Is a third-party insurance in place of the Road Accident Fund a better idea?
The transport department, on Wednesday, announced that it intends to scrap the embattled Road Accident Fund (RAF) for the Road Accident Benefit Scheme (RABS) which has been under consideration since 2016.
The RAF has been plagued by financial troubles and often prolonged claims finalisation, as well as high administrative costs.
The scheme which seems closer to being signed into law, is expected to work under a no-fault basis and will apparently improve the management of compensating road accident victims.
Gushwell Brooks, standing in for Karima Brown, spoke to Justice Project South Africa's chairperson Howard Dembovsky to find out more.
Dembovsky explains why the RABS is a worrisome option.
From a road safety perspective - the road accident fund works on a fault basis and while it indemnifies the party who is at fault, it does not give them benefits. The road accident benefit scheme takes that in turns it on its head so if you are a drunk driver and get injured in a crash, you are entitled to claim benefits.Howard Dembovsky, Chairperson - Justice Project South Africa
That in my view is a great big leap backwards.Howard Dembovsky, Chairperson - Justice Project South Africa
Dembovsky suggests that government do away with the RAF and RABS and make third party insurance compulsory in South Africa, by handing over the reigns to experienced insurance companies.
Government has proven beyond any reasonable doubt, that it is not capable of running an insurance company. Perhaps it is time for them to hand over the reigns to insurance companies whose business it is to deal with negligence claims.Howard Dembovsky, Chairperson - Justice Project South Africa
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This article first appeared on 702 : Is a third-party insurance in place of the Road Accident Fund a better idea?
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