Is the RAF Paying out Claims? Impact of Lockdown and Backlogs on RAF Claims in 2021

Despite a massive backlog of claims and financial troubles, the Road Accident Fund is indeed paying out claims in 2021.

For road accident victims and their families, the RAF claims process may be subject to long delays. However, it remains the route to follow to secure compensation.

At DSC Attorneys, we’re doing everything in our power to ensure that our clients get the RAF compensation they deserve, as speedily as possible.

Backlog of RAF claims

In a written statement in response to questions in Parliament, Transport Minister Fikile Mbalula said as many as 46,147 RAF claims have been waiting to be settled for more than five years. Of those, 6,933 have been waiting for more than 10 years.

He reported that the total amount claimed is nearly R50 billion.

He added that he doesn’t know how much it will take to settle the claims or when the claims will be finalised. “The date for which the outstanding claims will finally be settled is unknown at this time due to the multitude of variables.”

RAF’s “new model” and 2021 commitment to settle claims

Occupying much media attention in 2020 was the RAF’s decision to stop using panel attorneys. The RAF asserted that this was to reduce its own legal costs and to focus on settling outstanding claims without unnecessary legal challenges.

Early in 2021, CEO Collins Letsoalo reasserted the RAF’s commitment to settling long-overdue claims.

He said, “We have set ourselves to settle these claims within 120 days and that’s exactly what we are doing. We are starting with the oldest claims.”

Letsoalo added that the RAF hopes to rectify the backlog within two years.

Court investigation of the RAF and calls for government intervention

An important court case is currently underway in the Gauteng High Court, with judges being asked to find a solution to the RAF’s problems.

Some lawyers are calling for the Government to intervene in a bid to avoid the RAF’s collapse. They are urging the court to compel government ministers to:

• file financial reports every three months setting out how claims are to be repaid
• present a copy of the RAF’s financial report to Parliament
• provide a report setting out how the Treasury plans to ensure there’s enough money for the RAF to pay claimants.

Closure of RAF offices during lockdown

Delays in processing and paying claims have been compounded by the lockdown.

Under levels five and four of the lockdown, the RAF offices closed completely.  At the same time, non-urgent court cases were postponed.

Bizarrely, the RAF was not declared an essential service – despite the clearly essential role it plays for road accident victims and their families.

Its closure during this period contributed to an already massive backlog.

The RAF offices closed again from 23 December, under the amended lockdown level three. Initially, they were set to reopen after the holiday period, on 14 January. This period was again extended, to 1 February 2021.

The best way forward if you have a RAF claim in 2021

It’s simply not in the best interests of road accident victims to attempt claiming from the RAF without a lawyer.

Some of the key reasons not to claim without representation by a suitably qualified attorney:

• too often, the RAF processes direct claims hastily and without due diligence
• unrepresented claims are often underpaid, with claimants accepting unfairly low settlement offers
• the RAF may unfairly reject a direct claim, leaving the claimant with no legal recourse.

Even with representation, the claims process is complex and time-consuming.

An experienced attorney will help guide claimants through the steps in the claims process, including:

• gathering of evidence, including medical and police reports, any witness statements, details of medical costs, substantiation of loss of income and so on
• submission of the proper RAF claim forms and issuing of legal documents within the prescribed time frames
• gathering of expert medical testimony to support the claim
• if no settlement offer is made within 120 days, issuing of the RAF with a summons and setting of a trial date
• court proceedings
• legal follow-up to secure awarded compensation.

It can take time – in some cases, as long as 180 days – after settlement of your claim for the RAF to pay the awarded amount.

However, your attorney will assist you in holding the RAF liable for interest on any late payments.