The Road Accident Fund (RAF) is a statutory body that, in terms of the provisions of the Road Accident Fund Act,1996 (Act No. 56 of 1996) (“the Act”) as amended, exists to provide cover to all persons (referred to in the Act as a “third party”) for loss or damage resulting from the death or bodily injury caused by the negligent driving of motor vehicles within the borders of the country.
The Act also serves to indemnify an insured driver or owner of a motor vehicle (this is the person who was negligent) against liability incurred as the result of loss or damage wrongfully caused to the third party. The RAF only indemnifies the insured driver against claims for damages in respect of bodily injury sustained or the death of a breadwinner. The indemnity does not apply to claims for damage to motor vehicles, personal affects, buildings, luggage or goods conveyed in a vehicle, etc.