RAF Payment Problems

RAF Payment Problems can also be referred to as Problems with Road Accident Fund (RAF) Claims.

RAF struggling financially

Back in 2015, a media statement declared that the RAF was in “dire financial straits”. Unfortunately, the situation has continued to deteriorate.

Currently, the RAF owes more than R17.2 billion in a backlog of unpaid claims.

RAF still settling claims – but legal assistance is key

Despite its on-going financial problems, the RAF is still compensating road accident victims. Find out more about some of the notable RAF claim payments made recently.

Increasingly though, it’s necessary to sue the RAF for failure to settle claims fairly and on time.

In fact, court rulings in plaintiffs’ favour are sometimes being made in the complete absence of RAF representatives. This is despite appropriate notice being given and the right processes being followed.

Delays in settlement of RAF claims

It commonly takes from two to five years for a RAF claim to come to trial and be finalised.

Even once an approved court order has been issued, expect delays.

In theory, the RAF pays approved claims within 180 days.

In practice, claimants are experiencing delays as long as a year.

What contributes to such long delays?

Abnormally long delays are due to the Fund’s on-going mismanagement and financial difficulties – along with an extra backlog caused by the 2020 lockdown.

The system used by the RAF to award compensation also adds to delays.

Under the current RAF policies, it’s necessary to determine the percentage of each driver’s liability for an accident before the RAF determines the compensation to award a claimant. This makes processing claims a lengthy process.

Another issue with the current RAF policy is that claims of R100,000 or less are paid out first. This means that those entitled to large settlements from the fund will have to wait the longest to be paid.

Sometimes this means that those who need the cover most are the last to get it.