Botswana Motor Vehicle Accident Fund started operations on 1 January 1987. Its establishment was at short notice, born of necessity by the insurance industry’s announcement of intended increases of third party premiums by up to 600 per cent.
The industry had cited escalating road traffic accidents as the root cause of the intended premium increase, but Government was concerned that the proposed escalations were out of reach for most motorists.
The Fund was born with the ultimate aim of providing “automatic” third party cover through the payment of a fuel levy. The process culminated in the enactment of the Motor Vehicle Insurance Fund Act of 1986.
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