new raf law comes into effect
01 Aug 2008

Transport Minister Jeff Radebe promulgated the Road Accident Fund Amendment Act on Thursday, with effect from Friday.  His ministry said in a statement this meant the legislative amendments to the original RAF Act would replace a compensation system "that promoted inequality".  The new system would be more equitable, fair and transparent for the victims of road accidents, the transport ministry said.

The original RAF Act provided unlimited compensation to certain classes of drivers and passengers and limited compensation to others.  "With the legislative amendments, the average road user will from tomorrow (Friday) be in a much better position," the ministry said.  It said commuters using minibus taxis were, for example, under certain circumstances only entitled to R25 000 for all losses.
"But from tomorrow (Friday), the Amendment Act will remove the inequitable provisions to ensure that all road users are able to claim for their loss of income and medical treatment."

The ministry said the Act also removed the obligation of the Fund to compensate for legal fees related to claiming from and contesting offers made by the Fund.  This did not mean that the Fund would no longer contribute towards legal costs; neither did it imply that legal representatives would not be able to represent the indigent. "The normal rules of the award of costs following the unsuccessful party will apply," the ministry said.  "This amendment therefore removes the incentive for legal representatives to run up costs beyond the amount claimed for."

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