MVA Fund reviews benefits amid outdated funeral payout
The Motor Vehicle Accident (MVA) Fund is considering amendments to its legislation amid mounting concerns that the N$7 000 funeral benefit – unchanged since 2007 – no longer reflects Namibia’s economic realities.
Joelynn Kurz, the fund’s chief legal services officer, recently confirmed that the fund is ready to review the outdated provisions.
“Isn’t it time that we talk about the funeral that’s currently still N$7 000 from 2008, when the 2007 Act was enacted? We need to reflect on these things and also reflect on the policy that we want to put in place,” she told stakeholders at a consultative meeting last week.
The fund said proposals from other regions varied widely, with some suggesting an increase to N$50 000, while others called for more modest adjustments in line with affordability.
Assistant legal advisor Fenni Nashilundo stressed that the outdated benefit highlights the need for more flexible systems.
“If you see our N$7 000 is 18 years old, as old as the Act itself, but you can’t increase that amount without conducting the very process that we are doing today,” she said.
“The intention is to move monetary values into regulations so that benefits such as funeral cover and medical support can be reviewed and increased more frequently. That way, we can keep pace with the cost of living and better align with our economic realities," Nashilundo explained.
Ease of changes
The MVA Fund’s benefits have evolved considerably since independence. Initially, payments were only made if negligence could be proved, often through complex legal processes. In 2001, compensation caps were introduced, including N$20 000 for funerals and N$380 000 for medical costs.
The 2007 legislation represented a major shift, moving away from lump sum payments towards comprehensive rehabilitation.
Under this framework, medical benefits rose dramatically to N$1.5 million per person, per incident, and case managers were introduced to work directly with victims from the hospital to their return to school, work or independent living.
Nashilundo said the amendments now under discussion aim to build on this philosophy while correcting shortcomings that have emerged over time.
“Our current system makes it difficult to adjust benefits quickly,” she explained. “When values are fixed in the Act, you can’t increase them without going through a full legislative process. By moving monetary figures into regulations, we can ensure regular updates that keep pace with the cost of living.”
Equitable standards
She added that the proposed reforms are guided by the principle of placing rehabilitation at the centre of the fund’s operations rather than offering short-term payouts.
Among other changes being considered is the removal of the 50% reduction imposed on claims from passengers injured while riding on the back of vehicles such as bakkies and trucks.
This measure, Nashilundo noted, unfairly penalises rural communities where such transport is often the only available option.
The fund also wants to extend loss-of-support benefits to major children who remain dependent while still studying, with support continuing until they complete an undergraduate qualification but capped at age 25 to prevent abuse.
Funding challenges also feature prominently in the debate. The fund is currently financed through a levy of 47 cents per litre of fuel, but officials warned that over-reliance on a single source was unsustainable given rising accident rates.
Nashilundo explained that new sources of revenue are being considered, including additional levies on foreign-registered and locally registered vehicles as well as electric vehicles, which currently do not contribute to the fund. “If they are involved in an accident, we are required to pick them up and provide benefits, but they don’t contribute anything,” she noted, adding that ongoing consultations will determine what is affordable and fair.
The reforms are being shaped through a national consultation process spearheaded by the National Development Planning Commission (NDPC), which emphasises a whole-of-society approach.
Kurz urged members of the public and stakeholders to submit written inputs by the end of September. “The success of this process depends on all of us working together towards a common goal,” she said.
Joelynn Kurz, the fund’s chief legal services officer, recently confirmed that the fund is ready to review the outdated provisions.
“Isn’t it time that we talk about the funeral that’s currently still N$7 000 from 2008, when the 2007 Act was enacted? We need to reflect on these things and also reflect on the policy that we want to put in place,” she told stakeholders at a consultative meeting last week.
The fund said proposals from other regions varied widely, with some suggesting an increase to N$50 000, while others called for more modest adjustments in line with affordability.
Assistant legal advisor Fenni Nashilundo stressed that the outdated benefit highlights the need for more flexible systems.
“If you see our N$7 000 is 18 years old, as old as the Act itself, but you can’t increase that amount without conducting the very process that we are doing today,” she said.
“The intention is to move monetary values into regulations so that benefits such as funeral cover and medical support can be reviewed and increased more frequently. That way, we can keep pace with the cost of living and better align with our economic realities," Nashilundo explained.
Ease of changes
The MVA Fund’s benefits have evolved considerably since independence. Initially, payments were only made if negligence could be proved, often through complex legal processes. In 2001, compensation caps were introduced, including N$20 000 for funerals and N$380 000 for medical costs.
The 2007 legislation represented a major shift, moving away from lump sum payments towards comprehensive rehabilitation.
Under this framework, medical benefits rose dramatically to N$1.5 million per person, per incident, and case managers were introduced to work directly with victims from the hospital to their return to school, work or independent living.
Nashilundo said the amendments now under discussion aim to build on this philosophy while correcting shortcomings that have emerged over time.
“Our current system makes it difficult to adjust benefits quickly,” she explained. “When values are fixed in the Act, you can’t increase them without going through a full legislative process. By moving monetary figures into regulations, we can ensure regular updates that keep pace with the cost of living.”
Equitable standards
She added that the proposed reforms are guided by the principle of placing rehabilitation at the centre of the fund’s operations rather than offering short-term payouts.
Among other changes being considered is the removal of the 50% reduction imposed on claims from passengers injured while riding on the back of vehicles such as bakkies and trucks.
This measure, Nashilundo noted, unfairly penalises rural communities where such transport is often the only available option.
The fund also wants to extend loss-of-support benefits to major children who remain dependent while still studying, with support continuing until they complete an undergraduate qualification but capped at age 25 to prevent abuse.
Funding challenges also feature prominently in the debate. The fund is currently financed through a levy of 47 cents per litre of fuel, but officials warned that over-reliance on a single source was unsustainable given rising accident rates.
Nashilundo explained that new sources of revenue are being considered, including additional levies on foreign-registered and locally registered vehicles as well as electric vehicles, which currently do not contribute to the fund. “If they are involved in an accident, we are required to pick them up and provide benefits, but they don’t contribute anything,” she noted, adding that ongoing consultations will determine what is affordable and fair.
The reforms are being shaped through a national consultation process spearheaded by the National Development Planning Commission (NDPC), which emphasises a whole-of-society approach.
Kurz urged members of the public and stakeholders to submit written inputs by the end of September. “The success of this process depends on all of us working together towards a common goal,” she said.
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