Ballooning claims confirm Road Accident Fund’s status as a big risk
The Road Accident Fund (RAF), a state-supported insurance fund that provides compensation to the victims of road accidents, posted a more than one-fifth jump in 2020 claims liabilities, offering a harsh reminder of the risks facing SA’s fragile finances.
The fund, which is housed in the department of transport, is behind Eskom as the government’s biggest contingent liability — or a legal obligation for the government to make payments if the RAF is unable to honour settled claims — and has been repeatedly flagged as one of the biggest risks to the state, which is expected to run a budget shortfall of about 15% and be saddled with a ballooning debt...
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