UPDATE ON MOTOR VEHICLE ACCIDENT CLAIMS Parliament has approved the Road Accident Benefit Scheme Bill (RABS) which when it becomes law it will lead to the end of the Road Accident Fund as we now know it which will be replaced by the Road Accident Benefit Scheme Administrator. The RABS bill was published by the Minister of transport in the Government Gazette (No 36138) on 08 February 2013. The members of the public were given 60 days from the date of publication to comment on the bill. The days were extended further with 60 days which extension ended on 10 June 2013. Some of the major changes brought by the RABS bill are the following: 1.Removal of fault as a requirement 2Abolishment of claims for general damages. 3. Change in prescription periods for lodgement of claims. 4.The limitation of the amount for funeral expenses. 5.Introduction of the appeal process. 6.The exclusion of inflationary adjustments to amounts claimed. 7.The exclusion of liability for claims by non citizens. REMOVAL OF FAULT AS A REQUIREMENT Throughout the years claimants were required to prove the negligence of the insured driver in order to succeed with their claims. Where there was no negligence the RAF would repudiate a claim which would lead to summons be issued and served against it and the matter ending up in court with either of the parties winning. In terms of the RABS bill that will no longer be the case and the intention of the legislature was to reduce costs involved in litigation with that move. It is worth mentioning that the move follows the recommendation of the Satchwell Commission. ABOLISHMENT OF GENERAL DAMAGES General damages relates to damages of non monetary value like pain and suffering, disfigurement, scarring, emotional shock, trauma etc. While the bill does not expressly state that such claims are abolished it just does not make provision for them which means one cannot claim for them. CHANGE IN PRESCRIPTION PERIODS In terms of the old RAF acts the claimants had periods of 3 years and two years to lodge their claims depending on whether the insured vehicle was identified or not. The RABS does no longer differentiate between identified claims and hit and run claims in that regard for the purpose of lodgement. The prescription periods are setout in Section 47(1) which provides as follows: - Temporary income support benefit claims must be submitted within 60 days after the date of the accident. -Long-term income support benefit claims must be submitted within 180 days after the days of the accident. -Family support benefit claims must be submitted within 1 year after the date of the accident. Funeral benefit claims must be submitted within 30 days after the date of the accident. LIMITATION OF THE AMOUNT FOR FUNERAL EXPENSES The amount to be claimed for funeral expenses will be limited to R10 000.00 with the Minister of Transport given the power to adjust it in accordance with inflation as he sees it fit considering affordability. INTRODUCTION OF THE APPEAL PROCESS Previously claimants would go to court immediately on repudiation of their claims or after 120 days has expired without the matter having been settled. The RABS bill introduces the appeal process which claimants will have to follow after their claims are rejected. EXCLUSION OF INFLATIONARY ADJUSTMENTS TO AMOUNTS CLAIMED Previously the Minister of Transport was mandated to adjust the amounts to be offered for loss of income and loss of support in line with inflation. The actuaries calculating the amounts would also factor in inflation when determining amounts proven for future loss of earnings and future loss of support. The RABS bill has done away with the practice. THE EXCLUSION OF LIABILITY FOR CLAIMS BY NON CITIZENS The RAF had on numerous occasions had to pay claims of foreigners who were injured while in South Africa and such claims were paid in terms of the currency of those foreigners causing the RAF at times to pay more. In terms of the RABS bill foreigners are excluded from the compensation. CONCLUSION It is not clear as to when the RABS bill is expected to be passed into law but it looks like there is pressure to that effect. It remains to be seen whether the bill will not be challenged on constitutional grounds. The members of the public are hereby advised to take note because ignorance of the law is not an excuse. ________________________________________________________________________ Mr Daniel Ledwaba is a practicing attorney at M D LEDWABA ATTORNEYS, in Pretoria. He holds B Iuris LLB degrees from the University of the North {now Limpopo} He worked for the Road Accident Fund as a claims handler for many years. He specializes among others with road accident claims and motor vehicle collision claims. He believes that an informed society will be able to make good decisions for the purpose of development and its own sustainability. IN QUEST FOR FREE AND JUST SOCIETY
Posted on: Mon, 17 Jun 2013 18:13:05 +0000
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