The Road Accident Fund (RAF) has long been a subject of scrutiny and criticism in South Africa. Time and again, it has faced challenges in fulfilling its responsibilities to those affected by road accidents. Now, in light of these issues, the Department of Transport introduced the draft RAF Amendment Bill, 2023.
The draft bill, made public in August 2023, aims to alter the RAF’s future operations.
The public has less than a month to add their voice to these amendments.
Overall, the draft suggests moving away from the current system, which compensates victims based on the actual damages suffered to a “structured benefit” structure.
The amendment Bill represents a watered-down version of the RABS Bill which was rejected in its entirety in August 2017.
Instead of compensating for actual damages, the RAF would cater for a structured benefit that will be paid in the form of an annuity, rather than a one-time “lump sum” payment.
How does compensation under the proposed Amendment compare with the current RAF system of compensation?
The current RAF system of compensation is common law based which means that each individual enjoys the same rights under the Act. The aim of the current RAF Act is to provide the widest possible cover for all road crash victims.
The RAF indemnifies the wrongdoer and fully compensates the seriously injured victim.
Amendment Bill provides a limited structured benefit which is not aimed at full compensation.
| RAF | RAF Amendment Act |
|---|---|
| Indemnity and insurance based | Social benefit scheme |
| Provides lump sum compensation | Provides reviewable structured payments |
| Allows for career pathing | No career pathing considered (possibly) |
| Allows for general damages | No general damages |
| Settlement form part of estate | Benefits forfeited upon death of the beneficiary |
