Have a look...
CAPE TOWN — The long-awaited draft policy on the restructuring of the Road Accident Fund on a no- fault basis will be published by the Department of Transport in next Friday’s Government Gazette.
The draft policy — which has large implications for the legal and health professions — was tabled in Parliament yesterday by Deputy Transport Minister Jeremy Cronin, who said the public would have until April to comment and that the draft legislation was likely to reach Parliament only next year.
The new Road Accident Benefit Scheme will have defined benefits and rules which will apply universally to all road accident victims, regardless of fault, except that those driving under the influence of alcohol would not qualify for compensation, said the department’s project leader for the fund, Terence Gow.
Under the policy, accident victims would not have a common law right to sue for damages. Instead of making cash payments, the new scheme would pay for medical care, though there would be thresholds and ceilings to the benefits to make it affordable. Some benefits would be paid only after a waiting period of three months, to encourage people to go back to work.
Certain types of injury, such as self-inflicted ones, would be excluded and there would be no payments for pain and suffering associated with serious injuries, or for the emotional shock of secondary victims.
An income support benefit derived from a formula would cover lost income and the loss of earning capacity. A family support benefit would be paid when the breadwinner was killed in a road accident.
No lump sum payments would be made and the funeral benefit would be flat-rated instead of being based on income, as at present.
To eliminate fraud and “double dipping”, deductions would be made for collateral benefits received from other state-funded social security schemes such as the Unemployment Insurance Fund, disability grants and workmen’s compensation.
It is estimated that allowing for administration costs of 10% of benefit payments, the scheme would need about R13,6bn a year (at 2009 values), to be funded by a fuel levy of 59,2c/l or 68,2c/l , depending on the level of consumption of fuel.
Motorists now pay 64c/l as a contribution to the Road Accident Fund, (giving a total revenue of about R8,4bn in 2008-09).
Secondary sources of funding have also been proposed, including surcharges on the registration fees of light delivery vans, panel vans, trucks, buses and minibus taxis, because they pose greater risks. Surcharges would be placed on all traffic fines, as well as the sale of alcohol.
The scheme would be fully funded instead of the current pay-as-you- go fund, which has outstanding claims of R41bn. Funds would be set aside for preferred public and private health service providers, who would not be free to charge any fees they liked.
http://www.businessday.co.za/articles/C ... x?id=92856
On the surface it loks like a great idea. In fact any idea is better then the current RAF.
My concerns are the items highlighted!
