IMPACT of PROPOSED AMENDMENTS

1. Road Accident Fund Amendment Bill Department of Transport IMPACT of PROPOSED AMENDMENTS • 1. Overview of Impact • Two accidents, eight victims • A quick glace at the impact of a systemic change

2. IMPACT OF PROPOSED AMENDMENTS ON VICTIMS OF ROAD TRAFFIC ACCIDENTS IN WHICH FAULT HAS BEEN PROVEN

3. A taxi and a sedan motor vehicle are involved in a collision, which is caused by the sole negligence of the driver of the taxi. Following the impact the taxi careers off the road onto the pavement where it collides with a pedestrian. The taxi had a valid road transportation permit. The driver of the taxi, (Driver A) sustains a severe head injury, while the driver of the sedan motor vehicle (Driver B) suffers fractures to his right arm, right clavicle & a rupture of his spleen. One passenger in the taxi (Passenger A) sustains a minor whiplash injury, while another passenger (Passenger B) suffers a severe spinal injury, which renders her a quadriplegic. The pedestrian is an American citizen touring South Africa and sustains fractures of both legs. ACCIDENT 1

4. Profile 38 years of age. At the time of the collision was earning R5 000 per month. No medical insurance. Injuries Severe head injury. Treatment Stabilized at scene of collision by ambulance staff. Transported to public hospital. Resuscitated, emergency surgery, admitted to ICU. Transferred to general ward and discharged after two weeks. Sequelae Permanent cognitive and emotional deficits rendering him totally and permanently unemployable. DRIVER A

5. PROCESS TO CLAIM BY DRIVER A • Consults an attorney. • Signs Power of Attorney • Agrees fee; • Furnishes instructions to attorney; • Signs consent form authorizing attorney to obtain necessary documentation. • Claim lodged. • Form 1 completed in all particulars; • Medical Report of Form 1 completed by medical practitioner who treated the injured or by the superintendent of the hospital where the person was treated. • In case of death documentary proof that death resulted from collision; • Precise details of compensation claimed and where applicable accompanied by supporting vouchers; • If in a position to do so, an affidavit in which particulars of accident are fully set out. • Form delivered by hand or sent by registered post. • RAF investigates merits and repudiates claim on the basis that the negligence of Driver A was the sole cause of the collision. • 120 days after claim lodged Driver A issues summons. • Action defended by RAF and matter proceeds to trial for adjudication on the issue of liability. • Court finds that the collision resulted from the sole negligence of Driver A.

6. In terms of both the principal Act and the Bill, Driver A will not be entitled to the payment of any compensation from the RAF in view of the fact that his negligence was the sole cause of the collision.Driver A will be liable to pay his own attorney and client fees & also the party & party fees of the RAF. LIABILITY OF RAF TO DRIVER A

7. Profile 50 year old orthopedic surgeon in private practice. Earns R120 000 per month. Member of a medical aid. Injuries Fractures to right arm, clavicle and rupture of the spleen. Treatment Stabilized at scene of collision by ambulance staff. Transported to private hospital. Surgery performed to insert metal plates and screws into right arm. Admitted to hospital for two weeks. Consequences Unable to work for a period of two months. At a later stage will require the removal of the plates and will at that time be unable to work for a period of one month. Minimal loss of mobility of right arm. Will suffer ongoing pain and discomfort. No residual sequelae result from the rupture of the spleen. DRIVER B

8. Consults an attorney. Claim lodged. Driver B claims both special & general damages. Provides a report from a non accredited medical practitioner stating that a serious injury has been sustained. RAF investigates merits. Driver B referred by RAF to an accredited medical practitioner for an assessment to determine if a serious injury has been sustained. RAF investigates earnings. Report furnished by accredited medical practitioner stating that no serious injury sustained. Offer of settlement. No amount offered for general damages on basis of opinion of accredited medical practitioner. Offer rejected on basis that no compensation offered for general damages and summons issued. Matter proceeds to trial for determination if a serious injury was sustained. PROCESS TO CLAIM BY DRIVER B

