Allexer Namundjembo
The Motor Vehicle Accident (MVA) Fund says it cannot increase the N$7 000 funeral payout to families of road accident victims.
The fund explained that the amount is fixed by law.
Speaking at a media conference in Windhoek on Friday, senior claims manager Helena Shilongo said the fund does not have the power to raise the payout.
“We can only make recommendations through our board. We can only make recommendations to the minister so that changes can be made,” she said.
She explained that families are free to use the N$7 000 at their discretion. “We cannot demand invoices to see how the money was spent. The family may decide to spend it on food or on a coffin; it is up to them,” Shilongo said.
MVA legal manager Fenni Nashilundo said changing the payout requires legislative reform.
“The amounts are fixed, and for the amounts to be amended, the act should be amended. For this to be easier, regulations should be made so that amounts can be adjusted through consultations with stakeholders,” she said.
Nashilundo confirmed that proposals to increase the funeral benefit have been made, with N$50 000 under consideration.
“But now we have to evaluate if this is sustainable or if another amount should be set that the Fund can sustain,” she added.
Under the Motor Vehicle Accident Fund Act of 2007, families receive N$7 000 per funeral.
Injured survivors may claim up to N$100 000 for medical expenses. Dependants of deceased victims can receive loss of support benefits capped at N$100 000 and those unable to work due to injuries qualify for loss of income support, also capped at N$100 000 per year.
The N$7 000 funeral payout has remained unchanged for nearly two decades despite rising funeral and burial costs. Public calls for reform have intensified as inflation reduces the value of the benefit.
Lawmakers and the fund have suggested amendments to modernise the act.
Key proposals include moving benefit amounts into regulations so the minister of works and transport can adjust them without parliamentary approval, raising the funeral benefit from N$30 000 to N$50 000 and scrapping penalties such as the 50% reduction of claims for passengers in pick-ups and canopies.
