MVA Fund ready to transform itself

THE Motor Vehicle Accident (MVA) Fund has embarked on a five-year strategy to become more efficient.

It wants to meet international standards by 2013 with regard to reducing accidents, prompt payouts of claims and ensuring that those injured in accidents receive fast and effective treatment, the agency’s Chief Executive Officer, Jerry Muadinohamba, promised last Friday. Muadinohamba spoke at a breakfast meeting to explain the strategy to business and health representatives.The MVA boss said the organisation, whose operational costs for the last financial year were N$25,3 million, had shown a surplus of N$54,8 million, which would be used to continue reducing deficits accumulated in previous years under a different management.”We now promise to administer accident claims within three hours and to pay out medical treatment of up to N$1,5 million for accident victims within 48 hours to private hospitals and medical aid schemes,” the MVA boss told the gathering.After invoices are submitted for treatment and hospital care, the MVA would pay them within 30 days, he said.If a parent dies in a vehicle accident, children and the remaining spouse will receive N$100 000 a year paid out to them jointly until the children turn 21.Should they still be studying at the age of 21, they will still be covered by the annual MVA payments.The new MVA Act was passed in Parliament at the end of 2007 and came into force on May 2 this year, improving coverage for accident victims and direct dependants of those killed in accidents.The new act also covers drivers who collide with wild animals or livestock.The MVA does not compensate unlicensed drivers or those under the influence of alcohol in the event of an accident.According to Muadinohamba, the MVA paid out N$88,5 million in medical and support payments during the 12-month review period ending March this year.”We will concentrate more and more on accident prevention campaigns, because if the trend of payments continues, this might double by 2013 and this trend must be broken.”During the period under review, the MVA registered 3 008 new claims and administered 1 700 claims, the majority being seriously injured people from accidents that occurred in previous years.It received N$147,2 million from the Government fuel levy in this period, which amounts to 19,7 cents per litre of fuel sold.The MVA will soon move into lavish offices, which are nearing completion behind Bismarck Street in Windhoek.By the beginning of the 2004 financial year, the MVA was in a crisis as its solvency and sustainability had been compromised.The Board of Directors intervened and in February 2004 it appointed a new CEO, Muadinohamba, with the explicit mandate to arrest the crisis and to transform the Fund into a financially viable entity.Muadinohamba accomplished this and was rewarded recently with a performance bonus of N$350 000.Muadinohamba spoke at a breakfast meeting to explain the strategy to business and health representatives.The MVA boss said the organisation, whose operational costs for the last financial year were N$25,3 million, had shown a surplus of N$54,8 million, which would be used to continue reducing deficits accumulated in previous years under a different management.”We now promise to administer accident claims within three hours and to pay out medical treatment of up to N$1,5 million for accident victims within 48 hours to private hospitals and medical aid schemes,” the MVA boss told the gathering.After invoices are submitted for treatment and hospital care, the MVA would pay them within 30 days, he said.If a parent dies in a vehicle accident, children and the remaining spouse will receive N$100 000 a year paid out to them jointly until the children turn 21.Should they still be studying at the age of 21, they will still be covered by the annual MVA payments.The new MVA Act was passed in Parliament at the end of 2007 and came into force on May 2 this year, improving coverage for accident victims and direct dependants of those killed in accidents.The new act also covers drivers who collide with wild animals or livestock.The MVA does not compensate unlicensed drivers or those under the influence of alcohol in the event of an accident.According to Muadinohamba, the MVA paid out N$88,5 million in medical and support payments during the 12-month review period ending March this year.”We will concentrate more and more on accident prevention campaigns, because if the trend of payments continues, this might double by 2013 and this trend must be broken.”During the period under review, the MVA registered 3 008 new claims and administered 1 700 claims, the majority being seriously injured people from accidents that occurred in previous years.It received N$147,2 million from the Government fuel levy in this period, which amounts to 19,7 cents per litre of fuel sold.The MVA will soon move into lavish offices, which are nearing completion behind Bismarck Street in Windhoek.By the beginning of the 2004 financial year, the MVA was in a crisis as its solvency and sustainability had been compromised.The Board of Directors intervened and in February 2004 it appointed a new CEO, Muadinohamba, with the explicit mandate to arrest the crisis and to transform the Fund into a financially viable entity.Muadinohamba accomplished this and was rewarded recently with a performance bonus of N$350 000.