Introduction

The Road Accident Fund (”RAF”) is a juristic person established by an Act of Parliament, namely, the Road Accident Fund Act, 1996 (Act No. 56 of 1996) as amended (”RAF Act”). It commenced its operations on 1 May 1997 assuming, at the time, all the rights, obligations, assets and liabilities of the Multilateral Motor Vehicle Accidents Fund (”MMF”).

Predecessors

Prior to 1997, the system of compulsory motor vehicle accident insurance was governed by the following legislation:

• Motor Vehicle Insurance Act, 1942 (Act No. 29 of 1942);
• Compulsory Motor Vehicle Insurance Act, 1972 (Act No. 56 of 1972);
• Motor Vehicle Accident Act, 1986 (Act No. 84 of 1986);
• Multilateral Motor Vehicle Accidents Fund Act, 1989 (Act No. 93 of 1989).

Business of the RAF

The RAF provides compulsory cover to all users of South African roads, resident or foreigner, against injuries sustained or death arising from accidents involving motor vehicles within the borders of South Africa. This cover is in the form of indemnity insurance to persons who cause the accident, as well as personal injury and death insurance to victims of motor vehicle accidents and their families.

Socio-economic Role

The role of the RAF is to re-integrate victims of road accidents into society from a health and economic perspective and protect wrongdoers and their families from financial ruin. This is done by the RAF paying the medical and related services costs required to restore accident victims to health, compensating the victims or their families for income or support lost as a result of the accident and indemnifying the wrongdoer from liability. In addition, the RAF pays general damages to accident victims, which represent compensation for pain and suffering, loss of amenities of life, disability and disfigurement, as well as funeral costs to families in circumstances where the victim of the accident sustains fatal injuries.

Ownership and Control Structure

The Minister of Transport exercises an oversight role over the RAF on behalf of the Government of the Republic of South Africa.