Written by Hennie Klopper | Published on 15 January 2025 | News24
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 Road Accident Fund (RAF), a fund meant to provide medical and financial compensation to victims of road crashes.
Yet, despite this substantial public contribution, the RAF is mired in a financial and operational crisis, leaving victims waiting up to eight years for compensation.
The reality of these delays is a bureaucratic inconvenience and 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; it is a moral and societal crisis demanding immediate action.
South Africa’s roads are among the most dangerous in the world.
Evidence is it is reported that – in 2023 alone – over 12 000 road fatalities were recorded, with pedestrians accounting for 40% of these deaths.
Road crashes disrupt the lives of millions annually and cost the economy R200 billion, according to a recent ministerial report.
Proven international measures to reduce human error and promote law enforcement could also help lower crashes.
The proposed Aarto Act must go further, ensuring offences are detected, fostering road safety awareness, and holding drivers accountable.
Fixing the system, the RAF’s inability to process claims efficiently has left more than 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.
RAF leadership often blames the legal and medical fraternity for rising costs while sidestepping its own policies that exacerbate the problem.
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, many of whom 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.
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.
The failure to settle claims before trial compounds the financial impact.
As cases progress, interest and legal fees escalate significantly respectively amounting to more than R2 billion and R3 billion annually. Thus, 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.
The RAF’s liabilities exceed R500 billion, far outpacing its annual revenue of R46 billion from the fuel levy.
While a government bailout is urgently needed, it must include strict accountability measures.
Leadership reforms, comprehensive audits, and transparent reporting are essential to ensure a bailout achieves its purpose.