PROPOSED AMENDMENTS

ROAD ACCIDENT FUND AMENDMENT BILL

[B 64-20031

 

CLAUSE 1

1. Replace sections 17(4)(b) and (c):

 

b) includes a claim for future loss of income or support, the Fund or an agent shall [be entitled] , after furnishing the third party in question with an undertaking to that effect or a competent court has directed the Fund or the agent to furnish such undertaking, [to] pay the amount payable by it or the agent in respect of the said loss, by equal annually adjusted inflation related instalments in arrear [as agreed upon.]; and (

(c) includes a claim for non-patrimonial loss, the Fund or an agent must after furnishing the third party concerned with an undertaking to that effect or a competent court has directed the Fund or the agent to furnish such undertaking, pay in equal annually adjusted inflation related instalments over a period not exceeding seven years such portion of the amount payable by the Fund or the agent in respect of such loss, as exceeds the greater of R15 000 or 40 per cent of the amount payable by the Fund.

2. Insert new subsection 17(4A):

4A. Notwithstanding subsection (4)(a), if the claim contemplated in that subsection does not exceed the amount of R25 000 the claim shall be paid by way of a lump sum.

3. Insert new subsection 17(4B):

4B. The amount payable in instalments referred to in subsection 4(b) and (c) shall be exempted from taxation.

 

CLAUSE2

1. Insert a new subsection 17A (2):

(2) The medical tariff contemplated in subsection (1) shall be prescribed by the Minister, after the proposed tariff has been published in the Gazette for comments.

2. Replace subsection 17B:

 

Collateral benefits in case of bodily injury or death

"17B.(1) Subject to section 1 of the Assessment of Damages Act, 1969 (Act No. 9 of 1996), where a third party is entitled to compensation in terms of section 17 for loss or damage suffered as a result of bodily injury or death, the Fund or the agent shall deduct from the compensation payable in terms of this Act all collateral benefits indemnjfyin2 the third party a2ainst bodily injury or death. except benefits which the third party proves to be legally reimbursable to the payer after compensation has been paid in terms of this Act.

(2) In order to make the deduction contemplated in subsection (1), the third party shall disclose to the Fund or a2ent all benefits from whatever source payable to the third party as a result of the bodily injury or death.".

 

CLAUSE 3

Replace section 1 8 (5) (a) and (b):

(5) (a) If a third party or the injured or deceased person concerned is not ordinarily resident in the Republic, the liability of the Fund or an agent to compensate the third party concerned for any loss or damage contemplated in section I 7 is limited to the amount determined by the Minister, on the recommendation of the Board, by notice in the Gazette.

(b) In determining the amount mentioned in subsection (a) the Minister must take into account the amount that such person would have received had such person been ordinarily resident in the Republic.

 

CLAUSE 5

Clause rejected

NEW CLAUSE

New clause to follow clause 4:

Amendment of section 24 of Act 56 of 1996

5. Section 24 of the principal Act is hereby amended by the addition of the following subsections:

"(7)(a) As an alternative to enforcing a claim by legal proceedings as contemplated in subsection (6), a third party may refer any dispute regarding the claim to arbitration.

(b) For the purpose of arbitration, the arbitrator shall be appointed by a2reement between the Fund and the third party.

 

(8)(a) Before any legal proceedings contemplated in subsection (6) or any arbitration proceedings contemplated in subsection (7) are commenced, the Fund and the third party shall endeavour to settle any dispute by way of mediation.".

 

CLAUSE 6

Clause rejected.

 

NEW CLAUSE

New clause to follow clause 5:

Application of Act

6. (1) The provisions of this Act apply to claims for compensation under section 17 of the principal Act submitted on or after the date of commencement of this Act.

 

CLAUSE 8

Replace Clause 8:

Short title and commencement

8. (1) This Act is called the Road Accident Fund Amendment Act, 2003.

(2) Sections 17 (4) (a) and 17A shall come into operation on a date determined by the President by proclamation in the Gazette.