Company eyes extra K50mil under amendment

THE Motor Vehicle Insurance Ltd (MVIL) can collect an extra K50 million annually under the proposed amendments to the Motor Vehicles (Third Party Insurance) Act, managing director Michael Makap says.
Makap said for 11 years (2008-2019), MVIL paid a total of K281 million in dividends to Kumul Consolidated Holdings (KCH) Ltd.
“For 2020, we will be making a net profit of about K67 million and according to the dividend policy of KCH, I think we will be paying K33 million in dividends for 2020,” he said.
Makap said they expected the amendment to be passed in next month’s Parliament sitting.
He said the amendments would enable MVIL to push compulsory third party and registration functions to the extraction, forestry and agriculture industries, which currently were not covered by MVIL.
“We should be making around K50 million annually,” he said.
“Those that are outside of our jurisdictions; forestry, logging, agriculture and mining areas – the law doesn’t allow.
“So now we are trying to change the law to include them.”
He said the amendment of the Motor Vehicles (Basic Protection Compensation) Act would also see a basic compensation increase from K5,000 to K10,000.