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Sunday, August 20, 2017, 1:11 pm

SMVAF News - Tough Decisions PAY OFF Handsomely

29 September, 2014 - A drastic decision by the Sincephetelo Motor Vehicle Accidents Fund (SMVAF) to change its compensation policy resulting in payments for victims being paid directly to service providers has restored business to a healthy position. Prior to this, the Fund had become a cash cow for unscrupulous individuals who had made it a habit to siphon large amounts of money through fraudulent means. Incidences of fraud and corruption, under-funding, increasing road accidents and weak law enforcement among others were identified, in the Fund’s strategic plan 2008-10, as posing a serious threat to the business of the Fund.

These changes mainly affect accident victims receiving general damages and medical cost payments. Another factor that has augured favourably for the company is growth in revenue as the sale and rates of fuel increased. All these factors have resulted in a significant decline in the deficit of up to E61 million which had been growing almost uncontrollably between the period 2002 and 2007. The situation was made worse by a reduced government subvention during this period. The Fund’s total assets grew robustly by 20.8% in 2010.

“(This was) predominantly due to sound financial management in terms of strict financial controls, prudent assessment of claims and fair returns from cash investments in both short and medium term investments,” explains Chief Executive Officer Helmon Vilakati in SMVAF’s 2010 annual report. He says SMVAF’s investment policy is under serious consideration as the company aims to maximize its returns in investments as such income from investment remains the only other


   Online Magazine

We at Sincephetelo Motor Vehicle Accidents Fund are very excited to present to you our brand new ONLINE MAGAZINE.


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