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INCREASE ROAD ACCIDENT COMPENSATION - SMVAF

By NOKUPHILA HAJI | 2025-01-20

The Sincephetelo Motor Vehicle Accidents Fund (SMVAF) wants compensation for road accident victims increased from E1 million to E1.5 million.

SMVAF has also proposed that fare-paying passengers receive a limit of E200 000 each, as well as social passengers. Fare-paying passengers currently receive up to E100 000.

This is contained in the draft framework of the Sincephetelo Motor Vehicle Accidents Fund Bill, which is yet to be tabled in Parliament.

SMVAF Head of Legal, Senzokuhle Masuku, during the sensitisation and awareness workshop of parliamentarians on SMVAF operations last week, stated that road accident victims currently received payouts of up to E1 million per accident.

He also emphasised that even bus accident victims had to share E1 million.
He made an example that in a mini-bus with 15 passengers, it is possible for five of them to sustain critical injuries.

This indicates that the compensation received by any of the five individuals may already be surpassed by the hospital costs incurred under the current E1 million allocated.

“SMVAF is a willing horse but our limitations stem from funding. We cannot provide more than what we receive. We require E170 million annually to settle claims yet we currently receive only E156 million each year, indicating that the funding level is insufficient,” Masuku stated.

He said they had submitted the Bill for review by the attorney general’s office, highlighting that it outlines principles that should guide the fund and how it should determine its capabilities.

“We also included a provision that allocates E15 000 for funeral expenses without regard to fault. However, this provision was met with criticism and comments from the attorney general, who stated that it does not comply with Section 19 of the Power Liability Act.

He explained that this pertains to the determination of fault in an accident,” he explained.
Adding, Masuku stated that the fault-free system was designed to protect the fund.

He noted that the Bill specified who was eligible to claim and what can be claimed and further stated that there hadbeen instances in the past where organisations claimed they were indebted to the SMVAF.

He, however, explained that Section 19 of the Act addresses liability on this issue. He said only a natural person who has suffered loss, harm, or bodily injury covered by the Act can make a claim.

“It cannot be an organisation or a funeral scheme. We cover general damages, medical expenses, loss of earnings, and loss of support. The fund in the new framework has been authorised to settle the bills in instalments unlike before where they paid in full,” he said.

The new arrangement as proposed in the Bill, according to Masuku is that victims will no longer receive any payment under general damages. Victims, according to the SMVAF, were receiving up to E150 000 as general damages each depending on their injuries.

General damages refer to non-economic losses resulting from an injury. Unlike tangible losses such as medical expenses or lost income, general damages encompass intangible detriments like pain and suffering, diminished quality of life, and emotional or psychological distress, making them more challenging to quantify.

Masuku explained that accident victims would now receive E100 000 each, including those who travel involuntarily by car, such as inmates who might be involved in an accident while visiting a magistrate’s court. He said the review of the Act would require a corresponding improvement.

He further mentioned that individuals have 24 months to submit claims and emphasised that they must provide valid reasons if the time limit is exceeded. “No one has taken us to court for refusing to process a claim after the deadline has passed and the revised Act has further clarified this.

Additionally, there is a new rule regarding prescription: once the SMVAF has finalised your claim and issued a decision that you find unsatisfactory,. you have 12 months to challenge that decision. Furthermore, the time frame to lodge a claim has been reduced from 24 to 12 months,” he stated.

This, according to Masuku, was due to the expensive initiatives the fund had undertaken to educate the public about its services.

He highlighted that the SMVAF primarily dealt with adults, which was why claims for children were filed by their parents or guardians. This also applies to mentally unstable individuals.
He added that compensation for future medical expenses were not provided for those who had died and was not transferred to their estates because they had not incurred any losses.

“At the end of the day, Ekuphileni Clinic must generate profit and the difference may vary slightly from that of public health facilities. Fare-paying passengers will also receive a limit of E200 000, as well as social passengers,” he stated.

‘I’ll not support removal of general damages unless’

Chairman of the House of Assembly ministry of finance portfolio committee, Lobamba Lomdzala MP Marwick Khumalo says he will not support the proposal to remove general damages claims unless he receives a clear explanation that will ensure that no individual's life is jeopardised.

Khumalo said reviewing of the legislation was based on court decisions, highlighting that the fund should enlighten them about the number of court cases they had won and those that it lost.
Additionally, he questioned the rationale behind the fund's decision to eliminate general damages claims.

Beneficiaries are currently compensated depending on their injuries and the limit is E150 000 under the general claims.
“The overall limit for an accident was E1 million in 2011, and 13 years later, we are proposing an increase of only E0.5 million, which amounts to E500 000. Given the length of time that has passed, it seems unjustified to raise the limit by just E0.5 million.

“Perhaps we should consider increasing the claim to E2 million,” he stated. He noted that the fare-paying passengers' fees increased from E100 000 to E200 000, representing a 100 per cent rise.

He mentioned that the fund was not performing well in terms of overall claims. He stated that it now seemed as though no progress had been made since the E0.5 million was added 13 years ago.

... 200 killed in road accidents yearly - CEO

SMVAF Chief Executive Officer, David Mfanimpela Myeni, revealed that 200 people were killed in road accidents yearly and their aim was to reduce the number by 2030.

Myeni said this was in line with targets set by the United Nations Decade of Action for Road Safety.

He also stated that they had disbursed claims slightly exceeding E600 million, since 2020, noting that funeral claims were now processed and paid out within 24 hours.

“We are currently planning to reduce the processing time for claims. Some developed countries no longer maintain the MVA fund. We are benchmarking with institutions such as the Transport Accident Commission of Australia to support the country, as it is currently performing well,” he stated.The CEO stated that only four countries in Southern Africa have a road accidents fund in place.

He mentioned that other developed countries have transitioned away from the motor vehicle accident (MVA) system.

He added that for those who have died, they consult with the families to ensure that claims were paid within 24 hours, depending on when the claim was filed.

In order to reduce the number of accidents, Myeni stated that they were ensuring that the public was educated about road safety. He also advised individuals to take the initiative to educate themselves. He said most accidents were caused by human behaviour.

This was after Ngudzeni MP Charles Ndlovu inquired if there were African countries that successfully manage their road accident funds and also sought to understand how the country's performance compares to that of other African nations based on available statistics.

“Do people still wait 18 months when they are severely injured and six months when they are not?” he asked.Meanwhile, Senator Linda Nxumalo inquired whether individuals who lose their lives in accidents are being compensated. She noted that many families do not file claims, resulting in a lack of compensation for the deceased.

Senator Stukie Motsa also questioned the fund regarding the protocol for individuals who experience side effects later on.

She highlighted situations where claimants receive compensation but subsequently suffer from adverse effects. “How can we reduce the number of deaths to 100?” asked Sigwe MP David Ngcamphalala. Madlangempisi MP Allen Vilane inquired about the primary contributors to these fatalities, questioning whether they were due to neglect or the result of drink-driving.

Hhohho region MP Zanele Magagula also inquired about the cause of road traffic accidents. She noted that some roads displayed high accident zone signs.

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