What is the Road Accident Fund (RAF)?

What is the Road Accident Fund?

The National Road Accident Fund (RAF) is established to compensate you, as road accident victim, in the event that you sustained personal injuries or suffered loss in the event of death, caused by the wrongdoing of another driver.

The road and accident fund is financed by compulsory fuel levies deducted from each and every individual in South Africa. This is either directly by drivers filling up their vehicles or indirectly by passengers paying for transport. This means that every single person in our country is involuntarily paying a levy in return for insurance cover.

The problem with road accidents funds

Over the last couple of years there have been many complaints about the RAF and its lack of administration of the available funds. Thousands of claims prescribe in the hands of the Fund and are still unresolved.

The Fund pleads poverty yet the CEO of the Fund earns R 6,4 million per year (more than our President) and has just received an annual bonus of over R 1.8 million.

  • Actual value of past and future medical costs
  • Actuarially calculated past and future loss of income or support up to a maximum of R228 430 p.a.
  • General Damages for pain and suffering for severely injured victims.
  • Actual funeral expenses in the event of death
  • Health care benefits payable in accordance with specified tariffs determined by the Minister of Transport.
  • Income and family support benefits to be determined by the Minister of Transport
  • Funeral benefits up to a maximum of R10 000 only

Money is wasted on Roadshows and botched tenders leaving the road accident victims having to wait moths to receive their compensation.

The RAF further appointed panel attorneys being paid to do their in-house work, as staff is incapable of effectively administering claims.

RABS is a third attempt by government to try and resolve the sustainability of the Fund and provide you with only limited structured payments rather than full compensation.

RABS is purportedly deemed to be reasonable, equitable, affordable and sustainable replacement to the RAF as part of a social benefit to victims of road accidents.

Why the national road accident fund isn’t working

We agree there is a need to simplify the current process but RABS in its current format is not a just replacement for a system that has been trial and tested over 60 years.

The fact that RABS is not aimed at full compensation should already alarm us to the fact that victims will be worse off than they currently are – why should we settle for anything less than the best, we are all paying for it after all?

You need to clearly understand what is being proposed before the legislation gets passed as you still have a voice and have the power to stop it.

Stop RABS.

For more information about our work relating to the road accident fund, contact us today. We also encourage you to sign our petition today.