Cabinet applauds major improvements in RAF turnaround strategy


The Cabinet of South Africa has acknowledged the effectiveness of the Road Accident Fund (RAF) turnaround strategy, leading to significant enhancements in claim settlements within 120 days and a 75 percent reduction in legal expenses.

There has been a notable decrease in medical costs, dropping from R3.6 billion in the 2019/20 fiscal year to R2.1 billion in the 2023/24 fiscal year.

In a statement issued on Monday, the Cabinet disclosed that it has been briefed on the RAF’s turnaround strategy implementation, aimed at streamlining the fund’s processes while enhancing the management of benefits and disbursements to accident victims.

According to the statement, one pivotal aspect of this strategy has been the establishment of the RAF contact centre, offering claimants direct access to their claim information, eliminating the sole dependency on legal representatives. This platform empowers claimants to validate the payments made by the RAF to their legal representatives.

“The interventions also led to cumulative legal cost savings of over R23 billion in the three years of implementing the strategy. Moreover, the strategy interventions resulted in the reduction of claims paid to claimants/short-term liability to R9.3 billion for the period ending 31 March 2023,” the Cabinet said in a statement.

The Cabinet has also been updated on legislative amendments to the current RAF Act, which are at an advanced stage.

“The RAF Amendment Bill will be considered by the 7th administration of government. The bill is aimed at refining the benefits and the payment of certain products in annuities and making it equitable,” Cabinet said.


Compiled by Warren Hawkins