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Budget 2020-21

Reduction in Motor Vehicle Accident Levy will not affect compensation

July 19, 2020 3:25 pm
The Accident Compensation Commission says the reduction in the Motor Vehicle Accident Levy will not affect their ability to compensate accident victims. [File Photo]

The Accident Compensation Commission says the reduction in the Motor Vehicle Accident Levy will not affect their ability to compensate accident victims.

Minister for Economy Aiyaz Sayed-Khaiyum announced a reduction of the Motor Vehicle Accident Levy by 50% effective from 1 st August to 31st July 2021 to provide relief to motor vehicle owners for a period of one year as the nation copes with the impacts of COVID-19

In a statement, ACCF says they fully support the decision to significantly reduce the Motor Vehicle Accident Levy as this will certainly ease the financial burden on motor vehicle owners in this difficult time.

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ACCF says they continue to receive and process applications for compensation.

To date, ACCF has paid over $12 million in compensation for motor vehicle, employment and school accidents.

ACCF says 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.

 

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