REPUBLIC OF SOUTH AFRICA

 

ROAD ACCIDENT FUND AMENDMENT BILL

 

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(As presented by the Portfolio Committee on Transport (National Assembly) (The English text is the official text of the Bill)

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(MINISTER OF TRANSPORT)

[B - 2004]

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011004SE

GENERAL EXPLANATORY NOTE:

[ ] Words in bold type in square brackets indicate omissions from existing enactments.

___________ Words underlined with a solid line indicate insertions in existing enactments.

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B I L L

To amend the Road Accident Fund Act, 1996, so as to extend the powers of the Fund regarding the conclusion of agreements; to alter the financial year of the Fund; to make new provision regarding the Board of the Fund; to further regulate the Fund’s obligation to compensate a third party for non-pecuniary loss, for certain hospital or medical expenses, for future loss of income or support and for funeral expenses; to require the Fund to compensate a provider of emergency medical treatment directly, in accordance with a certain tariff; to repeal certain provisions limiting the liability of the Fund to R25 000 in respect of claims; to make further provision regarding the instances where the liability of the Fund shall be excluded; to extend the application of the provision in terms of which a claim for compensation lies against the Fund or an agent only; to substitute the provision authorising the Minister to make regulations; to authorise the Minister to adjust certain amounts in order to counter the effect of inflation; and to provide for matters connected therewith.

BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:—

Amendment of section 4 of Act 56 of 1996, as amended by section 1 of Act 15 of 2001

1. Section 4 of the Road Accident Fund Act, 1996 (hereinafter referred to as the principal Act), is hereby amended–

(a) by the addition to subsection (2) of the following paragraph:

"(i) conclude any agreement with any person for the performance of any particular act or particular work or the rendering of particular services contemplated in this Act."; and

(b) by the addition of the following subsection:

"(4) (a) The Fund may conclude an agreement with any other organ of State regarding any matter provided for in this Act in order to improve or ensure–

(i) the effective management of the Fund;

(ii) the efficiency of the Fund;

(iii) co-ordination of functions;

(iv) co-operative governance contemplated in Chapter 3 of the Constitution.

(b) The Minister shall, by notice in the Gazette, publish a summary of the terms of any agreement concluded under paragraph (a).".

 

Amendment of section 6 of Act 56 of 1996

2. Section 6 of the principal Act is hereby amended by the substitution for subsection (1) of the following subsection:

"(1) The financial year of the Fund shall run from 1 [May] April of any year to [30 April] 31 March of the following year[: Provided that the first financial year of the Fund shall be deemed to have commenced on the 1st of May immediately preceding the commencement of this Act].".

Amendment of section 10 of Act 56 of 1996, as amended by section 1 of Act 43 of 2002

3. Section 10 of the principal Act is hereby amended—

(a) by the substitution for the heading of the following heading:

"Board of Fund[, and executive committee]";

(b) by the substitution in subsection (1) for paragraph (b) of the following paragraph:

"(b) at least 8, but not more than 12, members appointed by the Minister, [taking into account the recommendations referred to in subsection (9), if applicable,] who may not be in the full-time employment of any government, and who shall each command extensive experience in one or more of the fields of insurance, finance, medical service provision, law, accounting and actuarial science, or in matters relating to disabled persons, road users, commuters' or consumers' interests.";

(c) by the substitution in subsection (2) for paragraph (c) of the following paragraph:

"(c) hold office for a period of three years as from the date of appointment of such member, which period may be extended for a further period not exceeding three years.";

(d) by the substitution for subsections (6) and (7) of the following subsections, respectively:

"(6) The [Board shall as soon as possible] Minister shall[—

(a)] appoint two of [its] the members of the Board as Chairperson and Vice-Chairperson, respectively[;

(b) establish an executive committee of the Board, which shall consist of three members of the Board, the Chairperson and Vice-Chairperson of the Board and the Chief Executive Officer].

(7) The Chairperson, or in his or her absence, the Vice-Chairperson, shall at all times preside at meetings of the Board [and the executive committee]."; and

  1. by the deletion of subsections (8).
  2. By substitution of subsection (9) of the following subsection:

"(9) For the purposes of the appointment of the members of the Board referred to in subsection 1(b), the Minister must, though the media and by notice in the Gazette, invite nominations of persons as candidates for such appointments from a person or body having an interest in the operations of the Fund."

