1. The Road Accident Fund (Transitional Provisions) Bill
Presentation to the Select Committee on Public Services (NCoP)
30 October 2012

2. Purpose
To amplify certain matters raised at the Select Committee on Public Services on 16 October concerning the Road Accident Fund (Transitional Provisions) Bill

3. Background
At the last meeting held on 16 October 2012, three aspects were raised which we would like to revisit with the permission of the Committee.

4. Background These aspects are: the transitional nature of the Bill
the Contingency Fees Agreement Act
payment for the transfer of a matter to the High Court in terms of clause 2(1)(e)(ii)

5. Transitional Nature The Bill is not an amendment to the RAF Act.
“Stand alone” legislation. Measured lifespan.
Purposive. Once the Bill has served its function it will fall into disuse.
Focused. The Bill only addresses some claimants – not all claimants.

6. Target Group The Bill only addresses between 8 000 to
claimants who were:
passengers
injured before 1 August 2008
injured in circumstances where their driver was the “sole cause” of collision

7. Target Group
The target group includes passengers whose claims have not :
become prescribed
been settled; or
been finally determined by court

8. Target Group The target group excludes:
all passengers with limited claims who were injured before 1 August and whose claims have become prescribed or have been settled or determined by a court.

9. Target Group The target group also excludes:
all passengers who were injured before 1 August 2008 in circumstances where there was contributory negligence on the part of another driver

10. Contingency Fees
Contingency Fees Act : Department of Justice and Constitutional Development
Common law contingency agreement unlawful
Lesser of: 25% of capital or double normal fee
Payment after settlement
Act provides for mechanisms to protect

11. Contingency Fees RAF is concerned about excessive fees
RAF has addressed instances of overcharging
RAF has compelled compliance with Contingency Fees Act
RAF has revised offers of settlement
RAF has obtained court judgments compelling compliance

12. Transfer to High Court
Clause 2(1)(e)(ii) facilitates access to increased compensation
Protects rights of claimants by allowing transfer and preventing prescription.
Subject to High Court Rules and Magistrates’ Court Act (DoJ&CD))

13. Transfer to High Court
Only the following matters will be transferred :
where the claim cannot be settled with RAF AND summons has already been issued in Magistrates Court AND the amount of the claim now exceeds R

14. Transfer to High Court
Only claimants who are funding their own litigation will have to pay the “out of pocket’ expenses upfront.
RAF is ultimately liable for the claimants party and party costs upon settlement

15. Thank you
Questions and discussion