The Road Accident Fund (RAF) spends up to R1.5 billion a month covering victims of road accidents in South Africa.
This is according to the SABC, citing deputy transport minister, Sindisiwe Chikunga at the launch of Road Safety Week dubbed ‘Children and Roads, SavekidsLives’.
The RAF is a state insurer established by statute. Section 3 of the RAF Act stipulates that “the object of the Fund shall be the payment of compensation in accordance with this Act for loss or damage wrongfully caused by the driving of a motor vehicle”.
The RAF provides two types of cover, namely personal insurance cover to accident victims or their families, and indemnity cover to wrongdoers.
SABC News noted that the death toll on South African roads over the recent Easter holiday rose to 287 in 2015, from 193 in the prior year.
“The cost of accidents to our economy is estimated at R306 billion per year, because when somebody is in an accident, either they die or get injured and to manage them in hospitals it costs a lot of money,” Chikunga said.