# Road Accident Fund

- Link: https://dearsouthafrica.co.za/road-accident-fund/
- Published: 2023-09-10T09:54:54+02:00
- Author: dearSA

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### The Department of Transport published the Road Accident Fund Amendment Draft Bill 2023 for public comment.

### **19365 **comments delivered to parliament

Scroll down to view a summary

[view a report and all public comments ](https://dearsouthafrica.co.za/road-accident-fund/summary)

## Have your say – shape the RAF Amendment. [CLOSED]

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Dear South Africa founder, Rob Hutchinson joins The Burning Platform team on Cliff
Central to discuss the latest coming out of the Road Accident Fund … and more.

### SUMMARY OF THE ROAD ACCIDENT FUND AMENDMENT BILL 2023

provided by;

![](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2023/09/14100450/logo-stack.
jpg "logo-stack")

### On 8 September 2023 the Department of Transport published a draft Road Accident Fund Amendment Bill 2023. The last effective day for public comment is Friday 6 October 2023.

If the draft bill becomes law, the rights of all drivers, passengers and pedestrians
to claim compensation for injuries they suffer in a motor vehicle accident will 
be taken away. In its place will be significantly curtailed “social benefits”.

In effect only very limited benefits will be paid and the changes amount to a drastic
restriction of existing rights which will affect all South Africans (especially 
the poorest persons). Some of the most important restrictions on existing rights
are:

 1.  a. **Loss of earnings
         
        Currently, a claim for loss of income is paid out in a lump
        sum. Under the new system claimants will receive annuity (partial) payments that
        will eventually equal the lump sum. There is also the qualification that the amount
        payable is subject to periodic review of the Fund’s liabilities. If a claimant
        dies before the full annuities are received the payments will stop and their heirs
        will inherit nothing.
     b. **Pain and suffering
         
        Claimants will no longer receive compensation for pain,
        suffering, disfigurement and shock as this category of damage will be totally 
        abolished.
     c. **Exclusion from compensation**
     d.  a. Currently a claimant is covered for the negligent driving of a motor vehicle 
            irrespective of where it is driven. Under the new system the accident must have
            taken place on a public road. Injuries suffered in motor vehicle accidents in
            parking areas, sports fields, farm roads, driveways, private estates, game reserves
            or any other private road will not be covered.
         b. Pedestrians crossing a highway are also specifically excluded.
         c. Claimants will not be covered if hit by an unidentified vehicle. Under the present
            system, so-called “hit and run” incidents are compensated.
         d. Presently anyone, regardless of nationality, who is injured by a motor vehicle
            in South Africa is covered.
         e. The proposed changes also specifically exclude from compensation any driver, 
            pedestrian or cyclist over the legally prescribed alcohol limit, regardless of
            who was at fault, as well as their dependents should they be killed. It is also
            probable that this section will be interpreted to mean that passengers of persons
            who have drunk alcohol will also be excluded. Importantly, the RAF will be able
            to recover expenditure from persons who have drunk alcohol even if they did not
            cause the accident that they were involved in.
         f. Other exclusions from compensation include, for example, cases where there may
            be a product liability claim, persons injured whilst filming a movie or advertisement
            and passengers who may be covered by the operator’s passenger liability insurance–
            despite the fact that that cover may be very limited.
     e. **Medical expenses
         
        There will be no reimbursement of expenses covered by medical
        aid/insurance. This will drastically increase premiums with dire consequences 
        for all medical aid members. The proposed amendments also bans compensation for
        any person who is not a South African citizen or direct permanent resident.Unlike
        the current dispensation, all future medical claims will have to be pre-authorised
        by the RAF or they will not be paid.
     f. **Claims against the person who caused the accident
         
        Although the changes drastically
        restrict the right of accident victims to claim compensation it does not allow
        innocent victims to sue the wrongdoer for damages not recovered from the RAF.

The Bill  seeks to

    - amend the Road Accident Fund Act (“the Act”), 1996 as amended, so as to delete
      definitions and insert new definitions;
    - clarify the nature of the Fund;
    - give effect to the findings and recommendations of the Road Accident Fund 
      Commission;
    - reorganise the powers and functions of the Fund;
    - repeal the Fund’s authority to appoint agents to administer claims;
    - amend the constitution of the Board by including the Chief Executive Officer
      as an executive member of the Board;
    - simplify the Act by moving procedural and administrative matters to the regulations
      and Board Notices; to limit the liability of the Fund to motor vehicle accidents
      occurring on public roads;
    - remove the obligation for the Fund to compensate a third party for non-pecuniary
      loss;
    - provide for the provision by the Fund of injury and death benefits subject
      to prescribed limits and periodical review;
    - clarify exclusions of liability of the Fund; to extend the period before interest
      accrues on an award;
    - remove the right of suppliers to claim from the Fund;
    - provide for the further exclusion of the Fund’s liability in respect of specific
      third parties and specific situations;
    - harmonise the prescription regime for all claims;
    - enable the lodgement of claims by digital form;
    - authorise the Board to stipulate terms and conditions for administrative claim
      processes and claim forms;
    - provide for dispute resolution mechanisms and the establishment of the Office
      of Road Accident Fund Adjudicator to dispose of complaints by the third party
      in relation to the claims;
    - restructure the Minister’s powers to make regulations;
    - empower the Fund to make annuity payments for claims and to monitor and re-
      assess active claims;
    - allow for lodgement of claims, on behalf of the claimants by other functionaries;
    - make provisions to ensure compliance with Protection of Personal Information
      Act, 2013;
    - amend the financial control provisions and align them to the Financial Sector
      Regulation Act, 2017;
    - align the financial reporting requirements to the provisions of the Public
      Finance Management Act, 1999;
    - enhance information submission provision requirements;
    - align the provisions of the Act to case law; and, to provide for matters connected
      therewith.

Various stakeholders within the legal fraternity say the Road Accident Fund is in
chaos. They have called on government to urgently intervene in what they have described
as the deteriorating situation at the fund. The stakeholders have cited long queues,
unprocessed claims and badly administered settlements. To discuss this further we
are joined by Road Accident Fund CEO, Collins Letsoalo.

[View more info ](https://dearsouthafrica.co.za/road-accident-fund/summary/)
