Amendment of the Department of Transport Road Accident

Amendment of the Department of Transport Road Accident

Amendment of the Department of Transport Road Accident Fund Act PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE 8 th September 2004 Department of Transport Key Processes Equity Amendment Process Fairness Transparency

Governance Competency RAF Governance Efficiency Fraud and corruption Consultation Future of the RAF Policy changes Restructuring Department of Transport Current Bill before Parliament

Objective RAF Amendment Bill 2003 RAF Amendment Bill (2004) Parliament resolved to continue with all Bills tabled preelections Objective of Bill to limit liability of RAF Objective remains unchanged Proposed corrections and improvements based on submission

and representation made in Oct Nov 2003 Ethos of proposed changes is to provide for universal application of Act to all road users Department of Transport Current Bill before Parliament Details RAF Amendment Bill 2003: Portfolio Committee Recommendations RAF Amendment Bill (2004)

Corrections to acceptable clauses Liability in term of medical tariffs Liability linked to medical tariffs, transformative objections and payment schedules Limit liability wrt nonresidents Make Act universal in its application Exclude liability wrt emotional shock of secondary victims

Remains unchanged Department of Transport Current Bill before Parliament RAF Amendment Bill 2003 Corrections to acceptable clauses continue RAF Amendment Bill (2004) Mediation and arbitration Mediation and arbitration processes are first

interventions? Deductibility of Collateral Damages Proposed cap may necessitate reliance on private insurance? Department of Transport Current Bill before Parliament Amendment Bill 2003 Improvemen Compulsory provision of ts to unmedical undertakings acceptable clauses Amendment Bill 2004 Regulated method of

payment to ensure reasonableness (Fund to determine payment method subject to guidelines in Act). Provision of compensation for Limitation on liability will income and general damages in focus on capping liability the form of installments and not postponement of liability. Transitional arrangements Removed Department of Transport Current Bill before Parliament

Amendment Bill 2003 Improvemen ts Amendment Bill Amendment Bill 2004 Regulated level of funeral compensation RAF legal fees excluded from Contingency Fees Act, 1997? Department of Transport Key Principles underpinning the Amendment Bill

Equity Fairness Transparency Governance Amendment Bill Department of Transport Application of Principles Equity Fairness Make the Act universal in application Increase limit for all passengers Ensure compensation for victims /their families Emotional Shock

General Damages/ Pain and suffering Contingency Payment System Transparency Transparent system of compensation Capping General Damages and Income/Support Provide Medical Tariffs Specified Funeral Cover Governance Structure Appointment of Chairperson and CEO Abolish Executive Committee Department of Transport Equity

Key Principles Makes the Act universal in application Align Act with Section 9 (1) of Constitution which protects the rights to equal protection and benefits Increase limit for passengers - Public Transport - Lift clubs Department of Transport Key Principles Fairness Ensure reasonable compensation for victims and their families Emotional Shock: Compensation for emotional shock should be directed to road accident

victims and their families and not to secondary victims General Damage: Place medical threshold on access to general damages to ensure those who are seriously injured are compensated to adjust their lifestyle Department of Transport Key Principles Fairness Ensure reasonable compensation for Continued victims and their families Contingency Payment System: Remove link between contingency payment system and victims compensation so that victims benefit more than other parties Department

of Transport Key Principles Transpa- Provide for a transparent system of compensation allowing for greater efficiency rency Capping General Damages and Income/Support: Transparent system based on maximum compensation limited only by proportion of fault Method of payment will be regulated to allow for decision regarding payment method whether installments, lump-sum or undertakings to be reasonable whilst financially sound Department of Transport Transparency Continued

Key Principles Provide for a transparent system of compensation allowing for greater efficiency Provide Medical Tariffs: Allow for certainty, introduce transformative measures and provide acceptable payment schedules Specified Funeral Cover: Provide certainty on level of compensation and expedite process Department of Transport Governance Key Principles Ensure RAF governance is in line with Public Finance Management Act and Protocol on Corporate Governance Abolish Executive Committee

Department of Transport Way forward Key principles and proposals presented here address the concern of the various stakeholders whilst taking forward the objectives that Government had set itself through this Bill. Passage of these amendments, whilst not solving all problems faced by the RAF, is a necessary step in turning the RAF around. We thank you for your continued participation and assistance in this process Nonkululeko Msomi Deputy Director-General Department of Transport

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