50ᶜ more for road fatalities and casualties

The Road Accident Fund is currently has a funding shortfall of R98 billion. To remedy the situation, Minister of Finance, Nhlanhla Nene mentioned in his budget speech that he will be adding 50c a litre to the road accident fund fuel levy. The Road Accident Fund compensates people who are injured or lost their lives as a result of road accidents.

According to the CEO of Road Accident Fund, Dr. Eugene Watson, the fund currently raises R21-billion a year from the levy; the 50c increase will raise the annual revenue to R31-billion.

The additional 50ᶜ is going to be a great relief

Dr Watson added that for the past three decades the Road Accident Fund has been technically insolvent because they provided for claims which they did not have money to pay for. For the past two years they’ve been working on the transformation process which worked out very well. The fund has clean audit and is more productive as a result of the transformation. In the last 10 months they’ve been avoiding to prepare claims until they have money on hand to provide for the claims. With this strategy people do not have to wait longer for payments.

The finance Minister’s fuel levy increase will come into effect from April 1.


This article first appeared on 702 : 50ᶜ more for road fatalities and casualties


Recommended

by THE NEWSROOM
Read More
Major medical breakthrough: New gene pegged as cause of heart attacks in youth

Major medical breakthrough: New gene pegged as cause of heart attacks in youth

This is being called the biggest medical advancement in South African cardiology since Dr Chris Barnard's first heart transplant.

Parents urged to check tertiary institutions are legit before registering kids

Parents urged to check tertiary institutions are legit before registering kids

The Council on Higher Education says parents need to be wary of the increasing number of fly-by-night tertiary institutions.

New app to detect hearing loss

New app to detect hearing loss

University of Pretoria has developed a new app which uses a smartphone to detect hearing loss.

What we can expect from SABC after inquiry consolidates

What we can expect from SABC after inquiry consolidates

SABC's leadership and parliament has come under fire since the inquiry into the board's fitness to hold office.

LISTEN: Radio veterans, Gordhan, sports stars, celebs say bye to John Robbie

LISTEN: Radio veterans, Gordhan, sports stars, celebs say bye to John Robbie

John Robbie's 30-year run in radio has come to an end with friends, callers and colleagues wishing him a heartfelt goodbye.

2016 news wrap: A look back at the stories that grabbed SA's attention

2016 news wrap: A look back at the stories that grabbed SA's attention

Barry Bateman spoke to Stephen Grootes to unpack the meaning behind the stories that dominated the headlines in 2016.

Popular articles
Social media give President Ramaphosa the nod

Social media give President Ramaphosa the nod

Social media reacts with love and hope to President Ramaphosa's maiden State Of the Nation Address.

‘Maimane, Malema will find Ramaphosa harder to deal with than easy-target Zuma’

‘Maimane, Malema will find Ramaphosa harder to deal with than easy-target Zuma’

Afternoon Drive’s Stephen Grootes interviews Senior Research Associate at the Institute for Security Studies Judith February.

EFF's walk out was bizarre - Baleka Mbete

EFF's walk out was bizarre - Baleka Mbete

Speaker of Parliament Baleka Mbete shares her views on the future of Parliament and the readiness for Sona 2018

Hawks video shows fugitive Ajay Gupta leaving SA

Hawks video shows fugitive Ajay Gupta leaving SA

The Hawks are in possession of video footage showing Gupta, wanted in connection with Vrede dairy farm scandal, leaving SA.

Hope Ramaphosa: Cyril never lifted a finger to me, he wouldn't beat a woman

Hope Ramaphosa: Cyril never lifted a finger to me, he wouldn't beat a woman

Cyril Ramaphosa's ex-wife says abuse allegations spread by EFF leader Julius Malema are an attempt to tarnish his reputation.