing Committee on MVA Matters, Andreas Vaatz, says the proposed bill has a range of “undesirable” provisions that complicate claims and go against the purported reason for overhauling the existing Act – to make it victim friendly.Among the Law Society’s objections is that the MVA Fund’s mandate would be expanded to include running rehabilitation centres, publicity campaigns, and making payments monthly rather than in lump sums.This would create administrative nightmares, the Law Society feels.Vaatz argues that the MVA’s proposal that it should decide which doctors should treat victims could foster corruption where doctors would clamour to become preferred MVA service providers.PUBLICITY PLATFORM “The fear is that if one sets out the things that the fund can do so widely, at the end of the day we will find that millions and millions are spent on all these other things rather than on the compensation of victims simply because all these other things will be more interesting to the management and directors of the Fund and will buy them influence with other parastatals, give them reason to travel extensively…” Vaatz writes in a submission on the bill.He will represent the Law Society at the seminar this week, but Vaatz indicated that the seminar was merely a publicity platform, as it would not even be attended by lawmakers who should eventually decide in the best interest of the public.The draft bill looks set to attract strong objections from lawyers and accident victims who feel their claims have not been fairly attended to.As it is, the MVA Fund faces claims totalling N$89 million that have been submitted in the last five years and which the fund has refused to pay.The fund paid out N$51 million in 2003, and only N$38 million in 2004.There are about 8 000 car accidents a year in Namibia.It is believed most people are unaware of the third-party insurance that is provided by the MVA Fund.* Tangeni Amupadhi is a freelance journalistSurvivors and relatives of the deceased have submitted four claims to the Motor Vehicle Accident (MVA) Fund.The Fund is a State institution that pays for third-party car accident victims as a general insurance programme for motorists.It is funded by a levy on all fuel sales in Namibia.A legal advisor to the MVA fund, Inonge Mainga, confirmed last week that four claims totalling N$31,28 million had been submitted by Dr Bert Coene, Carol Cornelis and two minors.The MVA will be forced to pay out the total amount if the claims are justified, because the accident took place on November 21 2002, a month before new regulations introduced a liability cap of N$730 000.”There is a likelihood that the claim amount will go up,” says Mainga.All the survivors of the Langstrand accident (injured passengers, pedestrians or their dependants) are entitled to claim compensation from the MVA.Mainga could not say whether any claims had been submitted in connection with an earlier crash involving Simon.A married couple – Siegfried and Elke Kessler – died in that accident, which took place just outside Swakopmund in April 2001. Controversially, blood samples taken from Simon and his passengers in that accident went missing while in the hands of the Namibian Police and its forensic investigation unit.Simon denies that he was driving the car at the time.APPEAL PENDING In the case of the Belgian tourists, Simon was found guilty of causing the accident and hence the death of the victims.He is free pending his appeal against the conviction and jail sentence.The MVA Fund has the right to sue the driver of a vehicle in limited cases, such as drunken driving.In Simon’s case, drunken driving was not proven.Mainga said they would look into the outcome of Simon’s court case.The cost of Simon’s well-publicised crash comes amid a High Court settlement in which a British citizen, Kelly Ann Moss, was awarded N$80 million after a car accident near Sossusvlei in May 2003 left her paralysed.Because the MVA Fund’s liability had by then been limited to N$730 000, Moss sued the driver of the vehicle, Marcelino Henckert, and his employers, Gold Venture Lodges, for N$222 million, which she had initially claimed from the MVA Fund.A settlement was reached before the case went to court.Gold Venture Lodges’ insurance company will have to cough up the N$80 million.The MVA’s Mainga said the Moss lawsuit “should be a warning to all Namibian drivers, owners of vehicles and employers of drivers because they are exposed to these kinds of unlimited liabilities”.Despite the MVA’s N$730 000 cap, they “can still go after other parties”.This means each driver or vehicle owner should take out additional liability insurance of perhaps N$20 million to cover themselves against similar lawsuits.ADDITIONAL COSTS Some people have criticised the limits introduced at the Fund, saying they provide additional administrative work and costs, while motorists are still left exposed to lawsuits although they are supposed to be insured against third-party claims.Mainga said Namibian motorists should take out “top-up insurance”, especially considering that claims by tourists are calculated in foreign currencies that are stronger than the Namibia dollar.The MVA Fund’s Corporate Counsel, Justice Chris Greenland, said a draft bill to discuss the current MVA law would be discussed at a two-day seminar today and tomorrow.The bill is set to introduce wholesale changes that would largely tie the hands of lawyers and accident victims in claiming from the Fund.UNDESIRABLE PROVISIONS It would also do away with limits to the amounts that can be paid out, particularly for medical expenses, and instances where the MVA Fund is absolved from paying compensation when, for instance, a vehicle crashes into a kudu or a tyre burst causes massive injuries and death.The Chairman of the Law Society’s Standing Committee on MVA Matters, Andreas Vaatz, says the proposed bill has a range of “undesirable” provisions that complicate claims and go against the purported reason for overhauling the existing Act – to make it victim friendly.Among the Law Society’s objections is that the MVA Fund’s mandate would be expanded to include running rehabilitation centres, publicity campaigns, and making payments monthly rather than in lump sums.This would create administrative nightmares, the Law Society feels.Vaatz argues that the MVA’s proposal that it should decide which doctors should treat victims could foster corruption where doctors would clamour to become preferred MVA service providers. PUBLICITY PLATFORM “The fear is that if one sets out the things that the fund can do so widely, at the end of the day we will find that millions and millions are spent on all these other things rather than on the compensation of victims simply because all these other things will be more interesting to the management and directors of the Fund and will buy them influence with other parastatals, give them reason to travel extensively…” Vaatz writes in a submission on the bill.He will represent the Law Society at the seminar this week, but Vaatz indicated that the seminar was merely a publicity platform, as it would not even be attended by lawmakers who should eventually decide in the best interest of the public.The draft bill looks set to attract strong objections from lawyers and accident victims who feel their claims have not been fairly attended to.As it is, the MVA Fund faces claims totalling N$89 million that have been submitted in the last five years and which the fund has refused to pay.The fund paid out N$51 million in 2003, and only N$38 million in 2004.There are about 8 000 car accidents a year in Namibia.It is believed most people are unaware of the third-party insurance that is provided by the MVA Fund.* Tangeni Amupadhi is a freelance journalist