‘Simple way’ to settle RAF claims backlog

The Association for the Protection of Road Accident Victims (Aprav) has proposed the creation of a national Settlement Hub as a simple way to address the crisis at the Road Accident Fund (RAF) and clear its backlog of about 100 000 claims. It would involve funding from National Treasury to clear claims that are ready to be settled without waiting for the RAF’s bigger problems to be fixed first. The ‘bigger problems’ were summarised by Parliament’s Standing Committee on Public Accounts(Scopa) chair Songezo Zibi, who said on Friday the RAF is chronically underfunded – and even when its governance and operational problems are resolved, there will not be enough money to meet all the claim obligations.

While the future of the RAF and its funding challenges are being considered, Aprav vice chair Pieter de Bruyn, speaking at the National Press Club in Pretoria on Thursday, said a new RAF funding model cannot be implemented without addressing the backlog of claims. He pointed out that less than 5% of the about 80 000 RAF claims are in dispute and less than 1% go to trial and need independent adjudication. Against this backdrop, he questioned why 90% of RAF claims go to court.

De Bruyn said the crisis that exists at the RAF has to be relieved. Aprav believes the harm that has already been done must be repaired. There must be relief for claimants, and the RAF must be rebuilt for the future, he added.

[paywall]

The move would cost National Treasury R16 billion, but this is about paying claimants who have been waiting for 10 years, said De Bruyn. The funds would be used to pay claimants what they should have been paid years ago in one lump sum.

[/paywall]