In recognition of the severe impacts of COVID-19 on Fiji’s economy and on families in Fiji, government has included a reduction of the Motor Vehicle Accident Levy by 50% effective from 1st August 2020 to 31st July 2021.
The announcement provides relief to motor vehicle owners for a period of one year as the nation copes with the impacts of COVID-19.
Minister for Economy Aiyaz Sayed-Khaiyum confirmed this at the “New Normal” Symposium organised by the Fiji Commerce & Employers Federation.
ACCF fully supports the decision to significantly reduce the Motor Vehicle Accident Levy as this will certainly ease the financial burden on motor vehicle owners in these difficult times.
Notwithstanding the impact that COVID-19 has on the economy and the nation on the whole, ACCF has continued to receive and process applications for compensation.
To date ACCF has paid over $12 million in compensation for motor vehicle, employment and school accidents and the reduction in the Motor Vehicle Accident Levy will not affect ACCF’s ability to compensate victims of these accidents.
With the passing of the Accident Compensation Act 2017, the Fijian Government brought about the most significant transformation for victims of motor vehicle accidents in the history of Fiji.
The legislation ushered in a Government-funded compensation scheme which enabled the payment of compensation to victims of motor vehicle accidents in Fiji without having to establish fault.
It also removed the need for victims to pursue their claims through protracted and costly legal proceedings.
In the 2018/2019 budget the Minister for Economy, Honourable Aiyaz Sayed-Khaiyum announced the expansion of the compensation scheme to include employment and school accidents.
Funding for the compensation payments comes from the Motor Vehicle Accident Levy that motor vehicle owners pay to the Land Transport Authority and 40% of the 1% FNU Levy paid by employers.
The Motor Vehicle Accident Levy will continue to be payable to the Land Transport Authority.