Question NW156 to the Minister of Transport
27 February 2023 - NW156
Nolutshungu, Ms N to ask the Minister of Transport
(1)Whether he can furnish Mrs N J Nolutshungu with a progress report on the state of the Road Accident Fund (RAF) in terms of the (a) total number of cases that were finalised and paid out in 2022 and (b)(i) number of cases that are still to be paid out and (ii) the total value thereof; if not, why not; if so, what are the relevant details; (2) whether all the cases that the RAF has been taken to court by claimants have been settled; if not, what is the position in this regard; if so, what are the relevant details; (3) what amount is needed by the RAF to settle all outstanding claims? NW161E
Reply:
(1) The Road Accident Fund (RAF) (a) has finalised and paid a total of 179 349 claims for the period 1 January 2022 to 31 December 2022 (b)(i) as at 10 February 2023 a total of 50 133 claims must still be paid out; and (ii) The total value of claims that are still to be paid out was R15 billion as of 10 Feb 2023. These are payments that are requested but not yet paid, which will be paid once all essential internal validations have been performed to ensure a valid and complying payment. This is also subject to availability of cash resources.
(2) not all the cases where the claimant has served summons on the RAF have been settled as at 31 January 2023 a total of 335 017 claims were in various pre-litigation and litigation stages;
335 017 cases at various stages of litigation. Not all cases can be settled, because most of the claims are overstated and lawyer’s gain more, the further a matter is dragged i.e., positive link between the time it takes to settle a claim and the costs.
(3) The value of claims which are yet to be settled is quantified as part of the claims administration process. The process considers validations & verifications and quantum determination. It is only after these processes are finalized that an estimate of the value of a claim is determined. However, at this point the RNYP is R15 billion. The liability was at R28 billion at the end of 2020/2022 financial year.