RAF amendment changes have far-reaching implications

The changes to the Road Accident Fund (RAF) Amendment 2008, has far-reaching implications for road transport operators, sparking a number of legal challenges, says risk advisor and insurance company, Aon South Africa. The lack of clarity since the changes, along with the absence of any legal precedents, has lulled road transport users and operator into a false sense of security, says Aon’s Andre de Sart. “The key changes in the RAF amendment are that it now makes it the responsibility of each individual to purchase their own appropriate additional cover in terms of income protection, medical costs and disability,” he advises. According to him, this raises the question whether liability insurance for the transport operator is even necessary. De Sart says it is, particularly if operating outside of South Africa’s borders. “Furthermore, loss of income and support are capped at just over R200 000.”