 

Amendment of section 11 of Act 56 of 1996

4. Section 11 of the principal Act is hereby amended by the deletion in subsection (1)(a) of subparagraph (iv).

Amendment of section 12 of Act 56 of 1996

5. Section 12 of the principal Act is hereby amended—

(a) by the substitution in subsection (1) for paragraph (a) of the following paragraph:

"(a) The Minister shall [upon the recommendation of the Board], with the concurrence of the Board, appoint the Chief Executive Officer of the Fund on such terms and conditions of employment [as he or she may determine: Provided that the Chief Executive Officer of the Multilateral Motor Vehicle Accident Fund holding that office immediately prior to the commencement of this Act, shall be deemed to have been appointed as such in respect of the fund in terms of this subsection] as the Board may determine.";

(b) by the substitution in subsection (1) for paragraph (b) of the following paragraph:

"The Chief Executive Office shall[—

(i)] be a person who commands a knowledge of the management of motor vehicle accidents insurance or motor vehicle accidents compensation matters[; and

(ii) hold office at the Minister's pleasure]."; and

(c) by the substitution in subsection (2) for paragraph (a) of the following paragraph:

"(a) exercise the powers and shall perform the functions of the Fund mentioned in section [(4)(1)(b), (c) and (d), (2) and (3)] 4.".

 

 

Substitution of section 17 of Act 56 of 1996

6. The following section is hereby substituted for section 17 of the principal Act:

"Liability of Fund and agents

17. (1) The Fund or an agent shall—

(a) subject to this Act, in the case of a claim for compensation under this section arising from the driving of a motor vehicle where the identity of the owner or the driver thereof has been established;

(b) subject to any regulation made under section 26, in the case of a claim for compensation under this section arising from the driving of a motor vehicle where the identity of neither the owner nor the driver thereof has been established,

be obliged to compensate any person (the third party) for any loss or damage which the third party has suffered as a result of any bodily injury to himself or herself or the death of or any bodily injury to any other person, caused by or arising from the driving of a motor vehicle by any person at any place within the Republic, if the injury or death is due to the negligence or other wrongful act of the driver or of the owner of the motor vehicle or of his or her employee in the performance of the employee’s duties as employee: Provided that the obligation of the Fund to compensate a third party for non-pecuniary loss shall be limited to the amount of R100 000 in respect of each claimant and shall be paid by way of a lump sum: Provided further that the Fund's obligation to pay such compensation shall only extend to a third party who suffers a serious injury as contemplated in subsection (1A)

(1A) (a) Assessment of serious injuries shall be based on a prescribed method adopted after consultation with medical service providers and shall be reasonable in ensuring injuries are considered in relation to the circumstances of the third party.

(b) Assessment shall be carried out by provincial medical panels consisting of a representative from the Fund and external experts representing key medical fields relevant to road accident injuries.

(c) The Minister shall set up a peer review panel to oversee the assessments made by panels contemplated in paragraph (c).

[(2) Upon acceptance of the amount offered as compensation in terms of subsection (1) the third party shall be entitled to the agreed party and party costs or taxed party and party costs in respect of the claim concerned.]

(3) (a) No interest calculated on the amount of any compensation which a court awards to any third party by virtue of the provisions of subsection (1) shall be payable unless 14 days have elapsed from the date of the court’s relevant order.

(b) In issuing any order as to costs on making such award, the court may take into consideration any written offer, including a written offer without prejudice in the course of settlement negotiations, in settlement of the claim concerned, made by the Fund or an agent before the relevant summons was served.

(4) Where a claim for compensation under subsection (1)—

(a) includes a claim for the costs of the future accommodation of any person in a hospital or nursing home or treatment of or rendering of a service or supplying of goods to him or her, the Fund or an agent shall be entitled, 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, to compensate

(i) the third party in respect of the said costs after the costs have been incurred and on proof thereof; or

(ii) the provider of such service or treatment directly,

in accordance with the tariff contemplated in subsection (4A);

(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 instalments in arrear as agreed upon] the amount payable by the Fund or an agent−

(i) shall be paid by way of a lump sum;

(ii) shall be calculated up to the date the third party would have reached the age of 65, but in the case of a claim for support by a dependent child, shall be calculated up to the age the child would reach 21 years; and

(iii) shall be calculated up to an amount not exceeding R160 000 per year.

(4A) (a) The liability of the Fund or an agent regarding the tariff contemplated in subsections (4)(a), (5), (6) and (7) shall, in the case of compensation for–

(i) public health care, be based on tariffs determined for providers of such services; and

(ii) private health care, be based on the National Health Reference Price List published by the Council for Medical Schemes,

and such tariffs shall be prescribed by the Minister after consultation with the Minister of Health.

(b) The tariffs contemplated in paragraph (a) shall be prescribed after consultation with medical service providers and shall be reasonable compensation, taking into account factors such as the cost of such treatment and the ability of the Fund to provide the compensation.

(5) Where a third party is entitled to compensation in terms of this section and has incurred costs in respect of accommodation of himself or herself or any other person in a hospital or nursing home or the treatment of or any service rendered or goods supplied to himself or herself or any other person, the person who provided the accommodation or treatment or rendered the service or supplied the goods (the supplier) may claim [the] an amount in accordance with the tariff contemplated in subsection (4A) direct from the Fund or an agent on a prescribed form, and such claim shall be subject, mutatis mutandis, to the provisions applicable to the claim of the third party concerned, and may not exceed the amount which the third party could, but for this subsection, have recovered.

