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Cape Town - The Road Accident Fund (RAF) wants sweeping changes made to laws governing payouts to accident victims.
RAF chief operating officer Andre Gernandt told parliament's portfolio committee on transport on Wednesday that new laws were necessary to prevent attorneys from holding back on payouts and running up legal costs.
"Two years ago we lost a case in the Cape High Court when we wanted to implement a system where we could pay the compensation directly to the claimants," Gernandt said.
"The high court stopped us. What we want with that one is the right to pay compensation directly to the accident victim and the legal cost to the attorney."
Gernandt said the RAF currently paid everything to lawyers who held back the money "sometimes for months".
Attorneys were taking "three or four million" rand or 25 to 30% of the lump sum. It would be preferable to see payments done in instalments instead, he said.
Gernandt also wants MPs to draft a law that will specify a list of documents attorneys must give to the fund, so that claims can be settled within 120 days.
"What happens is before 120 days the attorneys give minimum information, and then on the 121st day they summons us, and from there they start running up legal costs."
Mandla Mvelose, the acting chief executive of the Road Traffic Management Corporation, said the lack of an accident database was "a huge problem".
The fund was unable to know how many accidents had occurred and was therefore unable to estimate its future liability.
The RAF, he said, needed assistance to develop an effective database to limit the incidence of fraud.
He said the backlog of RAF claims had fallen from 500 000 to 250 000 but that courts were still clogged with RAF cases.
More than 95% of the RAF's claims were processed through courts, he said.
The cases often required "a battery of experts", such as actuaries, therapists and medical experts, which the country did not have.
Some 40% of all court cases in South Africa were RAF cases, he said.
Claims were allowed to be amended right up to date of case. That added to the challenge, he said.
RAF chief operating officer Andre Gernandt told parliament's portfolio committee on transport on Wednesday that new laws were necessary to prevent attorneys from holding back on payouts and running up legal costs.
"Two years ago we lost a case in the Cape High Court when we wanted to implement a system where we could pay the compensation directly to the claimants," Gernandt said.
"The high court stopped us. What we want with that one is the right to pay compensation directly to the accident victim and the legal cost to the attorney."
Gernandt said the RAF currently paid everything to lawyers who held back the money "sometimes for months".
Attorneys were taking "three or four million" rand or 25 to 30% of the lump sum. It would be preferable to see payments done in instalments instead, he said.
Gernandt also wants MPs to draft a law that will specify a list of documents attorneys must give to the fund, so that claims can be settled within 120 days.
"What happens is before 120 days the attorneys give minimum information, and then on the 121st day they summons us, and from there they start running up legal costs."
Mandla Mvelose, the acting chief executive of the Road Traffic Management Corporation, said the lack of an accident database was "a huge problem".
The fund was unable to know how many accidents had occurred and was therefore unable to estimate its future liability.
The RAF, he said, needed assistance to develop an effective database to limit the incidence of fraud.
He said the backlog of RAF claims had fallen from 500 000 to 250 000 but that courts were still clogged with RAF cases.
More than 95% of the RAF's claims were processed through courts, he said.
The cases often required "a battery of experts", such as actuaries, therapists and medical experts, which the country did not have.
Some 40% of all court cases in South Africa were RAF cases, he said.
Claims were allowed to be amended right up to date of case. That added to the challenge, he said.
