The controversial Road Accident Benefit Scheme Bill was recently revived in Parliament, having lapsed at the end of last year.<\/p>\n
The bill provides for a no-fault benefit scheme and a new administrator – replacing the current Road Accident Fund, says Jean-Paul Rudd, a partner at law firm Adams & Adams.<\/p>\n
“The bill intends moving away from an insurance-based system, which has been in operation in South Africa for many years, to a system of defined and structured benefits,” he said.<\/p>\n
“An insurance-based system endeavours to place the victim of a motor vehicle collision in the same position he\/she was before the accident.”<\/p>\n
While lawmakers claim that the bill is in the interest of the public – as it helps root out unscrupulous lawyers and doctors who have been benefiting from the RAF at the expense of accident victims – Rudd warned that it will result in victims facing huge bills, while receiving little or no compensation.<\/p>\n
Of great significance is that children, who are permanently injured in motor vehicle collisions, will only have limited claims for loss of income against the Administrator, he said.<\/p>\n
“The claims will be calculated based on the average national income, completely disregarding the child\u2019s academic potential.<\/p>\n
“To add insult to injury, the Bill also takes away a victim\u2019s right to sue the common law wrongdoer.<\/p>\n
“By way of analogy, a child intending to study medicine, but who is permanently injured in his\/her final year of schooling, will receive compensation based on the average national income, as opposed to what he\/she could have earned out of a career in medicine. The same holds true for students who have not entered the labour market,” Rudd said.<\/p>\n
Citing figures provided by the Road and Safety Organisation, Rudd said that 810,000 people are injured in traffic collision each year in South Africa, made up as follows:<\/p>\n
“Unfortunately, the RAF\u2019s administration or the lack thereof is in dire straits. This has resulted in a large percentage of the fuel levy being expended on administrative costs, resulting in it not reaching the victims of motor vehicle collisions, which it is actually intended for,” Rudd said.<\/p>\n
“If the bill is approved, children permanently injured will only be entitled to limited compensation, severely prejudicing their Constitutional rights.”<\/p>\n