(6) The Fund, or an agent with the approval of the Fund, may make an interim payment to the third party out of the amount to be awarded in terms of subsection (1) to the third party in respect of medical costs, in accordance with the tariff contemplated in subsection (4A), loss of income and loss of support: Provided that the Fund or such agent shall, notwithstanding anything to the contrary in any law contained, only be liable to make an interim payment in so far as such costs have already been incurred and any such losses have already been suffered.

(7) (a) When a person has provided a third party with emergency medical treatment, the Fund shall compensate such person directly, according to the tariff contemplated in subsection (4A), irrespective of any negligence or wrongfulness on the part of any person.".

 

Amendment of section 18 of Act 56 of 1996

7. Section 18 of the principal Act is hereby amended–

(a) by the deletion of subsection (1); and

(b) by the substitution for subsection (4) of the following subsection:

"(4) The liability of the Fund or an agent to compensate a third party for any loss or damage contemplated in section 17 which is the result of the death of any person shall in respect of funeral expenses be [limited to the necessary actual costs to cremate the deceased or to inter him or her in a grave] fixed at R5 000.".

Amendment of section 19 of Act 56 of 1996

8. Section 19 of the principal Act is hereby amended–

(a) by the substitution for paragraph (b) of the following paragraph:

"(b) suffered as a result of bodily injury to or death of any person who, at the time of the occurrence which caused that injury or death[—

(i)] was being conveyed for reward on a motor vehicle which is a motor cycle[; or

(ii) is a person referred to in section 18(1)(b) and a member of the household, or responsible in law for the maintenance, of the driver of the motor vehicle concerned, and was being conveyed in or on the motor vehicle concerned]; or";

(b) by the addition at the end of paragraph (f)(ii) of the word "or" and by the addition of the following subparagraph:

"(iii) to attend a meeting arranged at the request of the Fund in order to elucidate matters relating to the claim, or at such meeting fails to respond truthfully and to the best of his or her knowledge to questions put."; and

(c) by the addition of the following paragraph:

"(g) suffered as a result of an emotional shock sustained by that person when that person witnessed or observed or was informed of the bodily injury or the death of another person as a result of the driving of a motor vehicle.".

Substitution of section 26 of Act 56 of 1996

10. The following section is hereby substituted for section 26 of the principal Act:

"Regulations

26. (1) The Minister [shall or] may make regulations [to prescribe any matter which] regarding any matter that may or must be prescribed in terms of this Act [shall or may be prescribed] or which [may be] it is necessary or expedient to prescribe in order to achieve or promote the object of this Act.

(2) Without derogating from the generality of subsection (1), the Minister may make regulations regarding−

(a) the method of assessment to determine whether, for purposes of section 17, a serious injury has been incurred;

(b) injuries which are, for the purposes of that section, not regarded as serious injuries;

(c) the establishment of provincial assessment panels who shall have the power to determine the nature of injuries sustained as a result of a road accident;

(d) the establishment of provincial peer review panels to oversee the assessment process and outcomes;

(e) the resolution of disputes about the assessment of the nature of an injury.

(f) reports on the recovery of patients to be submitted to the Fund by medical service providers;

(g) periodical assessment of injured persons;

(h) the resolution of disputes between the Fund and health care providers.

(i) persons who shall be recognized as providers of emergency medical treatment;

(j) the procedure and format in which providers of emergency medical services must submit their claims to the Fund;

(k) reports to be submitted to the Fund by medical service providers;

(l) the resolution of disputes between the Fund and providers of emergency medical treatment.

(3) Any regulation contemplated in subsection (1) or (2) may for any contravention of or failure to comply with its provisions or the provisions of this Act, provide for penalties of a fine or imprisonment for a period not exceeding three months.".

Insertion of section 26A in Act 56 of 1996

10. The following section is hereby inserted in the principal Act, after section 26:

"Amendment of certain amounts

26A. (1) The Minister may, after consultation with the Board, by notice in the Gazette amend any amount referred to in section 17 or 18(4) in order to counter the effect of inflation.

(2) The Minister shall, al least 120 days before any amendment contemplated in paragraph (a), publish a notice in the Gazette–

(a) stating the intention to amend the amount;

(b) setting out the proposed content of the amendment; and

(c) inviting comment or objections for submission to the Director-General: Transport within the period specified in that notice.".

Savings

11. Any claim for compensation under section 17 of the principal Act in respect of which the cause of action arose prior to the date on which this Act took effect must be dealt with as if this Act had not taken effect.

Short title

12. This Act is called the Road Accident Fund Amendment Bill, 2004, and takes effect on a date determined by the President by proclamation in the Gazette.