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Fuel Levy System |
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Namibia, Botswana, Swaziland and Lesotho, inherited what is called the fuel levy third party compensatory system from South Africa since 1942.
The Fuel levy system was introduced as a compulsory third party insurance payable by every driver /owner of a motor vehicle when purchasing fuel and that subsequent legislation was created for the benefit of victims of motor vehicle accidents. This system provides that loss caused by injury or death in motor vehicle accidents as a result of negligence of driver or owner is paid out of funds collected as a levy on fuel. In this way it is not possible for any motor vehicle user to be uninsured.
Through this the driver or owner or owner of the motor vehicle was indemnified from third party claims. The current fuel levy of the MVA Fund stands at 27.7 cents per liter.
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Last Updated on Thursday, 06 August 2009 12:00 |
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