MASERU – THE Constitutional Court on Tuesday threw out a case in which three individuals wanted certain sections of the Motor Vehicle Insurance Order to be declared null and void.
Justice ’Mafelile Ralebese ruled, in chambers, that the applicants lacked locus standi.
The court reserved reasons to a future time.
The applicants were Thabelang Moeketsi, Limakatso Taaso and Molahloe Mosola while the respondents were the Lesotho National Insurance Company (LNIC), Minister of Finance and three others.
Through their lawyer Attorney Lineo ’Masalome Lephatsa, the applicants told the court that section 8 of the Motor Vehicle Insurance Order was discriminatory.
The applicants told a panel of three judges, Justices Molefi Makara, Moneuoa Kopo and Ralebese, that the section is inconsistent with section 18 and 19 of the Constitution.
They said the law unfairly discriminates against passengers and victims of motor vehicle accidents.
Attorney Lephatsa said under the Motor Vehicle Insurance Order of 1989, victims of a road accident can only share a total of M60 000 as compensation no matter how many people were involved in the accident.
The highest figure a person can get as compensation for injury or death is set at a maximum of M12 000, an amount Adv Lephatsa said was unfair.
“(The Act) does not care if it is a bus or not,” she said.
“It does not care if the survivor is confined to a wheelchair or not.”
She told the court that the section is unfair as some passengers may sustain serious injuries.
Attorney Lephatsa told the court that the claim should also be declared insufficient and invalid adding that the court should remove limitation of liability on the quantum.
The court further heard that the respondents should be ordered to re-compute the formula.
Attorney Lephatsa argued that the limited liability in the sums of M60 000 covering the whole accident victims and a maximum sum of M12 000 to individuals as compensation should be revised so that it is in line with current inflationary trends and the cost of living.
The court heard that Moeketsi and Taaso were in the same vehicle when it was involved in an accident in Mafeteng in 2018.
The accident, the court heard, occurred when the insured driver was trying to avoid a collision with another vehicle.
In his founding affidavit, Moeketsi said he had lodged a motor vehicle accident claim with the LNIG and also instituted an action in the High Court for a third party claim against the LNIG and the insured driver.
“This matter is still pending in the High Court,” Moeketsi said.
He said he had also learned that Mosola was also involved in a motor vehicle accident in April 2018 at or along Roma Public Road.
The LNIG Chief Executive Officer, Mpho Vumbukani, in his founding affidavit told the court that his company was running at a loss in administering the scheme for individuals who were involved in motor vehicle accidents in 2023.
Vumbukani said the premium that was paid by the State to the LNIG did not cover the amounts it had to pay out to claimants under the order.
As a result, the LNIG requested the Minister of Finance to increase the premium from M15 million to M25 million for 2024.
Vumbukani said the premium paid by the government to his company had remained stagnant at M15 million for many years.
“The increase is thus not only long overdue but urgently required in order for the scheme to be sustainable,” he said.
Advocate Paul Farlam representing the LNIG told the court that the applicants were not covered under section 8.
Staff Reporter
