RAF sheds light on new strategy of settling claims and reducing backlog
The Road Accident Fund (RAF) said that the new approach would ensure that the fund continued to execute its constitutional mandate of administering claims through a streamlined and efficient process.
CAPE TOWN - The Road Accident Fund (RAF) has shed some light on its new strategic objective of settling claims within 120 days and reducing the claims backlog.
This as the government agency embarks on its transformation journey.
The RAF issued a minimum requirements directive in March this year, informing plaintiff attorneys and claimants of the list of compulsory documents required as part of the lodgment process.
It said that the new approach would ensure that the fund continued to execute its constitutional mandate of administering claims through a streamlined and efficient process.
CEO Collins Letsoalo said that the RAF had experienced a number of serious challenges over the years.
"Which included a highly litigious and ineffective operating model, an unsustainable funding model and an inadequate legislative framework for sustainability and compounded by a lot of motor vehicle accident rates."
Letsoalo said that the best way to deal with this problem was to try and reduce the accident rate in the country.
"But it has not been easy for the state given the road safety record of South Africa. As a consequence, the claims have to wait an average of 1,475 days for that claim to be settled. Further, the funds spent are a significant amount of the fuel levy and high administrative cost."
Letsoalo said that the RAF collected R43 billion in fuel levies every year.
"R17 billion is spent on administrative costs and R10.6 billion of that goes to legal fees. I must emphasise here that between R6 billion and R7 billion of that amount is spent on plaintiff attorneys, which means that these are claimants' costs."