The poor will benefit from a minimum benefit they do not currently enjoy under the new Road Accident Benefit Scheme.
South Africa’s poor track record when it comes to road traffic safety is a situation exacerbated by unroadworthy and illegal vehicles, reckless licensed and unlicensed drivers and an overall disregard for basic rules of the road.
One in 28 South Africans are claiming from and being paid by the RAF for injuries or loss as a result of a motor vehicle accident. This statistic underlines the importance of changing driving attitudes in this country and highlights the significance of the role of the RAF.
In the aftermath of a fatality or disability through a road accident, there is usually the desperate need for help for the victims and their families. This is where the RAF steps in and under the leadership of Dr Eugene Watson, chief executive officer since 2014, it has become increasingly better at its business.
“In light of the profoundly negative impacts that victims of road traffic crashes suffer from, from a health, vocational and social perspective, they not only require, but deserve to have their claims assessed and finalised in a speedy and efficient manner,” says Watson. Delays in claims finalisation prejudice victims and serve to increase the RAF’s liability, as historical trends have shown that generally, the later a claim is finalised the higher the liability to the RAF.
“The RAF resolved to place even greater focus on settling long outstanding claims while building its profile as an accessible organisation that proactively interacts with victims in a caring, supportive and solution-orientated way and where liability attaches to it, provides compensation in a time-efficient and cost-effective manner.”
According to Watson, the RAF registered 188 864 new claims and finalised 188 759 over its 2015/16 fiscal year, with claims expenditure increasing to a record R32-billion. The number of registered claims showed a sharp increase on the registrations in 2014/15, which underlines the promotion of accessibility to it as an entity, something the RAF has persistently strived to implement.
During 2015/16, the RAF finalised an average of 715 claims each working day of the year compared to 697 in the previous year.
“The many successes we experienced came with numerous challenges,” says Watson, “some of which included exacerbated financial constraints and numerous legal battles. This should have caused us to buckle and falter, but the organisation and its staff remained resilient and succeeded.
“The hard work put in over recent years has earned the RAF great support from government, communities and stakeholders, but has also boosted the image and reputation of the organisation.
Community mobilisation
“We continue to take our services to the doorsteps of previously marginalised communities with our community outreach programme, RAF on the Road, being an exemplary service delivery project, having touched 53 979 lives and settled claims to the value of R1.1-billion since its inception in 2012.
“The extensive community mobilisation that precedes such events, as well as our increased media presence, has empowered millions of road users with knowledge of the RAF and its services.
“While on the one hand we are meeting thousands of claimants through various RAF engagements and collaborations with other stakeholders, our call centre and virtual contact centre also continue to make strides in attending to claimants’ queries,” says Watson.
“We ensure optimal capacity in terms of people and performance by recruiting, remunerating, managing and retaining skilled staff, identifying talent and managing succession, training and developing, while managing outliers and recognising and rewarding performers within the organisation.”
The RAF is still in the midst of plugging the many loopholes that over the years have made the organisation vulnerable to abuse by many stakeholders and employees.
Its legal and forensic teams have “relentlessly” pursued fraudsters and those stealing from the RAF over the past year, and a large number of attorneys have been struck off the roll, with doctors and police officials arrested and imprisoned, or serving suspended sentences for RAF fraud-related matters. R424-million worth of fraudulent claims was identified before any payment was made and 136 people were arrested for fraud against the RAF.
Unsustainable scheme
The Statement of Financial Position reflects the extent to which the fund remains undercapitalised and it remains noteworthy that the RAF has been technically insolvent since 1981, since the business has never been capitalised appropriately.
Legislation to establish the new Road Accident Benefit Scheme (RABS) to provide for affordable and equitable support for those injured in road accidents will be tabled in the foreseeable future, according to Watson.
Once the legislation has been passed, the levy will be assigned to the new scheme, as government has long accepted that the RAF is an unsustainable scheme of arrangement where compensation paid far outstrips the income allocated to the Fund, where many who contribute to the RAF’s income are excluded on the basis of poverty and the extent of negligence, where administration is not cost-efficient, and where the desired objective of supporting crash victims is not fully achieved.
The RABS will see the open-ended liability the RAF dispensation imposes on the country wound down and a solvent arrangement introduced. It will benefit many people who have not had access to the RAF, but the payoff will be a rationalisation of what is paid out at the upper end. Poor people will benefit from a minimum benefit they do not currently enjoy.
“Some may argue that a minimum benefit is low,” affirms Watson, “but it will be higher than the current minimum, which is often nothing for some. Socio-economic and health benefits of RABS far exceed the RAF dispensation and long-term outcomes are likely to be much better.”
Under RABS, the focus will essentially be on the immediate assistance of an injured road crash victim, with payments made directly to claimants, medical and healthcare service providers on top of other required future support and rehabilitation.
“This will be an easier and more cost-efficient change and monies spent on intermediaries will now be channelled to claimants. While RABS will usher in change, the winding down of the RAF will take many years and see at least R140-billion of RAF claims processed and honoured over time. Rationalising benefits to match available funding through limits and time frames is a necessary step for viability, but is certainly not a popular one — but in all things there must be informed limits.
Restoring dignity
“There are no limits, however, on our activating accident awareness and campaigning to reduce accidents on South Africa’s roads,” says Watson. “This is not a seasonal missive. The RAF works 365 days a year, with particular emphasis on the peak seasons like Easter and Christmas. We are always busy.
“If we don’t help the victims of crashes, they will become poor. We have seen this, where successful, educated working professionals are involved in an accident that leaves them para- or quadraplegic and at the mercy of family members who are not in a position to give them the proper care. This is where we step in.
“We constantly teach our staff that as they walk around the building, that they see claim files but there is a person behind the paper. Restoring dignity as soon as possible makes a real difference.”