Time to replace RAF's lump sum payments
The Road Accident Fund (RAF) is technically insolvent.
Efforts have been made to replace the current system that has been branded as ‘unworkable, unsustainable and corrupt’ with a no-fault based scheme, where compensation would be disbursed monthly to the road accident victims.
The University of Johannesburg’s law Professor Letlhokwa Mpedi says a law allowing for the creation of such a scheme – the Road Accident Benefit Scheme Bill – was rejected by the National Assembly in September 2020.
Writing on the Daily Maverick site, Mpedi says despite the rejection of the Bill, it is ‘abundantly’ clear that something is ‘fundamentally’ wrong with the present system and that something has to be done.
‘It is indeed untenable that the lump sum payment meant to support victims of road accidents to cope with, for example, past and/or future loss of income and medical expenses is usually recklessly spent – overnight. Such beneficiaries invariably end up relying on the tax-financed social assistance benefits such as the disability grant and old-age grant. It is important that victims of road accidents are adequately informed about the purpose of the compensation.’
Mpedi says to minimise the abuse and subsequent destitution, compensation must be provided as a monthly benefit to the victims or survivors. However, he notes that it will take willpower to introduce such a system.
‘The truth of the matter is that there are many interested parties (such as legal practitioners and health professionals) who – apart from the victims and survivors – handsomely benefit from the RAF system.’
Mpedi says attempts to improve the system should be informed by the need to provide a safety net to road accident victims – and not the bottom line of those who make a living by rendering professional services to the victims.
He adds: ‘Policymakers must protect myopic road accident victims or survivors, even if it means protecting them against themselves. SA is urgently in need of a redesigned system that is sustainable and effective.’
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
