Road Accident Fund (RAF) Highlights from The Media Briefing on 7 June 2021 by the Minister of Transport and Co
The Minister of Transport and Co held a media briefing on the 7th of June for the Board and Executives of the Road Accident Fund (RAF) to respond to the Fund’s financial performance for the previous fiscal year, as well as to give feedback on the strategic objectives that they continue to work towards.
Claimants, medical practitioners, lawyers, and all companies that offer services on behalf of the RAF or the claimants have been concerned about the Fund’s ever-increasing liabilities on their balance sheet in recent years.
After the recent barrage of negative news articles, which gave the impression of genuine concern behind the signs of an imminent collapse, the RAF delivered a positive update.
The following are two highlights from their financial update:
- For the first time in many years, the Fund recorded a surplus of R3.2 billion, a significant improvement from the R5.2 billion deficit recorded in the prior year.
- After adopting a more appropriate accounting treatment for the Fund’s financial statements, they have reduced the RAF reported liability by R305 billion to R28 billion.
With the RAF’s focus now centered on reducing administrative costs, specifically legal expenses that they incur, RoadCover finds alignment with the Fund’s view. The focus being fully justified when you consider that the fund paid out an exorbitant R10.6 billion in legal fees out of the R43 billion it collected, benefits desperately needed by claimants or their dependents.
Despite the fact that the RAF’s Board and Management have made significant progress in addressing the RAF’s ongoing issues, as evidenced by their advancements, the problematic Road Accident Fund still has a long way to go in its pursuit to become a long-term and equitable road accident benefits scheme.
“RoadCover has always been a membership that allows our customers to claim against the Road Accident Fee with NO FEES being applied or withheld against the customer’s payout. As a result, we continue to view ourselves as the solution to issues that plague the Fund and the road users who claim against the Fund” says Riaan van Straaten, Managing Director at RoadCover
For over 15 years, RoadCover has perfected a claims process that is efficient, compassionate, and professional. RoadCover works with market leaders in the medico-legal field to ensure the Fund receives the maximum potential payout in the shortest period feasible.
RoadCover is excited to keep making a positive difference in the lives of the claimants who use our services!