9. IN TERMS OF PRINCIPAL ACT Past hospital & medical expenses: Reasonable and necessary costs incurred by Driver B. Future medical expenses: Section 17 (a) Undertaking. Loss of earnings Payment for full loss of earnings while unable to work following the surgical procedures. Future loss payable in a lump sum or in installments if Driver B agrees thereto. General damages General damages payable. IN TERMS OF BILL Past hospital & medical expenses: Liability limited to the tariff based on the tariff for public health care sector. The balance will be paid by the medical aid or the claimant. Future medical expenses Section 17 (a) Undertaking. Payment either to claimant or supplier Loss of earnings Receive 3/12 of gross annual income of R160 000. Past loss paid in lump sum and future loss in lump sum of in installments if agreed by Driver B or ordered by the court. General damages Only payable if the court determines that a serious injury was sustained. LIABILITY OF RAF TO DRIVER B

10. Profile 18 year old student Not a member of medical aid Injuries Minor whiplash injury Treatment Assessed at scene by ambulance staff. Not transferred to hospital. Consulted general practitioner. Pain medication prescribed for one week. Consequences None PASSENGER A

11. Consults the RAF and lodges a claim directly. Assisted by RAF to obtain necessary information & documentation & to complete Form 1. RAF investigates merits. Offer of settlement. Consults with RAF on offer. Offer accepted PROCESS TO CLAIM BY PASSENGER A

12. IN TERMS OF BILL Past medical expense Liability limited to the tariff based on the public health care sector. General damages No liability as a serious injury was not sustained. IN TERMS OF PRINCIPAL ACT Total amount payable limited to R25 000 for special & general damages RAF liable to pay the reasonable and necessary medical expenses as charged by the general practitioner and general damages. LIABILITY OF FUND TO PASENGER A

13. Profile 40 year secretary. Earns R 4 000 per month. Not a member of a medical aid. Injuries Severe spinal injury rendering her a quadriplegic. Treatment Stabilized at scene of collision by ambulance staff. Transported to public hospital. Resuscitated and emergency surgery. Admitted to hospital for seven weeks. Rehabilitation. Consequences Unemployable. PASSENGER B

14. Consults an attorney. Claim lodged. RAF investigates merits. Passenger referred to an accredited medical practitioner for an assessment to determine if a serious injury has been sustained. RAF investigates earnings. Report furnished by accredited medical practitioner. Offer of settlement, in which special damages & general damages offered. Offer rejected on basis that amount offered for general damages not acceptable and summons issued Defended by RAF. Proceeds to trial. PROCESS TO CLAIM BY PASSENGER B

15. IN TERMS OF BILL Past hospital & medical expenses: Liability limited to the tariff based on the public health sector. Balance, if any, to be paid by the claimant. Future medical expenses Section 17 (a) Undertaking. Payment either to claimant or supplier. Loss of earnings Pay past & future loss of earnings up to a maximum of R160 000 per annum. Future loss paid either in a lump sum or by way of installments if agreed, or ordered by a court. General damage General damages payable as a serious injury has been sustained. IN TERMS OF PRINCIPAL ACT Total amount payable limited to R25 000 for special & general damages LIABILITY OF FUND TO PASENGER B

16. Profile 35 year old American chemical engineer. Earns $10 000 per month. Medical insurance. Injuries Comminuted fractures of both legs. Treatment Assessed at scene by ambulance staff. Admitted to private hospital. Surgery. Admitted as in-patient for five weeks. Consequences Unable to work for eight months and will have residual disability in the form of loss of mobility and will also continue to suffer ongoing pain. Will be required to retire 5 years earlier. PEDESTRIAN

