RAF in trouble unless bill halts claims

2012-07-25 09:04

The Road Accident Fund (RAF) is under pressure to find ways to fund thousands of road accident victims, who as passengers in taxis where the driver was at fault, were limited to compensation of no more than R25 000.

The Constitutional Court ruled that this is inequitable and unfair.

According to Business Report, the National Assembly’s transport portfolio committee on Monday considered the RAF (transitional provisions) bill that seeks to provide interim measures in dealing with claims that were limited until 2008.

If the law is not changed, the fund could face unlimited claims that could come to R2.2 billion.

However, if claims were limited this could be reduced to R1.3 billion, a department of transport legal adviser is quoted as saying.

The RAF has a backlog of claims estimated at well over R42 billion.

Newly-appointed Transport Minister Ben Martins said in reply to a parliamentary question that 250 000 claims to the RAF remained either unpaid or unresolved.

Earlier this year, RAF chief operating officer Andre Gernandt told Parliament’s portfolio committee on transport that new laws were necessary to prevent attorneys from holding back on pay-outs and running up legal costs.

He said the RAF currently paid everything to lawyers who held back the money “sometimes for months”.

Attorneys were taking “R3 million to R4 million” or 25% to 30% of the lump sum. It would be preferable to see payments done in instalments instead, Gernandt said.

Gernandt also said he wanted MPs to draft a law that will specify a list of documents attorneys must give to the fund, so that claims can be settled within 120 days.

The transport portfolio committee decided to meet again next week to finalise the bill.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.