RAF national crisis demands urgent action – expert

The Road Accident Fund (RAF) has become a national crisis that demands urgent action as it is mired in a financial and operational crisis, leaving victims waiting up to eight years for compensation.

Every time you fill up your car, part of your payment is a lifeline for road crash victims or at least, it should be. South Africans contribute approximately 40% of the total current fuel levy to the RAF, a fund meant to provide medical and financial compensation for victims of road accidents.

Yet, despite this substantial public contribution, the RAF is in crisis and the victims bear the brunt as they wait for compensation, professor Hennie Klopper, an authority on third-party compensation law, says.

“The reality of these delays is not just a bureaucratic inconvenience, but a direct assault on vulnerable people. Victims suffer untreated injuries, worsening medical conditions and mounting financial burdens.

“Meanwhile, the public’s trust in the RAF erodes as leadership deflects responsibility and offers no tangible solutions. This is no longer just a policy failure but a moral and societal crisis demanding immediate action.”

He points out that South Africa’s roads are among the most dangerous in the world. In 2023 alone, over 12 000 road fatalities were recorded, with pedestrians accounting for 40% of these deaths.

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RAF’s financial burden can be reduced

Klopper says reform must include strengthening road safety campaigns, improving infrastructure such as pedestrian crossings and enforcing stricter traffic laws. “Proven international measures to reduce human error and promote law enforcement could also help lower crashes.

“The proposed Aarto [Administrative Adjudication of Road Traffic Offences] Act must go further by ensuring offences are detected, fostering road safety awareness and holding drivers accountable. Beyond saving lives, these reforms would reduce the RAF’s financial burden by decreasing claims. Fewer crashes mean more resources for victims who truly need support and could even ease the current fuel levy’s impact on drivers.”

How can government fix the system? Klopper says the RAF’s inability to process claims efficiently has left over 104 000 victims without recourse. Of 107 000 claims lodged in 2022/23, fewer than 3 000 were processed.

“Instead of settling straightforward cases early, victims are pushed into costly litigation. These inefficiencies have increased the average cost per claim by 20% since 2020, inflating the RAF’s financial woes.”

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RAF must stop blaming legal and medical fraternity

RAF leadership often blames the legal and medical fraternity for rising costs while sidestepping its own policies that exacerbate the problem. Klopper says a prime example is the illegal Board Notice 271, which imposes extensive medico-legal documentation requirements on claimants.

“These requirements create significant financial and procedural barriers for victims and many lack the resources to comply. For instance, injured individuals may be required to consult multiple specialists, submit extensive reports and undergo repeated evaluations, processes that are both costly and time-consuming.”

Instead of simplifying access to compensation, the directive effectively denies justice to those who need it most, he points out. “Vulnerable claimants, unable to meet these onerous demands, are often forced to abandon their claims or rely entirely on legal professionals who work on a contingency basis.

“These professionals not only finance claims but also navigate the complex system on behalf of their clients, ensuring they have a chance at justice.”

Klopper warns that the failure to settle claims before trial compounds the financial impact. “As cases progress, interest and legal fees escalate significantly, respectively amounting to over R2 billion and R3 billion annually. Therefore, the RAF’s inefficiencies, not the actions of legal or medical professionals assisting victims, are the true drivers of its escalating costs and deepening crisis.”

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Dire consequences for victims who have to wait for years

For victims, the RAF’s failures are a matter of survival. Klopper says without timely compensation, many cannot afford essential medical care, leading to worsening conditions and higher costs.

“Families of deceased breadwinners face prolonged financial hardship, often waiting years for payouts that push them further into poverty. Tragically, some victims pass away before receiving any compensation, leaving unresolved claims and devastating their families both emotionally and financially.”

The RAF’s liabilities exceed R500 billion, far outpacing its annual revenue of R46 billion from the fuel levy. Despite substantial public funding, the RAF struggles with missed payments, court no-shows and growing backlogs. Default judgments against the fund continue to increase, further compounding its financial instability.

While a government bailout is urgently needed, it must include strict accountability measures, Klopper says. “Leadership reforms, comprehensive audits and transparent reporting are essential to ensure a bailout achieves its purpose.”

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Klopper says the RAF’s recovery requires a multifaceted approach.

This is what RAF recovery would require:

• Road safety and law enforcement: Invest in measures to reduce crashes and fatalities, lowering claim volumes over time.
• Operational efficiency: Establish a “settlement hub” to fast-track simple claims and reduce litigation costs. Hire legally trained professionals to manage claims efficiently.
• Financial reform: Secure a government bailout with robust controls to address liabilities and prevent future crises.
• Legal alignment: Repeal policies like Board Notice 271 and ensure compliance with court rulings affirming victims’ rights.

However, Klopper points out that these solutions demand political will, judicial oversight and collaboration with all stakeholders.

“The RAF’s failures are not just inefficiencies. They are a betrayal of South Africans who trust the fund to deliver justice and dignity to road crash victims. It is time for a national reckoning. South Africans must demand accountability from the RAF and its leadership.

“By addressing the root causes of this crisis and committing to meaningful reform, we can restore the RAF’s purpose and rebuild public trust. The road ahead is challenging, but the cost of inaction is far greater. South Africa deserves a Road Accident Fund that serves its people with compassion and integrity. The time to act is now.”