EFFORTS ARE CURRENTLY UNDERWAY TO REVISE THE LEGISLATION PERTAINING TO THE ROAD ACCIDENT FUND (RAF).
Introduction
During a session with Parliament’s Portfolio Committee on Transport, representatives from the Road Accident Fund (RAF) discussed their ongoing plans to revise the RAF Act. These proposed amendments are designed to enhance the efficiency and effectiveness of the RAF’s operations.
The briefing, which took place on Tuesday, 12 March, focused on updating the Committee about the progress made in implementing the RAF’s strategic turnaround plan. This update included outlining the RAF’s intentions to amend the legislation that governs its operations.
The attendees included members of the RAF board, such as Chief Executive Officer Mr. Collins Letsoalo, Deputy Minister of Transport Mr. Lisa Mangcu, and Mr. Chris Hlabisa, Deputy Director-General of the department.
Ms. Lorraine Francois, the Chairperson of the Board, highlighted to the committee that upon assuming their roles as a new board, they conducted a thorough assessment of RAF’s operational landscape. This assessment uncovered various challenges, particularly concerning financial sustainability and legislation that does not fully support the RAF’s mandate.
Ms. Francois noted that the fund has achieved financial independence with minimal reliance on government funding, and both the board and management are dedicated to implementing substantial transformations within the organization.
During its term in the 6th Parliament, the committee chose not to push forward with the Road Accident Benefit Scheme (RABS) Bill. Instead, they opted to make amendments to the Road Accident Fund Act.
The RABS Bill’s purpose was to replace the current Road Accident Fund Act and enhance the management of benefits and compensation for victims of accidents.
In a recent session, the leadership of the Road Accident Fund (RAF) informed the committee about their plans to introduce amendments to the RAF Act.
RAF’s CEO, Mr. Collins Letsoalo, stated that these amendments are intended to simplify the processes within the fund. He highlighted that many people struggle to navigate the current system.
To tackle the accessibility challenges in RAF’s services and information, RAF has launched a contact center. This center provides a platform for RAF claimants to access their claims information directly, reducing their reliance solely on legal representatives. One notable initiative introduced through the contact center is the “know your rights campaign,” which empowers claimants to verify the payments made by RAF to their legal representatives.
Signs of improvement
In its recent audit and management reports for the 2022/23 period, the Auditor-General of South Africa (AGSA) commended the Road Accident Fund (RAF) for its strategic focus on settling claims within 120 days, marking the first time this target has been achieved. While there is still progress to be made in ensuring all claims are settled within this timeframe, there has been a noticeable improvement in the overall turnaround time.
The RAF’s implementation of its 2020/25 Strategy has resulted in commendable achievements, as noted by the AGSA. The reports also highlighted enhancements in various areas including procurement, asset management, information technology, and performance information. Most notably, the RAF’s organizational performance has significantly improved from 57% in the 2019/20 financial year to an impressive 91.3% in the 2022/23 financial year.
by Sakhile Mokoena
Reference:
Mokoena, S. (no date) New efforts underway to Amend Road Accident Fund (RAF) legislation, New Efforts Underway to Amend Road Accident Fund (RAF) Legislation – Parliament of South Africa. Available at: https://www.parliament.gov.za/news/new-efforts-underway-amend-road-accident-fund-raf-legislation (Accessed: 15 March 2024).
