PRETORIA, February 4 (ANA) – Transport Minister Dipuo Peters had apologised to claimants, service providers, stakeholders, and caregivers affected by the delays in payment following the attachment of the Road Accident Fund’s (RAF) bank account by the sheriff of the court.
“Minister Peters finds the attachment of the RAF’s bank account by the sheriff of the court unfortunate and regrettable because the action denies the claimants access to their much needed financial relief from government,” the transport department said in a statement.
Peters had directed that the RAF keep those affected informed and abreast with the status quo and ensure that normality was restored urgently.
On Friday, RAF chief executive officer Eugene Watson said RAF payments had ground to a halt due to the RAF’s bank account being attached by the sheriff of the court.
“This is a result of a few legal firms whose actions have disrupted an established cash management plan which now inconsiderately prioritises them over those who have patiently been awaiting payment.
The attachment had adversely impacted the institution, disrupting its efforts to honour all its obligations and ensure it continued fulfilling its mandate to indemnify, compensate and rehabilitate car crash victims, despite not having sufficient funding.
“We apologise for any inconvenience caused and every effort is being made to resolve the matter speedily in order for the RAF to resume payments.
“The immediate payment halt, continued cash constraints and the huge, unfounded liability the minister of finance raised in the medium-term budget speech are continued evidence that the RAF dispensation is expensive, unaffordable, and unsustainable. Change is an urgent necessity,” Watson said.
Several legal firms have reportedly sued the fund for R11 million.
In the statement, the department said while government was planning to introduce the Road Accident Benefit Scheme (RABS), the RAF introduced the cash management plan two years ago to maintain regular payment.
“The current scheme administered by the RAF is subjected to fraud, opportunistic and over-inflated claims, professional malpractice, and human failing. This is among the many reasons that led to government’s introduction of the RABS, a no-fault scheme, which will create a new era of socio-economic balance and also remove the unintended negative consequences and financial burden on the families of the wrongdoer,” it said.
The RABS was intended to replace the current fault-based system administered by the RAF, which often resulted in extensive and costly litigation, prolonged claims finalisation, and high administrative costs. Under the RABS, fault would not be considered on the part of the claimant or other persons involved in the road accident. The focus would essentially be on how the claimant was immediately assisted.
In terms of the scheme, payments would be made directly to claimants, medical, and healthcare service providers. Funded by the fuel levy, the RABS would provide benefits for medical expenses, income support, family support, and funeral benefits.
Claimants would be able to claim from the scheme, while the scheme’s administrator (RABSA) would assess claims for benefits and pay beneficiaries in terms of the act. The removal of fault and the provision for defined benefits further limited room for disputes and associated legal costs that would otherwise have been incurred, the department said.
– African News Agency (ANA)
