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ROAD ACCIDENT FUND: AN OVERVIEW

ROAD ACCIDENT FUND: AN OVERVIEW. DEPARTMENT OF TRANSPORT. CONTENTS OF PRESENTATION. Challenges addressed Road accidents in South Africa Claims against the RAF Trends in RAF compensation payments Transaction costs Fuel levy and RAF income Object of the Bill Key amendments

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ROAD ACCIDENT FUND: AN OVERVIEW

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  1. ROAD ACCIDENT FUND:AN OVERVIEW DEPARTMENT OF TRANSPORT

  2. CONTENTS OF PRESENTATION Challenges addressed • Road accidents in South Africa • Claims against the RAF • Trends in RAF compensation payments • Transaction costs • Fuel levy and RAF income Object of the Bill Key amendments Questions raised on 1 June 2005 Finalisation

  3. SYSTEM OF ROAD ACCIDENT COMPENSATION: A CONCEPTUAL FRAMEWORK Number of vehiclesKilometres travelled Road accidents Fuel sales Fuel levy Road accident victims Compensation expenditure RAF Income Cost expenditure Legal profession RAF Service providers Regulatory environment Other role players

  4. ROAD ACCIDENTS IN SOUTH AFRICA

  5. GROWTH IN VEHICLE POPULATION IN SOUTH AFRICA: 1990 - 2003 Average annual growth: 4%

  6. GROWTH IN ROAD ACCIDENTS IN SOUTH AFRICA Average annual growth: 2.6%

  7. GROWTH IN ACCIDENTS IN SOUTH AFRICA: 1990 - 2003 Average annual growth: 3.2% Average annual growth: 2.6% Average annual growth: 0.8%

  8. PEOPLE INJURED IN ACCIDENTS IN SOUTH AFRICA: 1990 - 2003 Average annual growth: 3.2%

  9. CLAIMS AGAINST THE RAF

  10. ACCIDENTS AND ACCIDENT CLAIMS LODGED WITH RAF Average annual growth: 2.6% Average annual growth: 7.3%

  11. INJURED PERSONS AND INDIVIDUAL CLAIMS LODGED WITH THE RAF:1993 - 2003 Supplier claims included in RAF claims

  12. CASUALTIES PER CASUALTY ACCIDENT AND RAF CLAIMS LODGED PER ACCIDENT

  13. INJURIES OF VICTIMS COMPENSATED BY THE RAF: 1999-2001

  14. HOSPITALISATION OF VICTIMS COMPENSATED BY THE RAF: 1999-2001

  15. TRENDS IN RAF COMPENSATION PAYMENTS

  16. R 3,500,000,000 R 3,000,000,000 R 2,500,000,000 R 2,000,000,000 R 1,500,000,000 R 1,000,000,000 R 500,000,000 R 0 2000 2001 2002 2003 2004 TOTAL COMPENSATION PAID: 2000 - 2004

  17. COMPENSATION PER HEADS OF DAMAGES: 2000 - 2004

  18. PERCENTAGE OF AMOUNT CLAIMED PAID

  19. REAL ECONOMIC LOSS AND NON-ECONOMIC LOSS PAID BY THE RAF: 2000 - 2004

  20. DISTRIBUTION OF COMPENSATION BY THE RAF UNDER THE HEADS OF DAMAGES

  21. DRIVERS OF COMPENSATION: GENERAL DAMAGES

  22. DRIVERS OF COMPENSATION:FUTURE LOSS OF EARNINGS

  23. COSTS

  24. TRENDS IN LEGAL COSTS PAID BY THE RAF: 2000 - 2004

  25. LEGAL COSTS COMPARED TO COMPENSATION PAID

  26. FUEL LEVY AND RAF INCOME

  27. INCOME FROM FUEL LEVY: 2000 - 2004

  28. INCOME AND EXPENDITURE

  29. RAF AMENDMENT BILL

  30. Object of Bill To limit the liability of the Fund To provide a system of compensation which is more equitable, fair and transparent whilst allowing for good governance.

  31. Key Amendments Governance Removal of limitations on passengers Introduction of limitation on loss of income and support claims (R160k) Limit the Fund’s liability for general damages only for seriously injured citizens or permanent residents Introduce medical tariffs Allow for no-fault emergency medical treatment Remove liability for emotional shock claims from secondary victims

  32. Questions raised at previous meeting Questions from previous briefing: Rule of Law: Constitutionality of specific limitations Tariff for legal work: Taxed party-to-party Legal practice: Law Society SA Assessment: Accreditation such that rural clinics could provide assessment services Funeral costs: removed Support claims relating to accidents on farms: despite rebate any accident anywhere in SA is covered Backlog: Not addressed in Bill directly provision for outsourcing may increase efficiency

  33. Finalisation of Bill Constitutional Opinion, Adv Wim Trengove: Replacement of common law rights with statutory rights without allowing access to the common law will succeed in a constitutional challenge as long as the specific limitation are found to be constitutional. Second opinion due for next committee meeting on 6th September. Comments of the Board of the RAF being considered for inclusion. THANK YOU Marissa du Toit Department of Transport

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