Minister: Motor Vehicle Accident Fund soon

Minister of Finance Davendranath Tancoo moving the Second Reading of the Finance Bill, 2025 on December 5 in the House of Representatives. - Photo courtesy Office of the Parliament

FINANCE Minister Davendranath Tancoo said the Motor Vehicle Accident Fund would soon be operationalised and government was currently working on its infrastructure. He believes it should be fully operational within the first quarter of 2026.

During an interview with Newsday on December 7, he said, “A lot of the Finance Bill that we have passed was also to protect the citizens and the People’s National Movement is trying to create the impression that it is a tax on people.”

He said when there was a situation where someone is charged with driving without a licence or insurance coverage, it meant, if they were involved in an accident, the victim had no recourse and nothing to get.

“What we have put in place is a higher tax/penalty for people driving without insurance, overloaded vehicles, driving without a driver’s permit, driving with fake insurance.” He said all of these things were now severely penalised.

“We have put in place an Accident Victims Fund for people who would have been a victim of an accident where someone did not have insurance coverage, which is what the other fines are identified for. If you did not have insurance coverage, you have a recourse,” he said.

The fund was started in 2008.

It was further developed during Prime Minister Kamla Persad-Bissessar’s first government in 2010-2015. There were plans to have it operationalised in 2014. In 2015, the Cabinet approved the establishment of the fund with $20 million as a start-up funding.

Last year, Arrive Alive president Sharon Inglefield called on the Finance Ministry to explain the status of the fund, which she then claimed held $1 billion. There were some legal challenges by the Motor Insurance Bureau Association.

Tancoo said the only people who had to fear the increased fines were those who broke the law.

He said the PNM voted against this and added that the party felt there should not be increased penalties for those who broke the law.

“As far as I am concerned, the PNM is encouraging the violation of the law, the breaking of the law. In every single time we have raised issues to protect citizens against crime, criminals, the PNM have continued to support and endorse it.

“They have never supported the Government in anti-crime measures,” he said.

He added that the measures were meant to encourage people to pay their fees as well as not to break the law.

“In both instances, we are trying to protect vehicle users and the travelling and motoring public. We are trying to encourage people to pay their fees, not to break the law. In the event that people break the law, we have penalties and a resource for the victim of the offence.”

During the 2025/2026 budget presentation, Tancoo announced the funds operationalisation and also announced increased traffic fines for dangerous driving, driving under the influence, and driving while disqualified.

The Finance Bill which was passed late on December 5.