oa De Rebus - Some observations on the RAF Amendment Act

Volume 2006, Issue 458
  • ISSN : 0250-0329



I have noted the provisions to curtail the benefits enjoyed by victims of road accidents in terms of the Road Accident Fund Act (RAF) 56 of 1996 by the promulgation of the Road Accident Fund Amendment Act 19 of 2005. My concern is that the proposals are directed at the wrong end of the RAF's expenditure. The RAF Commission under the chairmanship of Judge Kathy Satchwell has found that approximately 40% to 55% of each rand of fuel levy is spent by the RAF on evaluating claims and on administration. These figures are based on information for the period 2000 to 2002. This figure does not take into account the attorney-and-client fee charged by the claimant's own attorney. It follows that the actions - or even inaction - of the RAF that may adversely influence this already unfavourable ratio of costs in relation to compensation actually delivered should be closely monitored and effective steps taken to rectify any deficiencies in the claims-handl1ing process, before one resorts to the drastic step of reducing road accident victim benefits.

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