The Motor Vehicle Accident Fund (MVA Fund) in Botswana was established in 1987. It was created to replace the system of individual third-party insurance premiums, which had become unaffordable, with a collective scheme funded through a fuel levy. The Fund provides automatic third-party cover for injury or death caused by motor vehicle accidents.

Legal Basis & Governance

The Fund is governed by the Motor Vehicle Accident Fund Act of 2007. It is a statutory body with the power to sue and be sued, manage funds, and fulfill its mandate. Its main purposes include:

Providing compensation in the form of benefits to accident victims.

Offering third-party insurance cover for drivers and owners.

Promoting road safety and accident prevention.

Managing all related activities.

The Fund is overseen by a Board of eight members appointed by the Minister, with at least three members from outside government. Board members serve terms of up to three years, with reappointments allowed. The Board ensures proper governance, financial management, and oversight of claims processes.

How It Works — Claims, Coverage & Benefits
Who Can Claim

Any person injured in a road traffic accident in Botswana can apply for benefits. Visitors and non-citizens are covered for medical and rehabilitation expenses while in Botswana, but typically not for loss of income or funeral costs. The Fund does not cover property damage, which must be pursued through civil claims.

Types of Benefits

Benefits include:

Medical care and rehabilitation

Loss of income

Loss of support for dependents

Funeral expenses

Incidental costs related to the accident

Support to improve quality of life for severely injured claimants

The Fund emphasizes rehabilitation and reintegration, aiming to help victims return to work and normal life.

Conditions & Timeframes

Claims must generally be filed within three years of the accident.

Accidents must be reported to the police and the Fund within 14 days.

Exclusions apply if the claimant was intoxicated, driving recklessly, unlicensed, or using an unroadworthy vehicle.

The Fund may recover costs from the negligent party after compensation is paid.

Severe Injury Handling

For severely injured claimants, the Fund provides long-term rehabilitation, vocational training, workplace modifications, and disability management programs. Early intervention and rehabilitation are key to improving return-to-work outcomes.

Funding & Sustainability

The Fund is financed through a levy on fuel, meaning all motorists contribute indirectly. Sustainability is an ongoing challenge due to the high number of claims, particularly those involving long-term care. To address this, the Fund balances its benefits with exclusions and controls, and it also develops strategic plans to guide its operations.

Strengths, Challenges & Critiques

Strengths:

Provides automatic cover for accident victims, ensuring access to compensation.

Focuses on rehabilitation and recovery, not just lump-sum payouts.

Contributes to road safety initiatives.

Challenges:

Balancing sustainability with adequate compensation.

Delays in claims processing and rehabilitation services.

Complex needs of severely injured claimants.

Difficulties for low-income claimants navigating the system.

Lower return-to-work rates among those with severe injuries.