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Minister apologises for delay in road accident payments

Cape Town - Minister of Transport Dipuo Peters, apologised on Friday to the claimants, service providers, stakeholders and caregivers who are affected by the delays in payment following the attachment of the Road Accident Fund's (RAF’s) bank account by the Sheriff of the Court.  

Peters finds the attachment of the RAF’s bank account by the Sheriff of the Court unfortunate and regrettable, because the action denies the claimants access to their much needed financial relief from government, she said in a statement.

Peters has directed that the RAF keeps those affected informed and abreast with the status quo and ensure that normality is restored urgently.

While the government is planning to introduce the Road Accident Benefit Scheme (RABS), the RAF introduced the Cash Management Plan which was put in place two years ago to maintain regular payment. The implementation of the RAF cash management plan was disrupted by the few legal firms who intended to ensure that their claims are prioritised over those who have patiently been waiting for payment.

The attachment has adversely impacted the RAF as an institution, disrupting its efforts to honour all its obligations ensuring that it continues to fulfil its mandate to indemnify, compensate and rehabilitate vehicle crash victims.

The current scheme administered by the RAF is subjected to fraud, opportunistic and over-inflated claims, professional malpractice and human failing, according to the statement. This is among the many reasons that led to government’s introduction of the RABS, a no-fault scheme, which will create a new era of socio-economic balance and also remove the unintended negative consequences and financial burden on the families of the wrongdoer.

RABS is intended to replace the current fault-based system administered by the RAF, which often results in extensive and costly litigation, prolonged claims finalisation and high administrative costs.  Under RABS, fault will not be considered on the part of the claimant or other persons involved in the road accident. The focus will essentially be on how the claimant is immediately assisted.   

In terms of the scheme, payments will be made directly to claimants, medical and healthcare service providers. Funded by the fuel levy, RABS will provide benefits for medical expenses, income support, family support and funeral benefits.

Claimants will be able to claim from the Scheme, while the scheme’s administrator (RABSA) will assess claims for benefits and pay beneficiaries in terms of the Act.   The removal of fault and the provision for defined benefits further limit room for disputes and associated legal costs that would otherwise have been incurred.

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