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Road Accident Fund Benefit Scheme

The Road Accident Fund Benefit Scheme, as we always refer to it as RABS, has already been approved in principle by the Cabinet.  It may be a matter of months, or hopefully longer before it becomes law.  In their efforts to get attorneys out of the system, the Road Accident Fund has basically devised a scheme to make sure that attorneys will not in any way become involved.  Payments are made directly to clients, so that would disincentivise any attorney from financing a case where there is no guarantee of getting paid, but in addition to that and more importantly so as to ensure that attorneys are not needed, they are going to move the whole scheme to a no fault basis. That means when you are to blame for an accident you will have a claim, just as you will have a claim when you are not to blame for the accident.  That in theory gets rid of attorneys but of course to introduce all of those extra cases and still pay them, you have to reduce the benefits!  

Put another way, because the guilty person will now have a claim, the innocent person will have a claim for far less than before.  One should be suspicious of any legislation that has the word “benefit” in it because normally the word is only used when in fact there are no benefits at all and that is pretty much the case here – there will be so few benefits applicable under the new Scheme that I doubt the majority of people will even go through the process, especially without the assistance of an attorney, of lodging a claim.  The loss of income for example is capped at about R50 000,00 compared to the R220 000,00 a year now, and there will be no money for pain and suffering no matter how serious the case is, there will be no lump sums if indeed you do qualify for a claim, you will receive your payments as a monthly amount.  The only type of person who would be happy with this is the drunk who drives through a red robot, crashes into another car, paralysing them and injuring himself.  In the past he would not have a claim, but now for everyone else’s benefit it has been either removed or drastically reduced, he or she will have a claim.  I have put forward a resolution to be heard at this year’s Law Society Annual General Meeting, motivating that the attorneys’ profession must spend a lot of money on an advertising campaign informing the public of what is about to happen to the contribution they make to the Road Accident Fund every time they purchase petrol or diesel.  I am certainly hoping that the members of the Law Society will approve the resolution and that the Law Society will tackle this issue.

Posted by Michael de Broglio on Wednesday 22-Oct-14 Share on Facebook   Tweet It

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Comments

Sorea  said:
on Wednesday 22-Oct-14 05:22 PM
All I can say is everybody should go and get an income protection insurance policy from a private insurancy company immediately. We can fight this and make sure the public is informed about where this system is going, but incase this actually becomes a reality, I think we should play it safe. There is no way that I will be able to cover my expenses with the aproximately R4 000.00 a month that they will then pay as a "benefit". And I am very careful to incur montly expenses. It is a farce and I cannot see how they will expect it to be useful to anyone.

Jade  said:
on Wednesday 22-Oct-14 03:48 PM
I have to agree that public awareness will be incredibly important. Perhaps a slot on Carte Blanche will start the ball rolling.

This is going to sound very pessimistic but I would also like to know how they would control this. Who will be the watchdog in this process? I can imagine that soon it will be commonplace that government friends who weren't even in an accident will get a nice little bit of money from the Road Accident Fund

Alexis  said:
on Wednesday 22-Oct-14 03:41 PM
Sad day when that comes to light and the law is changed. I feel that we do good for the people who need it and make sure that we get them what they deserve. This will not be the case if Attorneys are taken out of the deal.

Elektra  said:
on Wednesday 22-Oct-14 11:20 AM
I hope who ever enforces this bill is in a serious accident caused by a drunk driver and becomes a paraplegic, with a severe brain injury who cannot even feed himself, will loses his job, his wife will leave him and be placed in an institute where his children wont even come visit, and to top it all off only a R50 00.00 cap on probably a much higher earned salary.

Maybe then the realization of the work we do.

Angelique  said:
on Wednesday 22-Oct-14 08:51 AM
I am hoping for the same. However yesterday on the radio they were speaking about these 'benefits' and it seems like all is ready for it to be put in place. I think it is highly unfair, first and foremost robbing the public. Loss of income is capped at R 50 000 yet that is an amount that some people would make in a month - how on earth when they are paralysed can they be compensated that? Majority of people do not know much about the law. Secondly this legislation is taking away a job instead of creating one. What was the point of lawyers studying personal injury? Soon every kind of injury won't need a lawyer. Never mind the fact that the person who was drunk hopefully has a criminal record yet can still claim? Ignorant desperate people will be creating accidents based on the fact that they can get a monthly salary from the Road Accident Fund by being injured rather than working. Nice South Africa, nice! Yet another grant benefit for "everyone" with OUR money every time we fill up our cars.

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Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
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