Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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I get a number of e-mails from other attorneys’ clients asking me about whether it is true that the Road Accident Fund has a cash flow crisis. I am surprised to get these e-mails, because it has been well reported in the media and anybody who do a Google search on phrases such as “RAF cash flow crisis” or “Road Accident Fund payment problems” will find a number of media and other articles indicating these issues. The problems began in about August 2014, although there had some years previously also been issues. Previously when the Road Accident Fund had these cash flow problems they made monthly payments by instalments in all big cases, paying some of them off over 12 months.
What happens now is that payments are delayed with payments under R100 000,00 being prioritised by the Road Accident Fund and those settled for more than R1 million being put to the back of queue. I think that is wrong and that the more seriously injured you are, the more quickly you should be paid. The very fact that you are getting a big settlement means that your case is more serious than the person who is receiving R30 000,00, and it is a pity that the Road Accident Fund has taken this approach. I, in fact, have written a number of letters to the Executive Officer of the Road Accident Fund, Dr Eugene Watson, pointing out why I think that this is not the moral or correct approach, but unfortunately it does not appear that the Road Accident Fund wants to consider any other approach. The reality is that the Road Accident Fund does indeed have cash flow problems and in most cases there is nothing that your attorney will be able to do to get your payment made earlier. It is easy to say that we can call in the Sheriff of the Court and issue a warrant, but they ignore the fact that hundreds of attorneys have done that, there are thousands of outstanding warrants and they cannot practically actually enforce payment of all of them at the same time because they would exceed the money that the Road Accident Fund has in the bank, or has in assets in any event. The bottom line is, if you are waiting for a payment from the Road Accident Fund in your case that you do have to be patient and accept that on average, particularly if we are talking about a case that was settled for more than R1 million, you will be looking at about 4 to 8 months before you will receive payment.
Posted by Michael de Broglio on Wednesday 28-Oct-15
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Comments
Navin said:
on Tuesday 22-Mar-16 03:39 PM
Hi I see there aren't any other comments of the payment problems experienced with the RAF. Has the situation now stabilized. My claim was settled in Nov 2015 and I too have not heard anything since. The court order stated 120 days for the payment to be made. Has anyone else experienced this?
Nicky said:
on Monday 23-Nov-15 04:59 PM
The frustrating thing is that the RAF think that they're doing everybody a favour by actually making payments and what's even worse is that they're consider issuing of warrants "a selfish approach by some firms". A firm is by entitled to issue a warrant and I'm sure that this is only done in the best interest of clients and not to show some form of selfishness!
Sinead said:
on Friday 20-Nov-15 04:54 PM
There really can't be a cash flow crisis.
I really hope they start making more payments...
Elektra said:
on Friday 20-Nov-15 03:29 PM
It is absolutely pathetic. Some clients are in a financial burden due to a negligent driver, and after a lengthily trial still have to wait for payment. I cannot expect much as the RAF is a government Department and if you had to look up to the sky will see Zuma's new JET being the reason that we are so backlogged in payment and the RAF's cash flow crisis.
Joyce said:
on Friday 20-Nov-15 10:24 AM
I think it is a bit unfair for more seriously injured people that their payment is put at the back of the queue by the payer and I thin the payer does have payment problems as waits for pressure to be put on before making payment
Jolene said:
on Friday 20-Nov-15 09:37 AM
I cant see that the RAF will ever not have some kind of payment problem, we just have to deal with all the new excuses and work around them
Helen said:
on Friday 30-Oct-15 10:50 AM
Road Accident Fund is extremly slow with payments this year, the way RAF pay us now it is not excaptable, and at the end of the month when as per RAF staff they have target to pay out they make lots of mistakes with overpayments and paying us short.
Helen said:
on Friday 30-Oct-15 10:50 AM
Road Accident Fund is extremly slow with payments this year, the way RAF pay us now it is not excaptable, and at the end of the month when as per RAF staff they have target to pay out they make lots of mistakes with overpayments and paying us short.
Bianca said:
on Wednesday 28-Oct-15 10:13 AM
The struggle is extremely real with getting matters paid, working non-stop on following up on payments just to wait 8 months and sometimes longer to get the matter paid eventually. We just need to be patient and get the sheriff there asap to apply pressure.
Alexis said:
on Wednesday 28-Oct-15 09:27 AM
It is quite ridiculous as to how they are working at the moment and what they see as urgent, well in their case, easier. There is a reason why matters settle for so high and those should rather take priority as what if the client needs to be put in a home or needs constant supervision or needs to be in a special school.
Cornelie said:
on Wednesday 28-Oct-15 09:26 AM
One can just imagine where all the money go to as we are all paying for petrol it just does not make sense why they have a cash flow crises.
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!
