road accident fund payouts

The Road Accident Fund (RAF) continues to face administrative and financial challenges, and claiming from the fund is a time-consuming process. Nonetheless, recent RAF payouts illustrate how valuable successful claims can be.

Payouts from the RAF can make a dramatic difference to the lives of those injured by road accidents, and their families.

Note that for the best chance of securing a RAF payout that’s fair, it’s vital to use the services of a suitably qualified attorney.

In this article, we cover:

RAF annual report: claim payouts

The Road Accident Fund’s annual report provides an overview of the RAF’s current status, financial statements and feedback on management and governance for the financial year.

The RAF’s 2023/2024 annual report sheds light on recent RAF payouts.

According to the report, the average claim value increased by 9.54% in the 2023/2024 financial year, compared to the previous year. The average settlement value reported was R287,000 per claim.

Total claims received by the RAF decreased slightly from the preceding year, to R45.1 billion.

The average values of specific RAF claim types were as follows:

  • medical claims: R29,700
  • general damages: R565,055
  • loss of earnings claims: R1,110,815
  • loss of support claims: R632,671
  • funeral costs claims: R15,380.

The RAF’s latest annual report indicates an improvement in its financial performance.

For the year ending 31 March 2024, the RAF has declared a deficit of R1.59 billion. This is significantly lower than the deficit of R8.43 billion reported for the 2022/2023 period.

However, it’s important to note that this reduction in deficit has come partly at the cost of lower payouts to road accident victims, especially for medical claims.

Notable recent RAF payouts

These are some of the highest and most notable recent RAF payouts.

R4,630,008

In April 2024, a woman was awarded compensation of R4,630,008 after the death of her husband in a motorcycle accident. The compensation included past and future loss of support for herself and two children.

R3,883,226.18

Also in April 2024, the courts ordered the RAF to pay out R3,883,226.18 to Seronica Nathram. This included compensation of R3,699,870 for loss of earnings and R183 356.18 for medical expenses due to injuries from a road accident.

R4,761,570

In 2023, a man who was seriously injured in a road accident was awarded a RAF payout of R4,761,570 for loss of earnings and general damages. In addition, the RAF was directed to cover the full costs of the man’s future medical treatment and accommodation in a hospital or nursing home.

R6.5 million
In 2021, the courts awarded a payout of R6,509,622 to a child who was hit and seriously injured by a swerving taxi on the side of a road. The payout covered general damages, loss of earnings, future medical treatments and hospital or nursing home accommodation and the setting up and administration of a trust for the child.

R2.5 million and 100% of medical costs

In January 2020, the RAF was ordered to pay R2 578 850 and all future medical costs to a man who suffered a severe head injury in a road accident. His injury interfered with his ability to continue his work. Before the accident, he worked as Chief Director of the National Department of Rural Development.

R7.4 million

A six-year-old pedestrian suffered multiple injuries when she was hit by a vehicle. In June 2020, the courts ordered the RAF to pay out R7 476 619.75 to satisfy a claim for general damages and loss of earnings.

R5.9 million

A young girl was awarded a settlement of R5,995,031 after being hit by a taxi. She was walking to school along the pavement when the taxi hit her, causing serious injuries. Her case proceeded to the High Court where it was settled for over R5.9 million.

R3.6 million

As a passenger in a vehicle that overturned, a woman suffered a head injury that left her with memory issues and changes in behaviour. Her forehead was also badly scarred and disfigured in the crash. With legal assistance, her claim against the RAF was eventually settled for R 3,609,295 – many times the RAF’s initial offer of R600,000.

R6.8 million

A passenger in a speeding vehicle that collided with a barrier was left with a loss of feeling and function on one side of his body, resulting in an inability to work or earn an income. With legal representation, the man was able to secure a R6,800,000 RAF settlement in early 2019.

Factors that affect the value of a RAF claim

The payout for a valid RAF claim is influenced by a number of factors, such as:

  • the extent to which you were responsible for causing a road accident (if relevant)
  • the nature and severity of your injuries
  • the expected short- and long-term consequences of your injuries
  • medical costs (including likely future costs) associated with your injuries
  • and loss of income or support as a direct result of your injuries.

A suitably experienced attorney can determine if your claim has merit. The attorney will also be familiar with past RAF payouts for claims involving similar elements to yours.

RAF settlements versus court awards

The RAF is facing a combination of mounting pressure to deliver and eroded legal resources.

Occupying media attention in 2020 was the RAF’s controversial decision to stop using panel attorneys, to reduce its own legal costs.

More recently, the RAF confirmed a goal of rapidly settling a 10-year backlog of long-overdue claims.

Collins Letsoalo, CEO of the Road Accident Fund, 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.”

In this context, it’s easier and potentially cheaper for the RAF to make out-of-court settlement offers than to engage in protracted court cases.

Unfortunately, RAF settlement offers are not always fair.

It’s vital for claimants not to accept settlement offers that are unreasonably low, relative to the compensation that the courts would likely award.

An experienced attorney will have a good idea of the RAF payouts for comparable claims, and can advise you on whether to accept a settlement offer.

RAF claims with DSC Attorneys

At DSC Attorneys, we’re experts in road accident claims, with extensive experience in handling claims against the RAF.

Our personal injury attorneys and medico-legal team are committed to helping road accident victims in our country secure the Road Accident Fund payouts they deserve, in as short a period as possible. We work on a no win, no fee basis.

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