With the festive season being one of the busiest period for the Motor Vehicle Accident Fund of Namibia (MVA Fund) considering the high accident rates, we thought it was a prudent time to look at how the fund had performed in the past financial year, especially under lock down regulation enacted to contain the spread of COVID-19.
The fund which levies 47.7 cents for every litre of fuel sold in the country, saw its revenues declining from N$551.00 million in 2019 to N$503.4 million in 2021 as a result of declined fuel sales due to restricted movement during lockdown.
On the other hand, claims expenses for the MVA FUND reduced to N$208.9 million for the year ended 31 March 2021, which it attributed to a decrease in registered and assessed claims as a result of national lockdowns.
“Overall, there have not been savings in the annual claims expenses when comparing N$280.9 million spent during 2019 against a spend of N$285.4 million for the year ended 31 March 2020. On the other hand, claims expenses reduced to N$208.9 million for the year ended 31 March 2021, which is attributed to a decrease in registered and assessed claims as a result of national lockdowns. Notwithstanding the fact that compared to the financial years ending 2019 and 2020 respectively, the financial year ending 2021 showed a reduction in claims expenses,” MVA Fund Chief Executive Officer, Rosalia Martins-Hausiku said in responses to an inquiry from The Brief.
Quizzed if the fund will seek a review of the levy to bolster its revenues, she said the fuel levy adjustments are informed by the Fund’s actuarial valuation results as provided by the Fund’s appointed independent Actuaries.
“For the year-ended 31 March 2021, actuarial results indicated that current levies, as last adjusted in 2013, are sufficient to cover the Fund’s operations. The Fund will therefore not seek an adjustment to the fuel levy for the current financial year.”
Martins-Hausiku said the surge in the coronavirus cases during the third wave, resulting in bed shortages at state hospital beds, drove up its claims because of the high costs owing to the use of private hospitals.
“On the financial front, while there were reductions in claims recorded during the first COVID-19 wave and resultant lockdowns, the Fund experienced an upsurge in claims expenses during the third wave owing to state facilities being fully dedicated to COVID-19 patients. The Fund had to mostly make use of private facilities for its patients which proved to be more costly,” she said.
Commenting on whether the Fund was still moving ahead with its plans to invest in the construction and setting up of its own Trauma Centre as part of long term cost containment measure, an idea which it had touted some years back, the MVA Fund CEO said , “the process of setting up the Fund’s Trauma Centre is still underway. The purpose of this centre is not only for road crash related injuries and trauma, but all other trauma related cases in the country, while at the same time supporting the State’s medical sector. The public will be informed once notable development has been made in this regard.”
The MVA Fund is a government entity mandated to design, promote and implement crash and injury prevention measures in the country.
