SOUTH AFRICA - DEPARTMENT OF TRANSPORT TO SCRAP ROAD ACCIDENT FUND

The Department of Transport announced on Wednesday that they are currently in the process of scrapping the Road Accident Fund (RAF) for a new scheme. Department spokesperson, Ishmael Mnisi, says that RAF has been under a dire financial situation for many years due to back-paid claims.

Mnisi says that the new system will ensure that road crash victims benefit directly and increase the support provided to survivors.

“Now the department, through the fund itself, began the process of reviewing the structure itself in order to come up with a new structure that will be inclusive in its approach and that will ensure that the bulk of the support it gives to road crash victims goes directly to them.”

Mnisi says that the amount that the department, through their new system, pays to victims will be calculated on the basis of inflation and other factors such as medical expenses and the applicant’s financial burden.

The department says that it wants to do away with the middle man.

Mnisi says that the bill to introduce the new system, known as the Road Accident Benefit Scheme, is currently in Parliament waiting to be voted in.

“As we are speaking, the RABS bill, it is currently in Parliament waiting to be voted in then to be passed to the President for signing.”

via - SABC