Road Accident Fund turnaround strategy reduces legal costs by 75 percent

Cabinet says it has noted the Road Accident Fund (RAF) turnaround strategy which has resulted in major improvements in the settlements of claims within 120 days and reduced legal costs by 75 percent.

The strategy has also seen a reduction of medical costs from R3.6 billion in the 2019/20 financial year to R2.1 billion in the 2023/24 financial year.

Cabinet, in a statement on Monday, said it had received a briefing on the implementation of the turnaround strategy for the RAF, aimed at simplifying the funds system, while also improving the administration of benefits and payouts to accident victims.

Cabinet noted that a key intervention has been the launch of the RAF contact centre which provides a platform for RAF claimants to have access to their claims information without having to solely rely on their legal representatives.

The platform also allows claimants the opportunity to verify the payments made by RAF to their legal representatives.

"The interventions also led to cumulative legal costs savings of over R23 billion in the three years of implementing the strategy. Moreover, the strategy interventions resulted in the reduction of claims paid to claimants/ short term liability to R9.3 billion for the period ending 31 March 2023," Cabinet said in a statement.

Cabinet was also updated on legislative amendments to the current RAF Act, which are at an advanced stage.

"The RAF Amendment Bill will be considered by the 7th administration of government. The bill is aimed at refining the benefits and the payment of certain products in annuities and making it equitable," Cabinet said.

(With Inputs from South African Government Press Release)