Proposed vehicle law to increase revenue: MVIL

MOTOR Vehicle Insurance Ltd (MVIL) managing director Michael Makap says the proposed changes to its legislation will increase its revenue.
He said there were amendments to the legislation to be tabled in Parliament in April to enable MVIL to push Compulsory Third Party (CTP) insurance and registration functions to the extraction, forestry and agriculture industries.
“The current legislation restricts us,” Makap said.
The legislations to be amended include the Motor Vehicles (Third Party Insurance) Act and Motor Vehicles (Basic Protection Compensation) Act.
Makap said the MVIL’s turnover was around K100 million per annum.
“MVIL is one of the consistent dividend-paying State-owned enterprises since 2011,” he said.
“This will require planning and stakeholder engagement activities which are currently doing in preparedness for the law to be passed.
“This law is necessary to extend our CTP insurance cover to employees of these spaces that are not covered now and to also generate revenue for the provincial governments in which the investments are conducted.”
He said the economy was young and growing.
“As the country grows in terms of economic investments, naturally the government will be required to build an infrastructure across the country.
“Imagine a highway connecting Madang to Mt Hagen to Moresby through Hela and Gulf.
“They are also considering connecting Lae to Port Moresby through Oro and linking Milne Bay to Moresby.”
He said the Government planned to build major roads to allow people to access the provincial capitals.
“These are not dreams. They will be a reality in the next 10 years,” he said.
He said the number of machinery, equipment and vehicles would significantly increase.