The Road Freight Association (RFA) believes that the Road Accident Fund (RAF) must cover foreigners who are third parties in crashes in South Africa and perhaps a better set of rules relating to compensation should be devised before excluding people from cover.
RFA chief executive officer Gavin Kelly said the RAF appeared to be trying to change its responsibilities towards innocent third parties caught up in crashes through the actions of other parties due to very sketchy reasoning.
Kelly said among the RAF’s woes had been exorbitant amounts paid to foreigners due to a flawed calculation for compensation, which had drained its resources and raised concerns about its sustainability as a fund.
Kelly was responding to the news that the RAF has put forward a new draft proposal to parliament which seeks to bar foreign nationals from accessing compensation from the fund, a move that has been defended by the spokesperson for the fund, McIntosh Polela, who cited the need to align with practices adopted in other countries.
According to Polela, the essence of the new bill is to maintain a standard protocol that is commonly observed internationally. He emphasised that the bill was currently undergoing parliamentary review, where its fate would ultimately be determined. He stressed the importance of foreign nationals seeking alternative methods to ensure finance and support if they are involved in an accident in South Africa.
He stressed the principle of parity, highlighting that if the situation were reversed he would need to seek adequate insurance in the event of relocating to a foreign country.
The basis of the RAF is that – through fuel sales (and thus the “purchase” of cover via the RAF through the fuel levy component) – any (and all) persons who buy fuel receive this cover in South Africa. This system was introduced to replace the third party disc insurance.
Said Kelly: “In other countries the Yellow Card system is required for South Africans as there is no fuel levy. Perhaps the correct answer is to close the RAF and return to the disc system (underwritten by reputable insurers) and foreigners purchase the Yellow Card.”
In this proposed bill draft the RAF is also seeking to amend its requirement to pay out successful claimants in one lump sum, preferring to pay it out in tranches over a period.
