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​RAF ACT

  • The Road Accident Fund Act 56 of 1996 came into operation on the 1 May 1997 (OLD ACT)

  • The Road Accident Fund Amendment Act, 2005 came into operation on the 1 August 2008 (NEW ACT )

  • The object of both Acts is to pay compensation in accordance with applicable legislations for personal loss or damage wrongfully caused by the driving of a motor vehicle;

  • The MVA system indemnifies the driver/owner of a motor vehicle against liability incurred as the result of the loss/damaged wrongfully caused to another person in road accidents.

​AMENDMENT ACT

The Road Accident Fund (RAF) is a creature of statue which was governed by the RAF Act 56 of 1996 up until the 31 July 2008. The RAF Act of 1996 was amended and as a result the RAF Amendment Act 19 of 2005 came into operation on the 01 August 2008.

The RAF Amendment Act of 2005 didn’t change the RAF Act in totality; it only amended and deleted certain sections of the Act. The most important changes are the following:

  • The limitation on passenger claims has been removed.

  • The members of the same household exclusion have been removed.

  • The passenger for reward on motorcycle exclusion has been removed.

  • General damages are only payable if a serious injury was sustained.

  • Medical expenses for emergency treatment will be paid according to the HPCSA Tariff.

  • The annual loss irrespective of the actual loss for loss of earnings and loss of support claims is limited to R160 000.00 per annum. This amount is increased quarterly by inflation.

The reasons why the RAF Act of 1996 was amended are the following:

  • To sustain the existence of the RAF.

  • To simplify the claims procedure.

  • Accessibility.

  • To ensure financial stability of the RAF.

The RAF compensates the victims of motor vehicle accidents for damages suffered as result of bodily injuries sustained, or for loss suffered as result of the death of someone due to the negligent driving of a motor vehicle.

From the above it is clear that the RAF will be liable where the:

  • Identity of the negligent driver or of the owner of the motor vehicle who caused the accident has been established (IDENTIFIED CLAIMS);

  • Neither the identity of the negligent driver or owner of the motor vehicle who caused the accident has been established (HIT & RUN CLAIMS).