Tuesday , July 5 2022

Will the new scheme solve the one that has broken? | business


"It's very disruptive to work, and then the sheriff of the court arrives to take his chair, letting you sit on a litter bin to finish your work."

This is what RAF workers in the 100 offices across the country have proven, according to Phumi Dhlomo, chief marketing officer & Road Accident Fund (RAF).

It can take more than 120 days to pay a claim, by when an inevitable defendant will inevitably have approached the court to seize the mobile assets of the fund, said Dlomo.

To avoid losing furniture, the RAF is now leasing it.

According to the Finance and Public Administration Act, a claim should only take 30 days to process. But a backlog of claims and not enough money to pay will result in delays.

The RAF is a mandatory insurance that provides social security for road accident victims.

In a media instruction on Tuesday, the RAF admitted that its "legislative framework had led to insolvency since 1981".

The Road Accident Benefit Scheme is intended to replace the current system administered by the Royal Air Force, and cut long and costly litigation, high administration costs and long claims process.

One of the major changes offered by the RABS is that "impairment will not be considered on behalf of the claimant or other people concerned" in a vehicle accident.
The "no-fai" system means "creating a new era of socio-economic balance" and breaking the negative results felt by the family and the driver at fault.

As there will be no need to find fault, individuals could submit claims without having to seek legal aid.
Under the current RAF system, claimants need to experience third party negligence before the fund could be compensated.

"The role of attorneys in the new scheme is expected to be limited considering the abolition of the requirement to prove a lack and due to the fact that benefits are defined," the RAF said in a statement on Tuesday.

Claimants were paid more than R25 billion last year while lawyers acted for the RAF and claimants earned around R8 billion.

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"The law companies benefit from the RAF," says Schussler, "And you can not take lawyers out of the system, but you can put a cap on which solicitors can be paid."

However, lawyers believe their services have already capped. "The vast majority of claimants, and in particular victims of bad or unemployed road accidents, are represented by attorneys through the provisions of the 66 Fees of the 1997 Reserve, which have been regulated closely by the courts and the profession, "said Jacqui Sohn, the chairman of the South African Law Society's personal injury committee (LSSA).

"In terms of this Act, legal fees are limited and capped by ensuring that the claimant receives a fair share of the settlement or the ruling."

The Act also allows the claimant to challenge the fee charged, says Sohn.

The LSSA rejected the idea that solicitors have been excessively benefited from the RAF; they provide a valuable service by helping the claimant understand a complicated system.

"There is an attorney that represents a professional duty road accident victim to make the most fair and fair result for the client," said Sohn.

He added that the no-fault clause was a big issue. The LSSA had offered a hybrid scheme for the RABS Act, where claimants could choose the non-fault policy or out of it.

"The LSSA believes that the lawful law of an injured party must be retained to prosecute the negligent party for the balance of its loss or loss not included in the plan," said Sohn.

Another proposed change would be that claimants would be paid monthly installments rather than a lump sum.

"The RAF payment scheme has traditionally had a lotto effect," said Lindelwa Jabavu, RAF chief executive officer, "and is not used for what it means, which is # 39 ; n claim that reclaimers come back to claim again from the RAF or go out to the South African Social Security Agency. "

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