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MVA fund loses N$847 406.65 in fraudulent claims

MVA fund loses N$847 406.65 in fraudulent claims

Business Reporter

OVER the past five years, the Motor Vehicle Accident Fund of Namibia (MVA) has detected nine suspected fraudulent claims valued at N$3.6 million, but the actual loss amounts to N$847 406.65.

The Chief Executive Officer of the MVA Fund, Rosalia Martins-Hausiku, revealed that these fraudulent claims stem from nine cases, of which four have been reported to the Namibian police, and the other five are now also ready to be reported after preliminary internal investigations.

A total of N$218.7 million was paid out for Medical Service Provider claims.

Martins-Hausiku explained that out of the N$3.6 million exposure, the fund was able to save N$2.7 million through its internal detection mechanisms, which would have otherwise been paid out if these cases hadn’t been detected. The fund further recovered N$48 000.00 of the actual loss.

“A claims environment like the one the fund operates in, dealing with monetary payouts, is always susceptible to fraud. Historically, fraudsters were particularly attracted to cash grants, especially injury grants, as well as payments for loss of income and loss of support. However, due to the fund’s commitment to providing prompt treatment (the golden hour, so to save lives), we have witnessed a surge in medical-related fraud due to tampering with crash scene evidence,” Martins-Hausiku said.

She added that over the years, the fund has invested in detection mechanisms through various risk mitigating strategies, including capacity building and the claims management system, which has significantly reduced fraudulent activities after payment.

The majority of cases are detected upon submission and halted.

The fund also noted a significant decrease in crashes and fatalities, with 3,048 crashes reported in 2021, while 3,072 crashes were reported in 2022. In terms of fatalities, the number of people who died on Namibian roads dropped from 552 in 2021 to 466 in 2022.

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