Cronin welcomes accident fund ruling

Johannesburg – The department of transport on Thursday welcomed the Constitutional Court ruling putting a cap on compensation claims by road accident victims.

Deputy Transport Minister Jeremy Cronin said the Constitutional Court on Thursday upheld the constitutionality of a provision in the Road Accident Fund (RAF) Amendment Act which abolished accident victims' common law right to claim compensation for losses not compensable under the act.
 
Cronin also said the court ruled that the provision limiting the amount of compensation that the Road Accident Fund is obliged to pay for claims of loss of support is constitutional.
 
The court dismissed the appeal by the Law Society of South Africa, the South African Association of Personal Injury Lawyers and others.
 
"The court held that the abolition of the common law right to claim compensation is a justifiable limitation of that right," he said.
 
"The court stated that the abolition of the common law right is a necessary and rational part of an interim legislative scheme whose main purpose is to achieve the delivery of a social security service that is financially viable."
 
Cronin said the court held that the cap on compensation for the loss of income and loss of support was constitutionally sound.
 
"These rulings will also help to close loopholes through which a disproportionate amount of the RAF's compensation ends up in legal
professional fees and not with accident victims," Cronin said.