OWN CORRESPONDENT, Johannesburg | Wednesday 9.45PM.
CABINET on Wednesday approved a judicial commission of inquiry that will investigate the possibility of launching a viable system of compensation for victims of road crashes.
Announcing the results of a fortnightly Cabinet meeting, Transport Minister Mac Maharaj said a new system will be the most efficient way of dealing with a financial crisis in the Road Accident Fund, where the deficit is growing by almost R1-billion a year, as well as achieving an equitable and affordable method of compensating crash victims.
The RAF has an accumulated deficit of R7,2-billion, despite three increases in the petrol levy over the past 18 months. Some 20,2% of the fund’s output is taken up in settlement costs — most of which go to legal cost — 18,3% go to medical expenses and 19,3% for loss of earnings compensation.
Currently settlements are delayed on average between 34 and 46 months, and the ceiling for compensation for a passenger in an accident was R25000.