Department

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Amendment of the Road Accident Fund Act
Department of Transport
PRESENTATION TO PARLIAMENTARY PORTFOLIO
COMMITTEE 8 th September 2004
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Key Processes
Department of Transport
Equity
Amendment Process
RAF
Fairness
Transparency
Governance
Competency
Governance
Efficiency
Fraud and corruption
Consultation
Future of the RAF
Policy changes
Restructuring
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Current Bill before Parliament
Department of Transport
Objective RAF Amendment Bill 2003 RAF Amendment Bill (2004)
Parliament resolved to continue with all Bills tabled pre-elections Objective of Bill to limit liability of RAF Objective remains unchanged Proposed corrections and improvements based on submission and representation made in Oct Nov 2003 Ethos of proposed changes is to provide for universal application of Act to all road users
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Current Bill before Parliament
Department of Transport
Details RAF Amendment Bill 2003 Portfolio Committee Recommendations RAF Amendment Bill (2004)
Corrections to acceptable clauses Liability in term of medical tariffs Limit liability wrt non-residents Exclude liability wrt emotional shock of secondary victims Liability linked to medical tariffs, transformative objections and payment schedules Make Act universal in its application Remains unchanged
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Current Bill before Parliament
Department of Transport
RAF Amendment Bill 2003 RAF Amendment Bill (2004)
Corrections to acceptable clauses continue Mediation and arbitration Deductibility of Collateral Damages Mediation and arbitration processes are first interventions? Proposed cap may necessitate reliance on private insurance?
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Current Bill before Parliament
Department of Transport
Amendment Bill 2003 Amendment Bill 2004
Improvements to un- acceptable clauses Compulsory provision of medical undertakings Provision of compensation for income and general damages in the form of installments Transitional arrangements Regulated method of payment to ensure reasonableness (Fund to determine payment method subject to guidelines in Act). Limitation on liability will focus on capping liability and not postponement of liability. Removed
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Current Bill before Parliament
Department of Transport
Amendment Bill 2003 Amendment Bill 2004
Improvements Amendment Bill Regulated level of funeral compensation RAF legal fees excluded from Contingency Fees Act, 1997?
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Key Principles underpinning the Amendment
Bill
Department of Transport
Equity
Fairness
Amendment Bill
Transparency
Governance
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Application of Principles
Department of Transport
Make the Act universal in application Increase
limit for all passengers
Equity
Ensure compensation for victims /their families
Emotional Shock General Damages/ Pain and
suffering Contingency Payment System
Fairness
Transparent system of compensation Capping
General Damages and Income/Support Provide
Medical Tariffs Specified Funeral Cover
Transparency
Structure Appointment of Chairperson and
CEO Abolish Executive Committee
Governance
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Key Principles
Department of Transport
Equity Makes the Act universal in application Align Act with Section 9 (1) of Constitution which protects the rights to equal protection and benefits Increase limit for passengers - Public Transport - Lift clubs
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Key Principles
Department of Transport
Fairness Ensure reasonable compensation for victims and their families Emotional Shock Compensation for emotional shock should be directed to road accident victims and their families and not to secondary victims General Damage Place medical threshold on access to general damages to ensure those who are seriously injured are compensated to adjust their lifestyle
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Key Principles
Department of Transport
Fairness Continued Ensure reasonable compensation for victims and their families Contingency Payment System Remove link between contingency payment system and victims compensation so that victims benefit more than other parties
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Key Principles
Department of Transport
Transpa-rency Provide for a transparent system of compensation allowing for greater efficiency Capping General Damages and Income/Support Transparent system based on maximum compensation limited only by proportion of fault Method of payment will be regulated to allow for decision regarding payment method whether installments, lump-sum or undertakings to be reasonable whilst financially sound
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Key Principles
Department of Transport
Transpa-rency Continued Provide for a transparent system of compensation allowing for greater efficiency Provide Medical Tariffs Allow for certainty, introduce transformative measures and provide acceptable payment schedules Specified Funeral Cover Provide certainty on level of compensation and expedite process
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Key Principles
Department of Transport
Gover-nance Ensure RAF governance is in line with Public Finance Management Act and Protocol on Corporate Governance Abolish Executive Committee
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Department of Transport
Way forward
Key principles and proposals presented here
address the concern of the various stakeholders
whilst taking forward the objectives that
Government had set itself through this Bill.
Passage of these amendments, whilst not solving
all problems faced by the RAF, is a necessary
step in turning the RAF around. We thank you
for your continued participation and assistance
in this process Nonkululeko Msomi Deputy
Director-General Department of Transport