RAF needs a Settlement Hub for crash victims – expert

The RAF needs a Settlement Hub where claims for car crash victims can be settled before they go to court to avoid the RAF’s systemic failures from harming them and causing neglect, an expert says.

South Africa’s road accident victims face unprecedented delays in compensation as the Road Accident Fund (RAF) struggles with severe operational and financial crises, Gert Nel, CEO of Gert Nel Inc., says.

Nel says it is important to settle claims outside of court wherever possible. “Settlements, including compensation for medical costs, lost income, and general damages, provide a faster and less costly resolution for victims.

“However, the RAF frequently bypasses these opportunities, particularly in cases already on the court rolls. We recommend that the RAF consider establishing a Settlement Hub staffed by experienced claim handlers, which could help reduce the backlog, alleviate court congestion, and lower legal costs for all involved.”

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Board Notice 271 makes it more expensive for crash victims to claim from RAF

He says a key issue is the recent introduction of Board Notice 271 that requires accident victims to submit extra paperwork, including costly medical and official reports, to process their claims.

“This requirement hits financially vulnerable victims the hardest, as many cannot afford these documents, which are essential to prove their injuries and financial losses. For those unable to secure this paperwork, claims are often delayed or even “prescribed”, meaning they are invalidated due to missed deadlines.”

Nel says rather than streamlining access to compensation, Board Notice 271 has so far created more barriers, increasing financial and emotional strain on those already in hardship. “Victims now face additional costs and delays that make it even more difficult to receive the compensation they urgently need, contradicting the RAF’s mission to support crash victims.”

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Fake accusations against legal and medical professionals

He adds that false accusations against legal and medical professionals are another key issue for crash victims. “The RAF has repeatedly blamed legal and medical professionals for delays in claim settlements, accusing them of unnecessarily prolonging the process.

“However, the RAF’s current passive approach has not fully leveraged available remedies under the Act or adopted procedural safeguards to manage claims efficiently, resulting in increased litigation.”

Nel points out that in many cases, securing a trial date is the only way to compel the RAF to address and settle cases. “In fact, 99% of trial-allocated cases are eventually resolved before reaching trial, underscoring the RAF’s lack of proactive case management.

“We are still in court daily and have yet to encounter any meaningful attempt by the RAF to ‘develop a plan’ to settle directly and reduce the backlog on the trial rolls, as the minister’s stated in September.”

Furthermore, he says the RAF’s delays require medical professionals to repeatedly update reports as victims’ conditions evolve, which adds significant costs. “These delays in compensation negatively impact victims’ health and recovery, often postponing specialised treatments until it is too late.”

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RAF’s financial crisis another key issue

Nel says the RAF’s financial crisis is another key issue. Recent discussions with parliament’s Standing Committee on Public Accounts (SCOPA) highlighted the RAF’s worsening financial state, with over R500 billion in unpaid claims.

Nel says this financial strain is crippling the RAF’s ability to deliver fair compensation to crash victims whose needs continue to be neglected.

“The RAF frequently fails to send representatives to court, resulting in an increasing number of default judgments, court orders granted in the claimant’s favour due to the RAF’s absence. According to the Special Investigations Unit (SIU), these default judgments cost the RAF billions.

“Policies such as Board Notice 271, refusal to pay certain court-ordered expenses, and non-compliance with the 180-day payment deadline only compound the RAF’s challenges, adding to both the costs and difficulties victims face.”

Nel says decision makers must recognise that, left unchecked, the RAF is collapsing under its own strain, creating an ever-growing backlog while victims’ needs continue to be neglected.

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Some victims pass away after years of waiting for compensation

He says he has many clients, such as Ryan Aspeling, Johan Spies, Nicolaas Nel, and Jonas Wilson, who share heartbreaking stories of years spent waiting for compensation, enduring untreated injuries, and experiencing severe financial strain.

“Some have lost their homes, others their livelihoods and tragically, some have passed away while awaiting relief. Data from legal professionals across the country show that these delays are widespread, with some victims waiting five to seven years for payment and some claims remaining unresolved indefinitely.”

Nel is urging the RAF to make meaningful changes, such as establishing a Settlement Hub and overhauling its claims process.

“This crisis requires more than a financial bailout. It demands a fundamental reform in the RAF’s approach to managing claims. Every day of delay comes at the cost of the very people RAF is meant to protect.”