What should you know about the road accident fund?

The more cars on the road the higher the incidence of accidents – that's simple arithmetic. But the more accidents, the more claims against the Road Accident Fund, and the more difficult it becomes to cover all the claims with the available funds.

The Road Accident Fund (RAF) is currently financed by means of a levy on fuel, but due to the rapid increase in the number of claims lodged with the RAF, the levy is no longer adequate. However, battle weary consumers who are already struggling to cope with an exorbitant fuel price cannot afford yet another increase in the levy. The only other option is to amend the Road Accident Fund Act, and the amendments came into effect on 1 August 2008.

What's new in the Act?

• Passengers need no longer restrict their claims to a maximum limit of R25,000.
• As from 1 August 2008, passengers conveyed on motorcycles may also claim from the RAF.
• Eyewitnesses can no longer claim compensation from the RAF for trauma or emotional shock as in the past, but they may lodge a civil claim against the guilty party.
• The maximum amount that a claimant may claim in respect of loss of earnings, loss of maintenance or support arising from the death of the breadwinner, has been fixed on R160,000 per annum. Claimants can also no longer lodge a claim against the guilty party, but this stipulation is expected to be challenged in the courts.
• Should the RAF's settlement be accepted, no further claims may be lodged.
• In cases where the injured party is liable for the maintenance of the driver of the vehicle or is a member of the same household as the driver, the injured party may now also lodge a claim with the RAF.
• A clear distinction is made between serious and minor injuries. Compensation for serious injuries is calculated at a higher rate and minor injuries at a lower rate. (A serious injury is defined as an injury which results in 30% or more overall impairment of the person.)

If you are involved in an accident and you need more information about the RAF, phone Leon Scott at MacRobert Attorneys on 012 425 3535 or 083 459 5002 for expert advice.