LETTER: New bill means attorneys and other agents will be big losers in RAF claims
On March 7, Business Day published a letter by Prof Hennie Klopper that contained information that was misleading, with no thorough analysis based on facts. Information regarding the Road Accident Fund (RAF) and annual report documents are easily accessible on the RAF website. These could have been used to structure a more objective opinion. The scheme administered by the RAF is not sustainable. The first actuarial deficit, of just under R1bn, was reported as far back as the 90s. This deficit has grown steadily to R206.6bn, as at January 31. Liquidity challenges resulting in an inability to pay all debts when due has also been a reality at the RAF in recent years. This has led to the routine attachment, removal and sale in execution of RAF assets. More recently the attachment of the RAF’s bank accounts has become prevalent. These attachments interrupt claim processing and payments to claimants. A cash management plan has been implemented to queue payments to creditors. As at Februar...
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