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.”