Monday , September 26 2022

Will the new scheme fix the broken one? | the business


"It's very wrong to work, and then the sheriff of the court comes to take a chair, letting you sit at the mill to finish your job."

This is what RAF employees in more than 100 offices throughout the country experienced, says Phumi Dhlomo, director of marketing for the Disaster Patent (RAF).

It may take more than 120 days to pay off the claim, which will inevitably be angry by the defendant approaching the court to use the movable property of the fund, Dhlomo said.

To avoid the loss of furniture, RAF is now renting it.

According to the Law on Public Finances and Management, the application should only take 30 days for processing. But the backlog of debts and insufficient funds for their payment have led to delays.

RAF is compulsory insurance that provides social security for victims of traffic accidents.

At an informative media meeting on Tuesday, the RAF acknowledged that its "legislative framework has resulted in insolvency since 1981".

The Road Traffic Safety Scheme (RABS) is intended to replace the existing RAF-managed system, and reduce long-term and costly litigation, high administrative costs, and extended claim settlement.

One of the major changes proposed by RABS is that "the guilt will not be considered by the applicant or other involved persons" in the accident of a vehicle.
The "without guilt" system aims to "create a new era of socioeconomic equilibrium" and reduce the negative consequences that the family of the driver finds guilty.

Since there will be no need to find guilt, individuals can apply without seeking legal aid.
According to the current RAF system, applicants must prove third-party negligence before they can reimburse the fund.

"The role of lawyers in the new scheme is expected to be limited in terms of eliminating the requirement of guilty and due to the fact that the benefits are defined," RAF said on Tuesday.

Last year, the applicants were paid more than $ 25 billion, while lawyers working for RAF and applicants earned about $ 8 billion.

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"Law firms benefit from RAF," Schussler said, "And you can not take lawyers from the system, but you can set a limit on how lawyers can be paid."

Lawyers, however, consider that their services are already limited. "The vast majority of applicants, and especially the poor or unemployed of road accident victims, are represented by lawyers through the provisions of the Extraordinary Benefits Act of 1997, which are narrowly regulated by courts and professions," said Jackui Sohn, Chairman of the Personal Injury Committee South African Society of Laws (LSSA).

"For the purposes of this Act, statutory fees are limited and limited to ensure that the prosecutor receives a fair amount of settlement or assignment."

The law also allows the applicant to challenge compensation for damages, Sohn said.

The LSSA rejected the notion that lawyers were unreasonably using the RAF; they provide valuable service by helping the applicant to understand a complex system.

"The lawyer representing the victim of a car accident has a professional duty to ensure the simplest and fairest way for a client," Sohn said.

He added that the error clause was a big deal. The LSSA proposed a hybrid scheme for the RABS Act, in which applicants could decide or not to make a policy without error.

"LSSA believes that usually the right of the injured party to sue a careless party for the balance of her loss that is not covered by the scheme must be retained," Sohn said.

Another proposed change would be to pay monthly rates to applicants, not full sum.

"The RAF payment traditionally had the effect of a lot," said Executive Director of the RAF Lindelva Jabava, "and is not used for what is intended, which leads to a claimant returning to seek again from the RAF, or to come to the South African Social Security Agency. "

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