LETTER: RAF’s approach to litigation needs urgent investigation
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...
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