ROAD ACCIDENT FUND: AN OVERVIEW

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ROAD ACCIDENT FUNDAN OVERVIEW

• DEPARTMENT OF TRANSPORT

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CONTENTS OF PRESENTATION

• Challenges addressed
• Road accidents in South Africa
• Claims against the RAF
• Trends in RAF compensation payments
• Transaction costs
• Fuel levy and RAF income
• Object of the Bill
• Key amendments
• Questions raised on 1 June 2005
• Finalisation

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SYSTEM OF ROAD ACCIDENT COMPENSATION A
CONCEPTUAL FRAMEWORK
Number of vehiclesKilometres travelled
Fuel sales
Fuel levy
Road accidents
Road accident victims
RAF Income
Compensation expenditure
Cost expenditure
RAF
Legal profession
Service providers
Regulatory environment
Other role players
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ROAD ACCIDENTS IN SOUTH AFRICA
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GROWTH IN VEHICLE POPULATION IN SOUTH AFRICA
1990 - 2003
Average annual growth 4
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GROWTH IN ROAD ACCIDENTS IN SOUTH AFRICA
Average annual growth 2.6
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GROWTH IN ACCIDENTS IN SOUTH AFRICA 1990 - 2003
Average annual growth 3.2
Average annual growth 2.6
Average annual growth 0.8
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PEOPLE INJURED IN ACCIDENTS IN SOUTH AFRICA 1990
- 2003
Average annual growth 3.2
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CLAIMS AGAINST THE RAF
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ACCIDENTS AND ACCIDENT CLAIMS LODGED WITH RAF
Average annual growth 2.6
Average annual growth 7.3
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INJURED PERSONS AND INDIVIDUAL CLAIMS LODGED WITH
THE RAF1993 - 2003
Supplier claims included in RAF claims
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CASUALTIES PER CASUALTY ACCIDENT AND RAF CLAIMS
LODGED PER ACCIDENT
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INJURIES OF VICTIMS COMPENSATED BY THE RAF
1999-2001
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HOSPITALISATION OF VICTIMS COMPENSATED BY THE
RAF 1999-2001
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TRENDS IN RAF COMPENSATION PAYMENTS
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TOTAL COMPENSATION PAID 2000 - 2004

2000 2001 2002 2003 2004
Total compensation R 000 R 000 R 000 R 000 R 000
Total compensation R 1,375,589 R 1,386,026 R 2,025,876 R 2,411,795 R 3,034,512
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COMPENSATION PER HEADS OF DAMAGES 2000 - 2004
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PERCENTAGE OF AMOUNT CLAIMED PAID
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REAL ECONOMIC LOSS AND NON-ECONOMIC LOSS PAID BY
THE RAF 2000 - 2004
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DISTRIBUTION OF COMPENSATION BY THE RAF UNDER THE
HEADS OF DAMAGES
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DRIVERS OF COMPENSATION GENERAL DAMAGES
General Damages Claims finalised in 2000 2001 2002 2003 2004
Average amount (nominal) R 11,744 R 12,656 R 12,164 R 12,532 R 14,216
Average Amount (2004 values) R 15,110 R 15,453 R 14,051 R 13,259 R 14,216
Number of claims that received General Damages 56385 55698 68460 71250 91386
Claims that Received GD as of claims finalised 67 68 67 65 59
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DRIVERS OF COMPENSATIONFUTURE LOSS OF EARNINGS
Future loss of Earnings Claims finalised in 2000 2001 2002 2003 2004
Average amount (nominal) R 74,017 R 87,200 R 97,865 R 136,256 R 183,625
Average Amount (2004 values) R 95,231 R 106,471 R 113,049 R 144,167 R 183,625
Number of claims that received Future Loss of Earnings 3330 2715 2835 2449 3281
Claims that received Future Loss of Earnings as of claims finalised 4 3 3 2 2
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COSTS
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TRENDS IN LEGAL COSTS PAID BY THE RAF 2000 - 2004
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LEGAL COSTS COMPARED TO COMPENSATION PAID
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FUEL LEVY AND RAF INCOME
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INCOME FROM FUEL LEVY 2000 - 2004
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INCOME AND EXPENDITURE
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RAF AMENDMENT BILL
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Object of Bill

• To limit the liability of the Fund
• To provide a system of compensation which is more
  equitable, fair and transparent whilst allowing
  for good governance.

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Key Amendments

• Governance
• Removal of limitations on passengers
• Introduction of limitation on loss of income and
  support claims (R160k)
• Limit the Funds liability for general damages
  only for seriously injured citizens or permanent
  residents
• Introduce medical tariffs
• Allow for no-fault emergency medical treatment
• Remove liability for emotional shock claims from
  secondary victims

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Questions raised at previous meeting

• Questions from previous briefing
• Rule of Law Constitutionality of specific
  limitations
• Tariff for legal work Taxed party-to-party
• Legal practice Law Society SA
• Assessment Accreditation such that rural clinics
  could provide assessment services
• Funeral costs removed
• Support claims relating to accidents on farms
  despite rebate any accident anywhere in SA is
  covered
• Backlog Not addressed in Bill directly provision
  for outsourcing may increase efficiency

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Finalisation of Bill

• Constitutional Opinion, Adv Wim Trengove
• Replacement of common law rights with statutory
  rights without allowing access to the common law
  will succeed in a constitutional challenge as
  long as the specific limitation are found to be
  constitutional.
• Second opinion due for next committee meeting on
  6th September.
• Comments of the Board of the RAF being considered
  for inclusion.
• THANK YOU
• Marissa du Toit
• Department of Transport