17. IN TERMS OF PRINCIPAL ACT Past hospital & medical expenses: Reasonable and necessary costs as charged by hospitals and medical practitioners in South Africa and the United States of America. Future medical expenses: Section 17 (a) Undertaking for future treatment required in South Africa or the USA. Loss of earnings Lump sum payment for past loss of earnings and payment of capitalized value of future loss of earnings either in a lump sum or by way of installments if agreed General damages General damages payable. IN TERMS OF BILL No claim against the RAF by virtue of the definition of a third party. The pedestrian will however have a claim in terms of the common law against the driver of the taxi as a result of the exclusion in terms of Section 21. LIABILITY OF RAF TO DRIVER PEDESTRIAN

18. A pedestrian is hit by a motor vehicle. The collision results from the joint negligence of the driver and the pedestrian, both being equally to blame. The pedestrian is fatally injured and dies on the scene of the collision. The collision is witnessed by the pedestrian’s wife, who is not injured. The driver of the motor vehicle suffers fractures of the pelvis and right femur. ACCIDENT 2

19. Profile 40 year old chartered accountant. At time of death was earning R30 000 per month. Married with three minor children Injuries Fatal PEDESTRIAN

20. Profile 38 year old home executive Married with three minor children Injuries No physical injuries but suffers emotional shock in the form a determinable psychiatric illness as a result of having witnesses the collision Consequences Psychiatric illness. PEDESTRIAN’S WIFE

21. Consults an attorney. Claim lodged for: a) funeral expenses; b) loss of maintenance and support on her own behalf; c) loss of maintenance and support on behalf of her 3 minor children; d) general damages as a result of emotional shock. RAF investigates merits and earnings of deceased. Offer of settlement. Offer accepted. PROCESS TO CLAIM BY PEDESTRIAN’S WIFE

22. IN TERMS OF PRINCIPAL ACT Funeral expense: Payment of costs to cremate or inter the deceased in a grave. Loss of support Payment of past & future loss of support suffered by wife and children, based on earnings of deceased at time of death & projected earnings of deceased but for his death. Past loss payable in lump sum & future loss in lump sum or by way of installments if agreed. General damages General damages payable for emotional shock. IN TERMS OF BILL Funeral expense: Payment of costs to cremate or inter the deceased in a grave Loss of support Calculated up to a maximum gross annual earnings of the deceased of R160 000. General damage Damages for emotional shock not claimable from the RAF. These damages can be claimed from the driver by virtue of the exception contained in section 21. LIABILITY OF RAF TO PEDESTRIAN’S WIFE & CHILDREN

23. Profile 67 years of age. Retired. No medical insurance. Injuries Fractures of ribs, pelvis and clavicle. Fractures of ribs result in collapse of right lung. Treatment Stabilized at scene of collision by ambulance staff; Transported to public hospital; Surgery and admitted to hospital for 3 weeks. Consequences Will require hip replacement in 7 years time. No sequelae from injury to lung. DRIVER

24. Consults the RAF and lodges a claim directly. RAF investigates merits. Driver referred to an accredited medical practitioner for an assessment to determine if a serious injury has been sustained. Report furnished by accredited medical practitioner who determines that a serious injury has not been sustained. Offer of settlement made on basis of 50% apportionment. Offer accepted PROCESS TO CLAIM BY DRIVER

25. IN TERMS OF PRINCIPAL ACT Past hospital & medical expenses: 50% of reasonable and necessary costs incurred. Future medical expenses: Section 17 (a) Undertaking limited to 50%. General damages General damages payable with liability of RAF limited to 50% of such damages. IN TERMS OF BILL Past hospital & medical expenses: Liability limited to 50% of the tariff based on the public health sector. Balance, if any, to be paid by driver. Future medical expenses Section 17 (a) Undertaking. Liability limited to 50%. Payment either to claimant or supplier. General damage General damages not payable as accredited medical practitioner determined that a serious injury had not been sustained. LIABILITY OF RAF TO DRIVER

26. IMPACT OF POSSIBLE SYSTEMIC CHANGE Systemic change frees resources to focus on key issues such as access to health care, capacity in trauma and rehabilitation care and incident management. Exclusions are only according to anti-social behaviour but does not exclude emergency medical treatment.

27. IMPACT OF POSSIBLE SYSTEMIC CHANGE