During 2015-16 the Road Accident Fund (RAF) levy was increased by 50c/l. With the current 30c/l this results in a total increase of R16bn per year in RAF revenue. The approximate shortfall prompting the 2015-16 increase was R2bn per year. Motorists were assured by the then transport minister that 50 c/l would be adequate. Moreover, claims against the RAF have, since 2008, decreased by approximately 50% because of legislative restrictions on claims by road crash victims. Notwithstanding, the RAF’s legal bill has grown from approximately R2.3bn in 2008 to R8bn in 2016-17. The RAF Act makes litigation extremely risky for any claimant provided that the RAF makes a suitable offer of settlement even before summons. A plaintiff risks paying all his/her own and the RAF’s legal costs from the date of the offer should he/she not beat the RAF offer in court. Despite this advantage, the RAF’s approach to claims and litigation appears from the case Hlalele v RAF (October 18 2017) where Judge Joh...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now