Motor vehicle accident scheme

19/01/2018 11:24

Consumers in possession of or intending to buy a motor vehicle are prompted to pay their Motor Vehicle Accident (MVA) Levy to the Land Transport Authority (LTA).

The levy is a requirement under the Accident Compensation Act 2017 and could prove advantageous for a consumer with the introduction of the No Fault Compensation scheme.

The scheme provides compensation for any personal injury or death as a result of an accident involving registered motor vehicles in Fiji without the need to establish fault or negligence.
Vehicle owners are required to pay the levy when registering or renewing the registration of their vehicles with the LTA.

The LTA collects the levies for the Accident Compensation Commission Fiji (ACCF).

The ACCF is established to make provisions for compensation for those who suffer personal injury or death as a result of motor vehicle accidents in Fiji.

The scheme also covers both the driver and passengers inside the vehicle at the time of the accident.

To apply for compensation, consumers need to contact the ACCF and fill the required application form.
The application must be lodged within three years of the accident.

The maximum amounts payable by the ACCF in respect of personal injury suffered by a person as a result of an accident in Fiji are:
• In case of permanent partial incapacity, $75,000
• In case of permanent total incapacity, $150,000 and
• In other cases, $75 000.

Consumers are also advised that there are conditions that may exclude them from compensation.

These include driving under the influence of alcohol, conviction of an offence of driving with an excess of blood alcohol concentration or failure to comply with conditions of his or her drivers’ license to name a few.

Consumers are further reminded that the scheme is only applicable for accidents that occur on and after January 1, 2018.
The levy serves as a premium for the compensation scheme administered by ACCF. Through the scheme, vehicle owners need not pay compulsory third party insurance to insurance companies.

For those that have paid CTP to insurance companies in 2017, they have the option to transfer the unearned premium (from 1 January 2018) to ACCF or continue to run off the policy until the end of the term.

For the latter, motor vehicle owners are not required to pay premiums to the LTA until the policy expires.

If consumers opt to transfer the unearned premium, the insurer will no longer be obligated to payout on claims for victims of motor vehicles accidents that occur from 1 January 2018.

If they choose to continue the policy until the end of its term, the Insurance Company will then pay ACCF an amount that is in line with the terms of their policy.

There are different levies charged on the type of vehicles consumers possess or intend to purchase. As such, consumers are advised to liaise with the Land Transport Authority for the fees applicable to the vehicles they possess.

Vehicle owners are urged be mindful of the changes that have come into effect. They are also reminded that whilst the no fault scheme is in existence, it does not provide leeway for motorists to become complacent on the roads. In addition, motorists need to practice safety and adhere to the national laws.