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RAF in financial difficulties, may not be able to pay claims – AG
Written by Koena Mashale | 11 March, 2025 | Sowentan Live The auditor-general (AG) has raised concerns that the Road Accident Fund (RAF) may not remain financially sustainable in the foreseeable future due to severe solvency challenges with liabilities exceeding assets. The AG said this might affect claim payments to road accident victims. This follows the AG’s audit report for the 2023/24 financial year, presented to the Standing Committee on Public Accounts (Scopa) in parliament on Tuesday. The report revealed that the RAF’s liabilities exceed its assets, with an accumulated deficit of R25.5bn, raising questions about its long-term sustainability. “A material uncertainty on going concern was reported as the entity has solvency challenges with liabilities exceeding assets…Solvency challenges may impact the ability of the entity to pay accident claims and fulfill its mandate. These factors are indicators that RAF has financial difficulties and may not be able to pay liabilities
How an important state-owned entity made R300 billion ‘disappear’
Written by Staff Writer | 11 March, 2025 | BusinessTech The Auditor General of South Africa has criticized the Road Accident Fund for its refusal to use approved accounting standards, delivering another adverse audit outcome for the 2023/24 financial year. Presenting its audit findings to the Standing Committee on Public Accounts (SCOPA) on Tuesday (11 March), the AGSA said the adverse outcome is the fourth in as many years for the RAF. This is tied directly to the RAF’s decision in 2019/20 to unilaterally change its accounting standard from the approved International Financial Reporting Standard 4 (IFRS 4) to the International Public Sector Accounting Standards 42 (IPSAS 42). This resulted in the RAF’s reported liabilities dropping significantly from the R327 billion reflected in the 2019/2020 financial year to only R34 billion in the 2020/2021 financial year – wiping R293 billion in liabilities off the books. IFRS 4 is the accounting standard
What Is a Third-Party Personal Injury Claim in South Africa
A third-party personal injury claim can feel daunting, particularly because sustaining a personal injury is often an unforeseen and potentially life-changing event. Whether the injury results from a vehicle accident, a slip and fall, or another incident, the road to recovery can be overwhelming and filled with unexpected challenges. One avenue that may be available to an injured person is pursuing a third-party personal injury claim. Understanding how these claims work can help you navigate your situation more effectively and understand your options for seeking compensation. What are personal injury claims? A personal injury claim arises when an individual suffers harm due to another person’s negligence or intentional act. This could range from minor injuries to severe, life-altering conditions. The principle behind personal injury law is that those who cause harm may be held responsible for the consequences of their actions. Common types of personal injury claims include: Motor vehicle
When is RAF Bridging Finance a Good Idea?
“When is RAF bridging Finance a good idea?” is a question we often get asked at Gert Nel Inc Attorneys. In the aftermath of a road accident, individuals often face not only physical and emotional distress but also financial strain. The Road Accident Fund (RAF) compensates those affected by road accidents. However, claiming from the RAF can be a lengthy and cumbersome process, leaving victims in financial limbo. This is where Road Accident Fund Bridging Finance comes into play, offering a financial lifeline to those awaiting settlement. In this blog, we explore whether selecting RAF Bridging Finance is a good decision, emphasising that while it can be beneficial, it’s not a one-size-fits-all solution. Understanding Road Accident Fund Bridging Finance RAF Bridging Finance is designed to provide immediate financial relief to individuals awaiting compensation from the Road Accident Fund. These bridging loans offer a portion of the expected settlement in advance,
Knowing What to do After a Personal Injury
Due to the unexpected nature of personal injury, one may be too overwhelmed to know what to do after a personal injury. You may find yourself in a challenging and overwhelming situation and can incur unexpected expenses. It’s crucial to take specific steps to protect your well-being and ensure you’re taking the necessary actions to address the problem correctly. Here is a general guide on what steps to consider after a personal injury: Seek Medical Attention The first and most important step is to seek immediate medical attention. Your health is the top priority. Even if the injury seems minor, it’s essential to consult with a healthcare professional to assess the extent of your injuries and receive proper treatment. Report the Incident If the injury occurred in a public place, at work, or in any other location where there may be liability, report the incident to the appropriate authority. This
The Road Accident Fund (RAF) Amendment Bill 2023: A Look into Proposed Changes and Potential Impact
The Road Accident Fund (RAF) has long been a subject of scrutiny and criticism in South Africa. Time and again, it has faced challenges in fulfilling its responsibilities to those affected by road accidents. Now, in light of these issues, the Department of Transport introduced the draft RAF Amendment Bill, 2023. A Brief Overview The draft bill, made public in August 2023, aims to alter the RAF’s future operations. The public has less than a month to add their voice to these amendments. What are the significant amendments? Overall, the draft suggests moving away from the current system, which compensates victims based on the actual damages suffered to a “structured benefit” structure. The amendment Bill represents a watered-down version of the RABS Bill which was rejected in its entirety in August 2017. 1. Structured Benefits Over Compensation Instead of compensating for actual damages, the RAF would cater for a structured
5 Types of Personal Injury Claims You Should Know
Accidents happen, but some can lead to serious and lasting consequences. Understanding the most common types of personal injury claims can help you recognise situations where an injury may have legal implications. Personal injuries can result in physical, emotional, and financial difficulties. Fortunately, many accidents can also be prevented by taking simple precautions. This blog looks at five common types of personal injury claims and how certain risks may be reduced. Slip and Fall Claims Slip and fall accidents are one of the most common causes of personal injury. These accidents can occur on wet floors, uneven surfaces, and stairs. Claims may arise where an injury occurs because of unsafe conditions or hazards. Always be aware of your surroundings and wear slip-resistant shoes where appropriate. Use handrails when available, and avoid rushing or running on slippery surfaces. If you notice a wet floor, report it to the appropriate person so
Access to Healthcare in South Africa and the Challenges Facing Rural Communities
Access to healthcare in South Africa remains a significant challenge for many people living in rural communities, where patients may face difficulties accessing and obtaining quality care. As such, addressing substandard care in rural areas of South Africa is an urgent and ongoing issue that requires attention and action. Challenges affecting access to healthcare in South Africa Availability of Qualified Healthcare Professionals The shortage of qualified healthcare professionals, together with the unequal distribution of healthcare services in rural areas, is one of the key challenges faced by rural communities. Limited access to doctors, nurses and other trained healthcare professionals can make it more difficult for patients in rural areas to receive appropriate medical attention when they need it. Access to Health Care The World Health Organization describes access to health care in terms of financial, population and service coverage. Many families are not able to access healthcare services because of
4 Factors That Cause Road Accidents in South Africa
Factors that cause road accidents continue to contribute to serious injuries and deaths across South Africa. According to the Road Traffic Management Corporation, there were more than 10,000 deaths on South African roads in 2020 alone. At Gert Nel Inc Attorneys, we have seen the devastating effects of road accidents firsthand. An accident can cause physical injury, emotional trauma and financial uncertainty for victims and their families. We are committed to helping injured road users understand their rights and pursue the compensation they may be entitled to. This blog explores some of the most common factors that cause road accidents and the practical steps road users can take to reduce their risk. Reckless or negligent driving Reckless or negligent driving is one of the most common causes of road accidents. This may include speeding, driving under the influence of alcohol or drugs, ignoring traffic laws and driving while distracted. According