The Road Accident Fund (RAF) continues to suffer from cash flow and administrative problems.
RAF claims are still being paid out. However, it’s more important than ever to get proper legal assistance to ensure fair settlement.
RAF struggling financially
The performance of the RAF has continued to deteriorate over the past decade. Corruption and maladministration, together with an increase in the total volume of claims, have compromised the Fund’s ability to fulfil its mandate.
The RAF’s most recent audit had an “adverse” outcome, pointing to gross errors and possible fraud.
Notwithstanding possible under-reporting of losses, the Fund had a declared deficit of R8.43 billion for the most recent financial year.
It also had a backlog of over 321,000 road accident claims.
RAF still settling claims – but legal assistance is key
Despite its on-going financial problems, the RAF is still compensating road accident victims. Find out more about some of the notable RAF claim payments made recently.
Increasingly though, it’s necessary to sue the RAF for failure to settle claims fairly and on time.
Since mid-2020, it has become commonplace for court rulings in favour of plaintiffs to be made in the complete absence of RAF representatives. This is despite appropriate notice being given and the correct claim processes being followed.
Delays in settlement of RAF claims
On average, it takes three to six years for a RAF claim to come to trial and be finalised. In some cases, it can take even longer.
Even once an approved court order has been issued, expect delays.
In theory, the RAF pays approved claims within 180 days.
In practice, claimants are experiencing delays as long as a year.
What contributes to such long delays?
Abnormally long delays are due to the Fund’s on-going mismanagement and financial difficulties, and a backlog of cases that has accumulated over several years.
The system used by the RAF to award compensation also adds to delays.
Under current RAF policies, it’s necessary to determine the percentage of each driver’s liability for an accident before the RAF determines the compensation to award a claimant. This makes processing each claim a lengthy task.
Another issue is that claims of R100,000 or less are paid out first. This means that those entitled to large settlements from the Fund typically have to wait the longest to be paid.
Sometimes this means that those who need the cover most are the last to get it.
Under-settlement of RAF claims
It has become common for the RAF to under-settle claims, especially from those who submit their claims directly to the Fund, without independent legal representation. It’s also alarmingly common for claims to prescribe (lapse as a result of passing a legal time limit) while still in the hands of the Fund.
Where this happens, claimants can choose to sue the RAF.
According to an article in the South African attorneys’ journal, De Rebus, “…many direct claims are converted to represented claims and there are thousands of documented cases of attorneys successfully suing the RAF for the under-settlement and/or prescription of these matters.”
What you can do: securing RAF payments
The best way to secure a fair, reasonably timely settlement from the RAF is to use the services of an experienced personal injury attorney, who can represent your interests legally.
At DSC Attorneys, all our attorneys are highly experienced in personal injury law and offer many years of combined experience in handling Road Accident Fund claims.
Do I have a claim?
At DSC Attorneys, we specialise in Road Accident Fund claims. If you’ve been the victim of a road accident, contact us for professional legal help. We also operate on a “no win, no fee” basis.
