The Road Accident Fund Amendment Bill 2023, released on September 8 by the Department of Transport, has ignited a fire-storm of controversy, with over 5,000 objections pouring in.
Critics argue that if enacted, the bill will severely curtail the rights of drivers, passengers, and pedestrians to claim compensation for motor vehicle accident injuries.
The proposed legislation seeks to overhaul the Road Accident Fund (RAF), transitioning from a "compensation" model to a "social benefits" structure.
Advocate Justin Erasmus, chairperson of the Personal Injury Plaintiff Lawyers Association (PIPLA), in collaboration with multiple law societies, warns that the changes would drastically limit benefits and restrict existing rights, especially impacting the economically disadvantaged.
Highlighting the bill's contentious points, Erasmus points to the proposed annuity payments for loss of earnings, replacing the current lump sum payouts.
Furthermore, compensation for pain, suffering, disfigurement, and shock would be completely abolished. "Considering the RAF's history of payment delays and mismanagement, this seems like another tactic to reduce government payouts to victims," Erasmus stated.
Dr. Herman Edeling, chairperson of The South African Medico-Legal Association (SAMLA), expressed grave concerns from a medical standpoint.
He emphasised the potential hardships for the injured, especially those without financial means, in accessing and affording necessary medical treatments.
Additional alarming exclusions in the bill include:
– Restricting coverage to accidents on public roads, excluding private areas like parking lots and driveways.
– Excluding compensation for "hit and run" victims.
– Denying compensation to non-South African citizens or non-permanent residents.
– Excluding compensation for individuals over the legal alcohol limit, even if they weren't at fault.
– Layton Beard of the Automobile Association of South Africa (AA) highlighted the vulnerability of pedestrians, citing that they constituted 42% of road deaths in 2022.
Erasmus also raised concerns about the implications for medical aid schemes and their members, predicting skyrocketing premiums and potential delays in care for victims due to the RAF's pre-authorisation requirement for medical claims.
Furthermore, Erasmus called for a review of the clause preventing victims from suing those responsible for accidents, a right that has been absent since 2008. "If we're moving away from compensation, this right must be reinstated," he asserted.
Objections to the Bill can be submitted until October 6 deadline here: https://dearsouthafrica.co.za/road-accident-fund/.
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