New first-up payment

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STATE Enterprises Minister William Duma says necessary changes have to be made to ensure the State receives increased revenue from extractive, logging and agriculture industry sites.
He said this yesterday after Parliament passed two Bills to amend the Motor Vehicles Act.
They are the Motor Vehicles (Third Party Insurance) (Amendment) Bill 2021 and Motor Vehicles (Third Party Insurance) (Basic Protection Compensation) (Amendment) Bill 2021.
Dependents of the dead in a motor vehicle accident receive K5,000 (if the dead is a male) or K2,500 (if the dead is a female) under the current legislation as a first-up payment before claims are processed.
Under the new Bill, the dependents receive K10,000 whether male, female or minor.
The two Bills were passed 73-7 and 74-7 on votes by Parliament and will:

  • ENSURE all motor vehicles and machinery operating in the country – including those operating in the extractive, logging and agriculture industry sites – increase the amount of basic protection compensation to dependents of persons who die as a result of motor vehicle accidents; and,
  • ENSURE that Motor Vehicles Insurance Ltd (MVIL) is only liable for accidents as a consequence of the use of registered motor vehicles.

The significance of the Motor Vehicles (third party insurance) (basic protection compensation) (Amendment) Bill 2021 is that, by introducing a new Section 18, MVIL will pay K10,000 to dependents of a person who dies as a result of a motor vehicle accident – whether the deceased is a male, female or minor – as funeral expenses funds while awaiting compensation claims.
Prime Minister James Marape commended Duma and MPs on the overwhelming passage of two Bills.
“I commend Minister Duma for this reform, consistent with Government directives to ensure money is paid to victims of motor vehicle accidents, as well as funeral expenses,” he said.
“We are working to increase compensation from MVIL funds belonging to those who register vehicles, so it will provide insurance cover for those who are injured in accidents involving these vehicles.”