DA says major restructuring are needed to save Road Accident Fund

By Lelethu Mquqo
30 November 2010


The Democratic Alliance has expressed its concern that recently released details regarding the Road Accident Fund’s indebtedness are only the “tip of the iceberg”.

The Road Accident Fund in South Africa is a state insurer established by an Act of Parliament.

It provides insurance cover to all drivers of motor vehicles in South Africa in respect of liability incurred or damage caused as a result of a road accident

The DA says the fund has technically been insolvent for many years and despite several interventions it is still battling with a backlog of over 300 000 claims amounting to over R42 billion.

“The DA proposes that the RAF drastically cut its staff and reduce its executive pay packages – these executives have clearly failed and do not deserve such excessive salaries. The fund should also shift its focus away from litigation and towards administration. There is an enormous stock of legal precedent that can be utilised to settle unresolved cases.” said DA‘s Shadow Minister of Transport Stuart Farrow.

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