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The Road Accident Fund (RAF) Amendment Act became operative from August 1 2008, effectively meaning that the amendments to the original RAF Act will replace the compensation system that promoted inequality and threatened the sustainability of the fund, with a system that is more equitable, fair and transparent for the victims of road accidents.

 

So why the change? These legislative amendments appear to have been triggered by the massive payout of R500-million to a certain Swiss resident, Joachim Schoss. The fund contends that the current compensation system is not sustainable and therefore it is in the interest of road-accident victims that limits be introduced for loss of earnings and support as well as general damages.

 

The amendments that are introduced and which have taken effect from 1 August 2008 are:

 

1.    Claims being limited to a maximum of R160 000 per year for loss of income, or R160 000 per year for each deceased breadwinner in the case of a claim for loss of support.

 

2.    "General damages" refer to compensation for pain and suffering, disfigurement and scarring, loss of pleasures of life (e.g. where the injured can no longer participate in sport), loss of life expectancy and emotional shock resulting from injury sustained in the accident. The RAF's obligation in terms of general damages will be limited to compensation for serious injuries, which will be assessed in accordance with the prescribed method.

 

3.    The statutory limit of R25 000 per person in respect of claims from passengers in the offending car will fall away, meaning that passengers in the offending car will have the same rights to compensation as other victims.

 

4.    The RAF's liability in respect of claims for secondary emotional shock (i.e. shock suffered as a result of witnessing an accident or hearing thereof) will fall away.

 

The Act effectively addresses the sustainability of the RAF by ensuring that caps are introduced for loss of earnings and support as well as general damages. In this regard, the amendments will seek to protect those seriously injured who will be able to receive additional compensation, in addition to their medical expenses and loss of income, to help them adjust their lives accordingly.

 

The RAF Amendment Act means that all claims in respect of accidents that occur from 1 August 2008 onwards will be administered under the Amendment Act. And the Claims in respect of accidents that occurred prior to this date will continue to be dealt with in terms of the original Act.

 

So if you are intending to drive to your holiday destination over the festive season, please do take care.

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delport ward & pienaar

attorneys, notaries &  conveyancers
1st floor - cornerstone house

16 loop street

cape town

8001

 

telephone, cape town
+27-21-419.3733

 

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+27-21-419.3743

 

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+27-21-425.6782

 

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+27-21-421.6625

 

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+44-20-8133.0337

 

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+1-202-657.6733

 

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+852-8139.7374

 

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