RAF cap 'irrational'

2010-08-12 18:21

Johannesburg - A damages cap set at R160 000 from the Road Accident Fund (RAF) was "irrational" and infringed on the rights of the victims of road accidents, the Constitutional Court heard on Thursday.

Counsel Geoff Budlender said that the cap "causes enormous effect for all for a 2% saving of the fund".

He said that the compensation which the RAF would be saving only amounted to 2% of its expenses.

However deputy chief justice Dikgang Moseneke questioned whether it is in the interests of South Africans to cap the fund if it meant keeping it viable for a longer period of time.

He said: "Is it a higher purpose to make the funds available, to make it available to all South Africans for as long as possible?"

"Absolutely deputy chief justice," said Budlender.

However Budlender said that Parliament had infringed on the rights of victims by preventing them from seeking damages against individuals as part of the RAF legislation.

He said that in 50% of the cases a wrongdoer was insured and therefore claiming damages was a possibility.