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Most of us are on the eve of departing on our well deserved annual holiday BUT my question to you today is; “Are you sure that you can afford the potential financial ruin associated of an accident on our South African roads”!?
I am not going to discuss Death, Disability, Income Continuation, Personal Asset insurance, etc. but rather the COMPENSATION “AVAILABLE/CLAIMABLE” through the ROAD ACCIDENT FUND.
(Previously known as Third Party Claims)
In terms of the Road Accident Fund Act of 1996, you are insured against injuries suffered at the hands of another driver.
Approximately 46c per litre of petrol is paid towards the Road Accident Fund in the form of an insurance payment. This insurance serves to protect both the injured party and the negligent driver who caused the injuries.
The protection afforded the injured party is that there will be compensation irrespective of whether the negligent driver is rich or poor, insured or uninsured. To receive compensation you must not have caused the accident, and your right to claim must not have fallen away due to time delay.
In terms of Section 17 of the Road Accident Fund Act
The Fund or an agent shall...be obliged to compensate any person (the third party) for any loss or damage which the third party has suffered as a result of any bodily injury to himself or herself or the death of or any bodily injury to any other person, caused by or arising from the driving of a motor vehicle by any person at any place within the Republic, if the injury or death is due to the negligence or other wrongful act of the driver or of the owner of the motor vehicle or of his or her employee in the performance of the employee's duties as employee.
OR THAT IS WHAT I THOUGHT
NEW ROAD ACCIDENT FUND CLAIMS (POST 31/7/2008)
(Accident occurred after 31 July 2008)
In terms of the Road Accident Fund Amendment Act which came into effect on 1 August 2008, the compensation recoverable from the RAF has been changed.
The amended RAF Act
Certain claims which were previously limited to R25, 000.00 are now unlimited. In respect of most claims, though, the compensation payable for damages suffered has been reduced. Below is a brief explanation of the changes in compensation payable by the Road Accident Fund in terms of the amendments to the law
For more details visit the following web page: www.raf.co.za
General Damages
General damages are payable only to claimants who have suffered serious injuries. Serious injuries are those which result in a whole body impairment of 30% or more
Medical Expenses
Medical expenses are payable at the rate charged by the medical service provider only while you receive emergency treatment. After that you will be able to recover only public healthcare tariffs in respect of medical expenses incurred.
Future Medical Expenses
In the event that you obtain medico-legal opinion that you will incur expenses related to your injuries sustained in the collision, the RAF will provide you with a certificate to cover these future expenses.
Loss of income Past and Future
Loss of income is recoverable, but limited to R160, 000.00 per year.
Death Claims : Loss of Support
In the event of death of a breadwinner, the claims of the dependants shall, combined, be limited to a total proportional loss of R160, 000.00 per year.
No claim against the Wrongdoer
Even though the changes to the RAF act have resulted a large amount of personal injury that will not be claimable from the RAF, the balance of your loss is not claimable from the negligent driver that caused you harm.
Travellers and Drivers are therefore urged to relook their personal provisions and not to live in the belief that ROAD ACCIDENT FUND would provide all 3rd Party claimants relief from financial ruin in the event of an accident. Already Short Term Insurance Companies are looking at solutions to the problem – compensation for the “shortfall”. It is therefore in your interest to investigate the market and to test your personal assurance company as to what benefits they cover in the event of an accident – irrespective who the guilty party may be. One of the first products to come to the market is EnRoute In-Car Insurance from Hollard Insurance and Flexible Accident & Sickness Acceptances (Fasa) which cover all the passengers (max 5) in the car against personal injuries and death and can be bought in bits – sums a function of premiums payable.
A true FIRST for the South African market and is certainly, when one study the “possible” benefits offered by the Road Accident Fund something to consider.
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