The Road Accident Fund (RAF) has increased the limit on its claims payout to keep up with the local rate of inflation.
South Africans will now be able to claim a maximum of R347,730 compared to the R342,336 it was adjusted to in April 2023.
The maximum amount citizens can claim from the RAF is adjusted every financial quarter in line with inflation. The latest adjustments were gazetted on Friday, 28 July, and will come into effect from Monday, 31 July.
What you can claim for
The RAF is a nationwide fund that can be instituted to recover compensation on behalf of any person who has suffered damage as a result of bodily injury sustained in a motor vehicle collision.
The claim limit is currently imposed on claims relating to a loss of income or support due to a road accident in South Africa, according to BusinessTech.
This relates to cases where a family’s breadwinner is severely injured or killed in a vehicle-related accident, where the surviving spouse or children of the person can claim compensation from the RAF for the resulting loss of income.
However, drivers and passengers are still able to claim for all medical expenses arising from an injury with no cap, provided that the injury was sustained in the accident and was not a pre-existing condition at the time of the incident.
If a minor is injured, the parent or guardian would be the claimant in regards to having their medical treatment paid for.
This coverage is afforded to all road users, including motor vehicle drivers and passengers, motorbike users, cyclists, and pedestrians.
Issues with the RAF
The Road Accident Fund has recently drawn criticism from legal bodies, who claim that it is failing its basic mandate.
According to EWN, 10 different organizations have drafted a joint memorandum against the RAF, saying that its many delays and growing backlog of claims are causing harm to victims of road accidents in the country.
One authority, GroundUP, said the RAF’s decision to do away with the panels of attorneys that previously investigated claims and managed litigation and settlements had proven disastrous.
Instead, the state-funded entity now uses state attorneys for representation, which the memorandum says has resulted in wasteful expenditure and unnecessary delays.
The memorandum also criticizes the RAF for the following:
- Reverting a policy that would cover foreign nationals even if they can’t prove they are in South Africa legally
- “Habitually failing to timeously make payment” – forcing sheriffs of the court to enforce orders against the fund
- Refusing to pay if the victim’s medical aid has already paid, meaning the victim may lose out on medical benefits
- RAF staff remaining on paid suspensions despite a ruling by the Commission for Conciliation, Mediation, and Arbitration
- Introducing new claim requirements that have led to many rejected claims, despite the Eastern Cape High Court ruling that this should be suspended
Other stakeholders have taken fire at the RAF’s funding, which is derived from taxes and levies placed on every litre of fuel in the country.
Combined with the General Fuel Levy (GFL), these taxes collectively raise the price of petrol and diesel by roughly 25%, leading to a higher cost for all goods and services that rely on the transport sector in South Africa.
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