Report of the Transport Portfolio Committee on the Road Accident Fund Amendment Bill (2003)

1. The National Department of Transport (NDoT) presented the RAF Amendment Bill (2003) to the Committee in October 2003. The main objective of the Bill is to alleviate the financial burden of the RAF by introducing measures that would assist with the cash flow situation of the organization.

2. The Committee conducted relatively extensive public hearings on the Bill as well as oversight visits to the head-office of the RAF, to the main claims processing office of the RAF in Johannesburg, and to the offices of personal injury lawyers, in order to familiarize ourselves with the context and challenges within which the proposed amendments were being tabled.

3. After considerable discussion and deliberation, the Committee agreed that some of the proposed measures, with slight amendments, were acceptable. In particular, those clauses of the Bill that:

a. Provided for the liability of the Fund in respect of hospital and treatment costs according to prescribed medical tariffs;
b. Limited the liability of the Fund in respect of claims of non-residents and non-citizens of the Republic;
c. Excluded the liability of the Fund in respect of claims for emotional shock sustained as a result of witnessing, observing or being informed of the bodily injury or death of another person.

4 However, in the course of our deliberations, the Committee found other clauses to be not suitable. Specifically those that:
a. Provided for monthly installments and not lump-sum payments in certain cases;
b. Provided for the mandatory resolution of disputes through compulsory mediation and arbitration.

5. Accordingly, on the 19^th November 2003 the Committee proposed to the NDoT that a scaled-down version of the Amendment Bill be drafted and adopted. On the 18^th February 2003, the NDoT reported back to the Committee that the Department agreed with the Committee's proposals.

6. Unfortunately, with the impending dissolution of Parliament, there is insufficient time to proceed effectively with the Bill. In the light of the wide-ranging public presentations at our hearings, and in the light of the agreement between the Committee and the Department, we hope that the incoming Parliament will be able to take the process forward with relative speed, and mindful of what has preceded.

7. The Committee also recommends that the new Parliament approaches the Bill with three other general considerations in mind:

a. Proceeding with the Amendment Bill should not detract from the need to address other urgent operational challenges to ensure the short-term sustainability of the RAF;

b. Legislative amendments and operational amendments should not pre-empt or distract from the medium-term imperative of a major transformation of the Fund, as envisaged, broadly, by the Road Accident Fund Commission Report; and

c. Reform and eventual transformation of the Fund is only one aspect of the challenge. Even more critical is the pursuit of all-round strategies to reduce the number of fatalities and injuries on our roads.