RABS scheme impact

The proposed change in

this country’s third-party

insurance to the no-fault

Road Accident Benefit

Scheme (RABS) will have

no ramifications for road

transporters’ liabilities or

responsibilities, according

to Steve Cornelius of Indwe

Risk Services and special

risks adviser to the Road

Freight Association (RFA).

In terms of the new

scheme, funded by the

fuel levy, the claimant

claims directly from RABS

for benefits for medical

expenses, income support,

family support and funeral

benefits.

Similarly, said Cornelius,

payments were made directly

to claimants, medical and

healthcare service providers.

“The claimed advantages,”

he added, “are that it avoids

expensive litigation and

pays claims quicker. But the

claimant has to remember

that this scheme pays less

than the previous one.”

But the vehicle insurer

had no responsibility for any

part of the claim or payment,

Cornelius stressed. “And

his risk exposure is still the

same.”